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October 02, 2023

Strong, technology-driven microfinance sector pushed

The Bangko Sentral ng Pilipinas (BSP) is pushing a strong and technology driven microfinance sector to provide funds to entrepreneurs particularly in far-flung areas in the country.

BSP Governor Benjamin Diokno said the recently launched National Strategy for Financial Inclusion (NSFI) 2022-2028 increases focus and support to the microfinance sector as part of a whole of government approach toward a more financially included and empowered citizenry.

“Supporting the digital transformation and capacity building of microfinance institutions (MFIs) are priorities under the new NSFI. A strong and technology-driven microfinance sector can provide safe and innovative financial products to its microentrepreneur clients,” Diokno said.

Microfinance has long served the entrepreneurial poor, serving as a better alternative to “5-6” lending with its uncollateralized loans, simple requirements, fast processing, and frequent amortization.

Likewise, MFIs are among the principal drivers of last-mile financial inclusion as it is present in more than half or 57 percent of the unbanked local government units (LGUs) nationwide.

BSP data showed a total of 144 banks are engaged in microfinance, providing safe and affordable financial services to around two million borrowers, with total microfinance loan portfolio of P26 billion, while non-bank MFIs such as cooperatives assisted 8.8 million members with total outstanding loans of P288 billion.

Furthermore, microfinance non-government organization (NGOs) serve 6.2 million clients with total outstanding loans amounting to P50 billion.

“Under the new NSFI, the BSP reiterates its support for microfinance as a viable source of sustainable financing for rural communities and microenterprises, promoting greater financial inclusion,” Diokno said.


PNB recognized during SSS’s 66th anniversary celebration

The Social Security System (SSS) has bestowed two prestigious awards upon Philippine National Bank (PNB), designating them as the “Best Collection Partner” for the Overseas Bank category and the “Best Disbursement Partner” for the Universal Bank category during the “Balikat ng Bayan” Awards (BBA) 2023 ceremony held at the SSS Main Office in Quezon City on September 8.

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