Visa Pushes for Financial Inclusion in Philippines

Thursday, May 7, 2015

There is an opportunity for financial inclusion in the Philippines, and VISA is banking on such potential.

The multinational financial services company pushes for financial inclusionunder its corporate social responsibility (CSR) arm. It cites that financial inclusion is about bringing more people into the formal financial system – a global imperative for governments, non-governmental organizations (NGOs), and the private sector.

“Access to formal financial services can help improve the daily lives of the financially underserved and create opportunities to alleviate poverty among this population,” VISA said.

Banking the unbanked

About 60% of adults in the Philippines are still unbanked, Stephen Kehoe, VISA’s senior vice president and head of global financial inclusion cited, attributing the figure to a World Bank report. (READ: More poor Filipinos own financial accounts – BSP)

As such, VISA is bringing such effort to the Philippines by partnering with Philippine government and NGOs through the use of electronic payment (e-payment) accounts.

Kehoe said the number of people in the country who receive wages through e-payment accounts is only 6% – 7% below the regional average of 15%.

“This tells us that if we can convert more cash wage payments into electronic form, it will be a key driver in helping move financial inclusion,” Kehoe said in a media briefing on Tuesday, May 5.

Source: Rappler (link opens in a new window)

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banking, digital payments, financial inclusion, unbanked