The FinTech Alliance.PH has expressed strong support for the proposed Konektadong Pinoy Law, highlighting its potential to significantly enhance broadband infrastructure development in rural areas and consequently increase the number of Filipinos with transaction accounts.
Lito Villanueva, Founding Chairman of FinTech Alliance.PH and Executive Vice President and Chief Innovations and Inclusion Officer of RCBC, emphasized the bill’s importance in achieving the Bangko Sentral ng Pilipinas’ (BSP) goal of enabling 70% of adult Filipinos to open transaction accounts. “FinTech Alliance.PH is committed to supporting the Bangko Sentral ng Pilipinas’ (BSP) goal of having 70% of adult Filipinos open transaction accounts. The Konektadong Pinoy bill is poised to be a crucial policy enabler, ensuring that every Filipino, regardless of their location, gains access to financial technology,” Villanueva said.
The Konektadong Pinoy bill aims to address the barriers to digital payment adoption by improving internet access nationwide. The 2019 Financial Inclusion Survey by the BSP revealed that many Filipinos are reluctant to engage in online financial transactions due to issues such as lack of trust, awareness, and inadequate internet connectivity. The proposed law seeks to bridge this gap by encouraging more internet service providers (ISPs) to enter the market, thereby improving service quality and coverage.
In addition, the bill includes provisions for consumer protection, such as ISP performance standards and enhanced cybersecurity safeguards. These measures are designed to build public confidence in digital transactions, which are seen as vital for the growth of the fintech industry and the expansion of digital payments.
The bill, which has already been approved by the House of Representatives on third reading, is currently under deliberation in the Senate. It is sponsored by Senate Science and Technology Chairperson Alan Peter Cayetano, with co-sponsorship from Senators Sherwin Gatchalian, Joel Villanueva, Loren Legarda, and Pia Cayetano.
The FinTech Alliance.PH, the largest industry association of fintech and digital players in the Philippines, remains optimistic about the bill’s swift passage in the Senate before the next legislative recess. With over 100 corporate members, the organization represents more than 95% of digital-initiated transaction volume in the country, making it a significant advocate for financial inclusion.
The enactment of the Konektadong Pinoy law is seen as a critical step in achieving the BSP’s financial inclusion objectives, providing all Filipinos with the opportunity to participate in the digital economy.