BSP, Indonesian counterpart ink cooperation
Credit to Author: Mayvelin U. Caraballo, TMT| Date: Mon, 03 Feb 2020 16:18:14 +0000
Philippine and Indonesian monetary authorities have agreed to work together to provide a framework for closer cooperation between their central banks to achieve a more secure, efficient and reliable payment system, and promote digital financial innovation.
In a statement on Monday, the Bangko Sentral ng Pilipinas (BSP) announced it signed a memorandum of understanding (MoU) with the Bank Indonesia (BI) on cooperation in the said areas.
The document was signed by BSP Governor Benjamin Diokno and BI Governor Perry Warjiyo also on Monday.
“The MoU signing was held to conclude a bilateral meeting between the two central banks which fruitfully discussed numerous advances in digital economy and central banking, infrastructure financing using market instruments, and sustainable financing frameworks,” the BSP said.
“At the end of the meeting, both central banks expressed their commitment to strengthen bilateral cooperation in further enhancing mutual economic and financial system development,” it added.
Diokno earlier emphasized the BSP continues to advance its financial inclusion agenda with digital innovations as a catalyst and strategic enabler.
“Facilitating digital access means expanding the delivery of basic financial services through mobile phones, cards or the internet. Such services should be suited to the customers’ needs and delivered responsibly, at a cost affordable to customers and sustainable for providers,” he said.
With this, Diokno noted the BSP has been gearing up for the development of a digital finance ecosystem that facilitates diversity of players catering to the various needs of the public, particularly the low-income and financially unserved and underserved segments.
Such an ecosystem is built on three pillars: democratized access to a transaction account wherein every person is able to open an account and use digital financial services; establishment of an expansive network of low-cost touch points to serve the country’s financial intermediation needs; and efficient retail payment system architecture through the National Retail Payment System framework that promotes interoperability, allowing digital financial transactions to be sent and received from an account to any account, whether held in a bank or an e-money issuer, he added.