NextGen Day

Small firms will profit from the financial system’s digitization among other things because they will have the additional documentation needed to secure loans.

Bangko Sentral ng Pilipinas (BSP) Governor Felipe Medalla stated that financial inclusion in the nation increased during the pandemic due to the surge in the use of digital payments after the government implemented movement restrictions during the 56th Asian Development Bank (ADB) annual meeting currently taking place in Incheon, South Korea.

According to him, as technology is used more frequently in the financial system, small firms will have easier access to financing as a result. “If you include a financial trail, that will be very helpful,” he said.

But according to Medalla, “subsidized guarantee fees for first-time borrowers are indispensable.”

The BSP president however noted that “the other problem is if people see that government is there, they feel like they can get away without paying,” stating that “(with) the private sector, the obligation to pay is strong.”

There are numerous more factors, but the government’s ability to target those industries and correctly collect taxes is indispensable, according to him.

Since banks and financial technology companies, which provide electronic payment services, are unable to address this, Medalla claimed that the connectivity and telecommunication signal issue is being addressed.

In his words, “the private sector is quite imaginative” when it comes to providing services.

“Only the government is able to do many things. That’s the signal, and it’s also important to give the poor a safety net in case of calamity, he continued.

Save/Share this story with QR CODE

---

Disclaimer

This article is for informational purposes only and does not constitute endorsement of any specific technologies or methodologies and financial advice or endorsement of any specific products or services.

Need to get in touch?

Feel free to Contact NextGenDay.com for comments, suggestions, reviews, or anything else.

---

We appreciate your reading. Simple Ways To Say Thanks & Support Us:
1.) GIVE A TIP. Send a small donation thru Paypal
Your DONATION will be used to fund and maintain NEXTGENDAY.com
Subscribers in the Philippines can make donations to mobile number 0917 906 3081, thru GCash.
3.) BUY or SIGN UP to our AFFILIATE PARTNERS.
4.) Give this news article a THUMBS UP, and Leave a Comment (at Least Five Words).

---

AFFILIATE PARTNERS

World Class Nutritional Supplements - Buy Highest Quality Products, Purest Most Healthy Ingredients, Direct to your Door! Up to 90% OFF.
Join LiveGood Today - A company created to satisfy the world's most demanding leaders and entrepreneurs, with the best compensation plan today.

---