THE combined volume of electronic fund transfers done through PesoNet and InstaPay has hit 107 million, with the value of transactions reaching P1.5 trillion in the first quarter of 2021.
Volume grew by 365 percent and value by 171 percent compared to the same period in 2020, the Bangko Sentral ng Pilipinas (BSP) reported.
The BSP said it saw an improvement in the country’s participation in the global digitalization through increased e-commerce and digital payment transactions.
“Digital records of sales and payment transactions can be used in assessing the creditworthiness of a business which will unlock access to other welfare-enhancing financial services such as digital credit, insurance and investment, among others,” BSP Gov. Benjamin Diokno said during the Micro, Small and Medium Enterprises (MSME) Day: Negosyo Bounce Back webinar.
Diokno said this trend may be primarily driven by the desire to serve and retain their client-base, but it has also enabled MSMEs to expand their market.
It propelled MSMEs to participate in the digital economy.
He said they “welcome innovative solutions that leverage on data and digital technologies in providing wider financing options and tailored financial products” for the MSMEs.
The BSP chief said digital payment streams can broaden MSMEs’ access to finance.
Interventions
With support from the various banking industry associations and the Department of Trade and Industry, the BSP said it will introduce the adoption of a standard business loan application form which will make the loan application documents of banks simple and borrower-friendly.
Moreover, to better understand the needs and challenges faced by the MSME sector, the BSP is also supporting the Asian Development Bank in conducting a national MSME Survey, which, according to Diokno will generate new insights and more granular data on MSME’s access to finance.
The BSP is also supporting the adoption of innovative financing schemes such as the agriculture value chain financing and supply chain financing to enhance the bankability of agri-businesses and MSMEs and to increase the capacity of financial institutions in serving in underserved markets. (JOB)