According to Deloitte, regulators have three important roles to play. They should offer an environment that is transparent and easy for businesses and individuals to navigate in. They should encourage innovation while protecting the public from unintended consequences. They should operate efficiently and provide excellent customer service using digital and other emerging technologies as enablers.
Case in point, the Bangko Sentral ng Pilipinas (BSP) signed a memorandum of understanding (MoU) with the Bank Indonesia (BI) on 3 February 2020 to cooperate in the area of payment systems and digital financial innovation. The MoU aims to achieve a more secure, efficient, and reliable payment system, and to promote digital financial innovation.
“Our goal is to continue to leverage on emerging digital innovations -use of blockchain technology, fintech, mobile payments, and digital currencies, among others- to promote a more efficient and inclusive financial system,” said Benjamin E Diokno, governor of Bangko Sentral ng Pilipinas.
He stressed that the need to foster an enabling ecosystem, bound by parameters set by BSP as a financial regulator, where responsible innovations are encouraged to thrive and expand. In doing so, we also engage other central banks who are keen on pursuing similar policies.
FutureCIO spoke to Lito Villanueva, executive vice president and chief innovation & inclusion officer with Rizal Commercial Banking Corporation (RCBC Bank) on the efforts by the BSP to create a regulatory environment that is conducive towards innovation and financial inclusion.
Watch the full video (1:15 minutes) above.