1. Pursuing Financial Inclusion, Financial
Education and Consumer Protection:
The Case of the Philippines
Dr. Johnny Noe E. Ravalo
Assistant Governor
Financial Supervision Research and
Consumer Protection Sub-Sector
OECD-Thailand Seminar on Financial Inclusion and
Financial Literacy in Asia, Bangkok, Thailand, Dec 2014

2. The Persuasive Argument For Financial Inclusion
Financial markets
cannot be simply
about skylines and
formal businesses
…it must recognize
subtle differences
across markets
…and respond to
the needs of its
broad stakeholders

3. Plus the Realities of an Archipelagic Economy
Baguio is centered on tourism and its educational
institutions, of which it has at least eight colleges
and universities, as well as a plethora of trade and
technical schools. Based on previous census,
almost half of the city's population are students,
many of whom come from nearby provinces, with
numerous foreign students to add to the diversity.
Cebu is one of the most developed provinces in the
Philippines , frequently ranked as among the best
island destinations. It has popular tourist
destinations such as Mactan Island and Moalboal. In
a decade it has transformed into a global hub for
furniture making, tourism, business processing
services, and heavy industry
Cagayan de Oro is the melting pot of
Mindanao because of its accessibility,
business growth and attractions. Being
the business hub of Northern Mindanao
region, the city is among of the most
progressive & competitive cities in the PHL.

4. Plus the Realities of an Archipelagic Economy

5. Three-Pronged Approach to Financial Inclusion
Broadening access
to financial prod’s
and services
Expanded
physical network
• Liberalized branch banking
• Micro-banking Offices
• Other Financial Service Provider
• Technology driven business
models
Improving mix of
financial products
• Microdeposit
• Microenterprise loan
• Micro-housing/Micro-agri loan
• Microinsurance
Customer
On-Boarding
• Updated AML rules and
regulations

6. Broadening access
to financial prod’s
and services
Deepening roots
of financial
education
• Saving for the future (retirement)
• Saving for uncertainties (liquidity)
• Avoid over-indebtedness
• Protection from fraud and scam
Three-Pronged Approach to Financial Inclusion

7. Broadening access
to financial prod’s
and services
Extending the
scope of consumer
protection
The BSP financial consumer protection framework
visualizes an engaged stakeholder in an inclusive
financial system and an enabling environment that
protects the interest of financial consumers
Deepening roots
of financial
education
Three-Pronged Approach to Financial Inclusion

8. Broadening access
to financial prod’s
and services
Extending the
scope of consumer
protection
Deepening roots
of financial
education
Three-Pronged Approach to Financial Inclusion
• Transparency & disclosure
• Fair treatment
• Protection of information
• Redress mechanisms
• Financial education
Rate the banks on a scale of 1 to 4

9. The Demographic Challenges Are Not Trivial

10. The Demographic Challenges Are Not Trivial

11. (20,000)
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
under 40,000 40,000-59,999 60,000-99,999 100,000-249,999 250,000 and over
Total Savings of Families by Income Class
NCR
Central Visayas
SOCKSARGEN
No saving is reported for
families earning less than
P100,000 p.a.
Saving is highly dependent
and skewed towards high
income
The Demographic Challenges Are Not Trivial

12. The Demographic Challenges Are Not Trivial

13. Financial
Stability
Banking
Supervision
Consumer
Protection
Source: www.hotfrog.com
Institutionalizing Consistency and Commitment

14. Poverty Alleviation
Without sustained means to
generate cashflows
Financial Awareness
With cashflow but a passive
entity in the market
Financial Inclusion
Smaller scale cashflows with
no regular access
Consumer Protection
With cashflow but vulnerable to
malfeasance
Institutionalizing Consistency and Commitment

15. Institutionalizing Consistency and Commitment
• Surveys all say that Financial literacy
levels are rather low . . .
• But we also have a hard time with
evaluating our interventions
• Demographic differences should
matter in our delivery and the
content of materials
• Stakeholder support is essential …
but conflicts of interests are present

16. Pursuing Financial Inclusion, Financial
Education and Consumer Protection:
The Case of the Philippines
Dr. Johnny Noe E. Ravalo
Assistant Governor
Financial Supervision Research and
Consumer Protection Sub-Sector