THE passage of the Konektadong Pinoy (or Open Access in Data Transmission) bill will allow broadband infrastructure development in rural areas, thereby increasing access to transaction accounts, FinTech Alliance.PH said.
In a statement on Monday, FinTech Alliance.PH said the passage of the measure will help the Bangko Sentral ng Pilipinas (BSP) achieve its goal of bringing access to transaction accounts to 70% of adults.
“The Konektadong Pinoy bill is poised to be a crucial policy enabler, ensuring that every Filipino, regardless of their location, gains access to financial technology,” according to Angelito M. Villanueva, founding chairman of FinTech Alliance.PH.
The BSP’s recent financial inclusion survey indicates that 70% of salaries in the private sector are still paid in cash.
The central bank hopes to increase online payments to 60-70% of all retail transactions by volume by 2028, in line with the Philippine Development Plan.
In July, the BSP reported that digital payments made up 52.8% of retail transaction volume last year.
According to FinTech Alliance.PH, the bill will help provide access to affordable, reliable, and secure internet connections, which is vital to the adoption of digital payments.
“The Konektadong Pinoy bill seeks to bridge the digital divide by encouraging the entry of more internet service providers (ISP) to improve service quality,” it said.
“It also includes consumer protection provisions, such as ISP performance standards and enhanced cybersecurity safeguards, which are not present in current laws,” it added.
Identified among the priority bills of the Legislative-Executive Development Advisory Council, the Konektadong Pinoy bill aims to simplify the approval process for network operators, promote efficient management of the radio spectrum, and promote sharing of infrastructure.
The House of Representatives passed a version of the measure on third reading in December 2022, while its Senate counterpart, Senate Bill No. 2699, is currently set for floor debate. — Justine Irish D. Tabile