00:00 From news and views, issues and opportunities, we'll have in-depth conversations with decision
00:06 makers to find out what they know and what they think.
00:11 I'm Rico Gizon, inviting you to join the exchange because your business is our business.
00:19 The financial sector has embraced technology at a faster pace thanks to COVID restrictions
00:25 which have now been relaxed.
00:28 Marketing and most marketplace transactions are now cashless and Filipino consumers are
00:33 keeping up with the times.
00:35 With these innovations, planning for the future and preparing our loved ones have become easier
00:42 and more efficient.
00:43 And amid uncertainties, how can we better protect our hard-earned funds?
00:48 The vision of sound financial management in our C-SWEET vision.
00:55 Cashless payments have become an integral part of our daily lives, but how has going
01:11 digital impacted the way our kababayans handle money?
01:16 Let's now have an exchange with Banco Central ng Pilipinas Deputy Governor, Berna Romulo
01:21 Puyat.
01:22 Berna, great to have you back on the program.
01:24 How important is it to be financially literate, especially as we transition to post-COVID
01:29 life?
01:30 Yeah, basically when you talk about financial literacy, it's more of the ability to understand
01:36 and use various financial products.
01:38 And with this knowledge, you are able to make informed decisions.
01:43 But unfortunately, when you look at the latest Banco Central ng Pilipinas financial inclusion
01:48 survey, Filipinos have a limited understanding of basic financial concepts.
01:54 Like for example, only two out of 10 Filipinos were able to answer six basic financial literacy
02:00 questions and only seven out of 10 Filipinos were able to answer at least half of these
02:06 six basic financial literacy questions.
02:09 But Berna, when we were stuck at home during this pandemic, we were bombarded by the digital
02:16 platform.
02:17 Have not our Kababayans become more financially literate with the popularity of digital transactions?
02:23 Well, what happened was from 2019 to 2021, there were 22 million more transaction accounts
02:32 and that the bulk was e-money accounts.
02:34 Yes, you're right, because of the lockdowns and the pandemic, it accelerated digitization.
02:42 But of course, the BSP also had our own digital financial literacy sessions because of the
02:49 increased digitalization.
02:50 I have to say, out of the 22 million that onboarded, that had transaction accounts,
02:55 21.8 million were e-money accounts.
02:59 But then it is also important as we promote digitalization and as more and more people
03:03 have digital accounts, it's important to have digital financial literacy lessons.
03:12 For example, it's simple to avoid phishing, phishing, or the simplest is not to share
03:19 your OTP.
03:20 Wow.
03:21 So it just goes to show that there are so many challenges that the government faces
03:30 in promoting financial literacy.
03:33 You mentioned about the rapid advancements in technology and as well the rapid developments
03:38 in cybercrime.
03:39 What can Filipinos do better in protecting ourselves from cybercriminals?
03:44 Again, what we were saying is first, don't share your personal information.
03:49 Or when people call you asking for personal information, don't share it.
03:54 Or the simple OTP.
03:57 Sometimes Rico, because I handle the consumer protection, and I see all the complaints and
04:02 sometimes the educated are the ones you see who are being fooled.
04:08 So again, to avoid phishing, phishing, and please do not share your personal information.
04:16 Because the way with e-wallets is important.
04:20 It has really revolutionized.
04:23 It's really easier and more convenient for everybody.
04:26 But of course, the ones who are fooled are also included.
04:30 So our digital financial literacy sessions are continuous so that we won't be fooled
04:36 and to take advantage of this digitalization.
04:41 It has to be sustained.
04:43 What are the goals right now of the Banco Central ng Pilipinas for our kababayans to
04:48 join the digitalization bandwagon?
04:52 Well, we have what we call, we have this PalenQ RPH Plus, which we've been implementing since
04:59 June of last year to promote cashless payments, especially in the markets and for our tricycle
05:06 drivers and to show the convenience, especially, for example, when the more you use your e-wallets,
05:15 what they don't know is the more you use your e-wallets, this actually becomes, you build
05:20 your digital footprint.
05:22 And then you can see now when you build your digital footprint, you can borrow based on
05:27 your digital footprint.
05:28 You don't have to rely on collateral.
05:31 So and then the more they use it, they can already pay their bills at the comfort of
05:35 their homes.
05:37 And it's easier to put up, to open a digital wallet.
05:42 So it's easier for everybody.
05:45 And we are also promoting this, of course, not only for the PalenQ tricycle drivers,
05:49 for also those that are unbanked.
05:50 That's why I think that's the reason why there are more e-money accounts now than bank deposit
05:55 because of the ease of opening up our e-wallets.
06:00 Thank you so much, Berna, for this financial literacy exchange.
06:04 Banko Sentral ng Pilipinas Deputy Governor, Berna Romulo Puyat.
06:10 Here now are the week's top business stories.
06:12 The government has released the implementing rules and regulations for the controversial
06:15 Maharlika Investment Fund Act, and these will be taking effect on September the 12th.
06:22 The Banko Sentral sees faster inflation in the month of August, mainly due to higher
06:27 rice and fuel prices.
06:29 The government's budget deficit in July was cut by nearly 45 percent amid higher revenue
06:33 collections.
06:34 That's according to the Bureau of Treasury.
06:37 And coming up on the Exchange where your business is our business.
06:42 Wealth management is one of the ways we can better prepare for our future.
06:46 Sun Life Philippines joins us next.
06:50 And from saving up to investing, there are many habits that make us financially wise
06:56 and smart.
06:57 We have an exchange with a money management firm right here on CNN Philippines.
07:02 News you can trust.
07:05 [Music]
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