BAGUIO CITY-- The Bangko Sentral ng Pilipinas (BSP) is urging residents to avail of the services of banks for their financial needs and in keeping savings.
“That’s why we have this financial inclusion advocacy and public information campaigns because we are educating people to use the financial institutions to transact business, in remitting money, pay bills and save money,” said Beta Cervantes, Director of the Bangko Sentral ng Pilipinas (BSP) La Union Regional Office in a telephone interview on Wednesday (December 19).
The National Economic Development Authority (NEDA) Cordillera conducted the 2018 economic and financial literacy forum for students, workers and other stakeholders in the city on December 17, as part of the advocacy of the government.
She added that “we encourage them to also save their money in the banks so that it will be safer and for a more efficient use of their financial resources.”
Cervantes reported that in the Philippines, only 48 percent of adults are maintaining savings in banks while seven out of 10 Filipinos keep their savings at home.
“That’s why Bangko Sentral hopes to fully advocate this to everyone, to have banks and save,” Cervantes said.
She added that out of the 1,634 cities and municipalities in the country, only 551 have banks within their jurisdiction.
In the Cordillera, out of the 77 cities and municipalities, only 46 have banks.
Cervantes explained that the BSP has come up with the branch-like system, if only to service far flung communities.
“Ang BSP nag adopt na rin ng branch-like kung saan ang mga bangko pwedeng magtatag ng opisina doon [far flung areas] na hindi naman necessary to carry the whole branch function, kung ano lang yung kailangan (BSP has come up with the branch-like where the banks need not establish an entire branch but only the services needed by the community) like receiving deposits, withdrawals, remittances and other services depending on the need of the community.”
“Banks also study service is needed by the community,” Cervantes added.
She said that the BSP had informed banks of the list of “unbanked” towns and cities for their appreciation.
“We want them to see it as an opportunity.”
Banks, she added, also conduct socio-economic studies in a place before they open a branch. Among the factors banks look into are the number of businessmen, economic activity in the place, remittances and the other potential services that they can provide.
Safety is also another reason that banks look into.
“Number one na tinitingnan yan. Cordillera is relatively safe but they are more on the transactions that will be served. Cordillera is fast improving economically,” Cervantes added.
Banking plays an important role in the development of a place and in helping improve the economic condition of people.
“It is the advocacy of the BSP to reach all Filipinos and make them avail of the financial products and services especially in saving their money.”
“People will be encouraged to save money. Its always wise to have savings in the households to have something in cases of emergency,” making banks’ presence relevant.
She added that people tend to spend money in their possession, which will change if there are banks.
“Sa ngayon kasi medyo consumerism ang kanilang tendency. Pag may money, number one sa list ano ang bibilihin only to find out later na hindi naman kailangan at very necessary at pag nagkasakit ang anak or tayo, wala tayong savings na mapaghuhugutan (People right now have the tendency to be more on the consumerism side where if they have money, they buy the first thing on their list which will later on be found to be unnecesary. If we or a family member gets sick, we wont have anything to bring out),” Cervantes also said in explaining the importance of savings and saving in a bank.
Aside from that, she also said that overseas workers need to be encouraged to use banks in remitting money to their families.
Baguio economy
In Baguio, the urban center of the Cordillera has several banks with numerous branches for each, operating in almost all corners of the city.
“Nagpapakita yan na maramin talagang financial transactions sa Baguio (This also had shown there were plenty of financial transactions in Baguio). In some areas, there are rural banks that cater to the banking needs,” she pointed out.
Cervantes said that the BSP is currently constructing a branch office in Baguio, which will open in 2019. (PNA)
