DOF confirms investment in digital economy, fintech – Manila Bulletin

The Department of Finance (DOF) said the government remains committed to investing in the digital economy, emphasizing the valuable role of technology in finance.

In a statement, Finance Secretary Benjamin E. Diokno said the Marcos administration is making fundamental investments in the digital economy, citing that technology has a “well-defined role” in the financial world.

“It facilitates a more inclusive and efficient financial system,” Diokno said. [Thus]we will need the best technologies, ideas and people to ensure that Filipinos have access to enormous opportunities at their fingertips.”

During the recent Digital Banking Asia conference, Diokno shared that the government is in favor of a rapid adoption of fintech, recognizing that the digital transformation of the country’s financial systems will lead to greater financial inclusion and opportunity.

For example, the DOF is closely monitoring the digitization of its key revenue-generating agencies, the finance chief said.

The Digital Transformation (DX) program of the Bureau of Internal Revenue (BIR) aims to transform the agency into a data-driven organization. Revenue workers will be digitally empowered to deliver high quality public services and improve the overall taxpayer experience.

The Bureau of Customs (BOC) collaborated with the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) to establish a national action plan for paperless cross-border trade.

The World Bank also funded the Philippine Customs Modernization Program (PCMP) which is now transforming the BOC from a manual paper-based organization to a digitized one.

“By 2024, we expect to fully modernize the customs office in accordance with international standards,” Diokno said.

Digital banks are on the rise with the Bangko Sentral ng Pilipinas (BSP) developing a digital financial market model.

The government is also accelerating the rollout of the Philippine Identification System (PhilSys) to enable seamless financial transactions and more efficient delivery of social services.

Moreover, the landmark Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act strengthens the culture of research, development and innovation in the country.

The amendments to the Retail Trade Liberalization Act (RTLA), the Public Service Act (PSA) and the Foreign Investments Act (FIA) widen the space for investment in companies that use cutting-edge technologies.

The government aims to convert at least half of all retail transactions to digital form and onboard 70 percent of Filipino adults to the formal financial system by 2023.