Cheaper transaction fees and easier access to services remain critical to pulling more citizens into the formal financial system, Bangko Sentral ng Pilipinas (BSP) says, according to Philstar Global.

The drive reflects a broader regional challenge across Southeast Asia. Despite surging mobile device ownership, millions of consumers stay unbanked or underbanked due to steep processing fees, documentation hurdles and poor internet infrastructure.

Account ownership and digital payment growth alone do not equal effective financial inclusion, the central bank said. Surveys show high transaction costs are a primary reason many Filipinos avoid digital payment options.

Lowering fees encourages more frequent use of digital payments. Because electronic transactions are the most common financial service, they serve as the main entry point to savings, credit, investments and insurance.

Fee cuts alone will not fix the problem. Complex account requirements, maintaining balance rules, connectivity gaps, limited physical access, low digital literacy and a lack of consumer trust still keep people out of the formal sector.

To remove these barriers, the central bank is expanding basic deposit accounts that require an opening deposit of PHP100 ($1.72) or less, with no maintaining balance or dormancy fees. It is also pushing for interconnected digital payment networks that allow seamless transfers between different banks and e-wallets.

The central bank operates programmes like the BSP E-Learning Academy to build financial literacy and has updated consumer protection rules. Pushing for more competition among lenders, e-wallets and fintech firms will lower costs further and improve service quality.

Financial health remains the ultimate measure of success, the regulator said. The end goal is ensuring financial tools help households manage daily expenses, accumulate savings, secure credit and survive economic shocks.