THE ECONOMIC, SOCIETY, AND SUSTAINABLE DEVELOPMENT

BANNA AND ALAM’S CASE STUDY ON ECONOMIC SUSTAINABILITY

DIGITAL FINANCIAL
INCLUSION FROM EMERGING ASIA
PRESENTED BY:
JAMIE AQUINO
IRISH DIO
COBY NG
BEATRICE YULO
DIGITAL FINANCIAL INCLUSION
WHAT DOES IT MEAN?
It refers to remote and cashless financial
services through electronic devices benefiting
both providers and recipients, expanding
financial access and inclusion.

“It is a change agent that can bring revolutionary changes

in the global financial sector.“ (Ozili, 2018)
Implementing Digital Financial Services (DFS)
consequently leads toward achieving
Sustainable Development Goals (SDGs) by
2030. (Banna et al., 2020)

Examples:
Mobile Banking
FinTech Solutions
Digital Wallets
Blockchain Technology
According to the United Nations Conference on Trade and
Development (2023), an estimated $4 trillion dollars is required
in every developing country to address the investment gap.

INVESTMENT GAP
It is an instance wherein a country’s current level of savings is
insufficient to achieve an economic objective. (United Nations Economic
and Social Commission for Western Asia, n.d.)
WHAT TO EXPECT?
The paper will explore DFI's role in Asian
banking stability and sustainable
development in Malaysia, Pakistan,
Indonesia, China, Thailand, India, and
the Philippines.
 CHALLENGES
1 Cybersecurity Risks

2 Data Privacy Concerns

3 Exclusion of Marginalized Sectors

4 Lack of Digital Financial Literacy

5 Lack of Bank Cooperation

 CHALLENGES
Cybersecurity Risks Data Privacy Concerns
Cloning of ATM cards, debit, and Potential misuse of the vast
credit cards; hacking; and other amount of personal and
technological threats. financial data.

“Data Breach” “Who has access to it?”

 CHALLENGES
Exclusion of Marginalized Sectors Lack of Digital Financial Literacy
Poor and elderly people face digital Not everyone has access to up-to
exclusion, making them unbanked date technology and uninterrupted
due to their perceived risk by internet connection.
financial service providers.
The digital space is often perceived
Informal sector businesses, are as risky, that is rampant with
often denied access to financial financial fraud.
services due to their informal
nature.
CHALLENGES
Lack of Bank Cooperation
Hesitation due to cost considerations
Banks may be reluctant to participate
if expenses exceed benefits.
 RESPONSE
Z-SCORE AND SHARPE RATIO
Return on assets, equity ratios, and returns on equity.

DFI INDICATORS
Outreach and digital service usage metrics.

BANK-SPECIFIC FACTORS
Size, risk, provisions, and ratios, along with
macroeconomic elements like inflation and good
governance
 RECOMMENDATIONS
Digital Financial Literacy
Access to electronic devices with up-
to-date technology and applications
relevant to DFI
Uninterrupted internet connectivity
Campaigns, seminars, and workshops
Access for the Unbanked
Particularly in rural areas
Review and lower minimum deposit
requirements
Remote account opening
Awareness of digital finance benefits
 RECOMMENDATIONS
Timely Digital Financial Services Enhanced Security Measures
Example: FinTech
Threats like card cloning and
Enhance banking stability and
hacking.
efficiency
Secure money withdrawal facilities
Save more, leading to sustainable
using QR codes
economic growth.
 RECOMMENDATIONS
Technical Expertise
Uninterrupted and reliable digital
financial services
Broader adoption of DFI
Effective Regulation
Adopt innovative and proven policies
Ensure the success and integrity of
DFI initiatives
DIGITAL FINANCIAL INCLUSION (DFI) IN THE PHILIPPINES
DFI is transforming the financial landscape globally and
in the Philippines.
The Bangko Sentral ng Pilipinas (BSP) actively promotes
financial inclusion.
The Philippines has made significant progress in
expanding financial access, with more Filipinos gaining
access to bank accounts and digital financial services
(World Bank, 2023).
 CHALLENGES IN THE PHILIPPINE DFI LANDSCAPE
Challenges include cybersecurity risks, data privacy
concerns, marginalized sector exclusion, and lack of
digital financial literacy.
Some banks resist financial inclusion programs.
High crime rate poses risks, as highlighted by the 2022
hacking incident. (Rivas, 2022)
 THE FUTURE OF DFI IN THE PHILIPPINES
DFI’s positive impact on bank stability and economic
development is evident.
The Philippines actively addresses challenges and
works to make DFI accessible to all.
The Philippine financial landscape relies on DFI,
ensuring stability and sustainability, and requires
strong cybersecurity and regulations to fight financial
crimes.
THANK YOU
 REFERENCES
Agcaoili, L. (2022, August 28). BSP pushes the development of inclusive digital payments.
Philippine Star. https://www.philstar.com/business/2022/08/28/2205585/bsp-pushes-
development-inclusive-digital-payments
Aiswarya, P. M. (2023, April 24). What is Digital Finance? Examples and Benefits. IndustryWired.
https://industrywired.com/what-is-digital-finance-examples-and-benefits/
Alam, M. R. & Banna, H. (2021). Is Digital Financial Inclusion Good For Bank Stability and
Sustainable Economic Development? Evidence From Emerging Asia. Asian Development Bank
Institute. https://www.adb.org/sites/default/files/publication/692471/adbi-wp1242.pdf
Anakpo, G., Xhate, Z., & Mishi, S. (2023). The policies, practices and challenges of digital financial
inclusion for sustainable development: The case of developing economy. Advances in Investment
for Sustainable Development, 2(2), 327-343. https://doi.org/10.20944/preprints202305.1415.v1
Rivas, R. (2022, January 21). 5 arrested over BDO hacking incident – NBI. Rappler.
https://www.rappler.com/business/bdo-hackers-arrested-nbi/
The World Bank. (n.d.). The World Bank in the Philippines.
https://www.worldbank.org/en/country/philippines/overview
 REFERENCES
United Nations Conference on Trade and Development. (2023, July 10). How to narrow the
investment gap for global goals. https://unctad.org/news/how-narrow-investment-gap-
global-goals
United Nations Economic and Social Commission for Western Asia. (n.d.). Investment Savings
Gap. https://archive.unescwa.org/investment-savings-gap