If I were given a chance to give my advice to Governor Benjamin Diokno, I would advise making proper information dissemination regarding the plans and actions implemented by the BSP. In an interview, he said that there is no need for people to know about their plans and actions but instead wait for its effect on them. Information should be disseminated, hoping that the public will improve their knowledge and awareness and subsequently make better judgments in future situations. An informed public will understand the trade-offs and contribute meaningfully to plan, and have greater trust in them. For instance, the declining interest rate due to the pandemic. I believe that this is a good action to stimulate the economy. However, I am certain that not everyone knew about it. Maybe one reason is that the time of the live stream of the President is too late. Moreover, low earner citizens might have no time to re-watch because they do not have access to the internet or are busy finding ways to survive. The plan will be ineffective if not everyone knows it, or on the other hand, those who know this information will use it as an advantage against those who do not know about it.
Regarding the BSP and banking industry, given that many changes are being introduced in the new normal, as we are now towards to a cashless society wherein, the majority are now using e-money (E-money is a monetary value electronically stored inconvenient payment instruments that consumers can use to buy or pay for goods and services, to transfer or remit funds, and/or to withdraw funds. E-money instruments include cash cards, e-wallets accessible via mobile phones or other access devices, stored value cards, and other similar products.) I suggest not using the Data Privacy Act to protect the bank or non-bank institutions against the public's complaints, especially in terms of fraud and lack of security. For instance, a coworker of my mom had an incident with the GSIS. She was then informed that she had an outstanding loan balance; she was shocked at that time and had no idea where that loan came from, nor how did that happen, knowing loans will be granted if they had a fingerprint of her. I am certain that an insider accessed her account but protected the organization using the Data Privacy Act. Later, there are deposits in her account that came from different places.
Therefore, transparency is necessary. There should be an activity log for every account monitored by the bank, AMLC, and the owner to prevent any malicious act, fraud, and anomalies. Also, modus is now getting wiser and wiser. Therefore, the BSP and the bank or non-bank institution should always update and upgrade their program and security to prevent further unlawful activities.
In most developing countries, micro, small, and medium-sized enterprises (MSMEs) are important drivers of economic growth and key contributors to poverty reduction. MSMEs are often confronted with financial constraints relating to access to financial institutions, capital resources, and saving limitations. This results in liquidity problems, credit schemes that are unsuitable to the needs, administrative requirements, and interest rates. Also, this sector has been greatly affected due to the COVID-19 pandemic and the placement of lockdowns. With that, I propose to enhance Value Chain Finance (VCF). VCF seeks to help MSMEs in accessing finance. This will include the following: (a) Improve MSME's financial literacy and subsequently make better judgments in future situations. MSMEs' ability to manage financial issues is relative to their success. The higher the level of one’s financial literacy, the better his/her financial management would be. (b) Improving the credit condition by lowering the interest rate and collateral requirements. This encourages MSMEs to accept loans offered to them. Strengthening MSME's financial access will increase its product competitiveness in both the domestic and global markets.