Based on the explanation of the Bangko Sentral ng Pilipinas, there is “financial inclusion” when everyone is able to effectively use financial products and services such as credit, savings, payments and insurance to their benefit. Such products and services must be suitably crafted, of respectable quality and be of value to the person accessing them.
Globally, substantial advancement has been made toward financial inclusion. According to the 2014 Global Findex Database of the World Bank, unbanked people worldwide decreased by 20 percent from 2.5 billion in 2011 to two billion in 2014. The percentage of banked adults (these are adults with a bank account, or of other types of financial institution, or a mobile money provider) all over the world rose to 62 percent (up from 51 percent in 2011). The data also showed that 94 percent of adults in the developed world are banked, while in the developing world only 54 percent have money saved in the bank.
In the Philippines, people are starting to recognize and appreciate the conscientious efforts of the BSP to implement initiatives that would demonstrate the gains of financial inclusion. We are actually lucky because the BSP is the first central bank in the world to launch a division that is committed and dedicated to financial inclusion. That is because the BSP management believes that financial inclusion is a worthy policy objective that needs to be pursued, alongside the endorsement of stability and efficiency in the financial system.
Thus, in adherence with the efforts of the BSP, there really is an urgent need for a collective and individual effort of government institutions, NGOs, business entities, and the general public to step up inclusive finance as a method of alleviating poverty. Filipinos at the bottom group need far more than access to financial services. They need both effective access and use of these services.
The Cooperative Bank of Negros Oriental is composed of 42 active primary and secondary cooperative member-investors, now on its 24th year of banking operations, is helping government in addressing social injustice and promoting inclusive growth in the country. For 24 years, the Cooperative Bank has continued to extend its reach to the untapped, underserved, the unbanked, and marginalized sector of society.
Last June 24, the bank conducted its 24th annual general assembly at its new head office at Libertad St. in Dumaguete. Participated in by coop member-investors, the officers, management and staff of the bank, including those from its two branch offices in Bayawan and Tanjay Cities, the assembly had its theme Inclusive Growth through Good Governance, Risk Management and Compliance. The keynote speaker was Edward Chiong Du, president of the multi-awarded Negros Oriental Chamber of Commerce & Industry.
Words are not enough to express our heartfelt gratitude to Ed Du for gladly accepting our invitation in lieu of Sen. Miguel Zubiri, chairman of the Senate Committee on Cooperatives. Upon learning a day before the assembly that Senator Zubiri could not come, I immediately called up Mr. Du in the afternoon of June 23, and without hesitation despite the short notice, he accepted our verbal invitation. He spoke very eloquently that is straight from his heart his practical view on the theme. Hats off to you, Mr. Du! You were absolutely superb.
Informal fund sources
Philippine banks reach just a small number of Filipinos, specifically in the countryside. For most Filipinos, the idea of saving money in the bank is just a far-out idea considering that they have so little for their daily needs. Another reason is their inability to get to these banks as these are very far from them. Third, the policies and rules of the banks are too intimidating for average Filipinos.
The banks’ failure to serve a broader market exposes many Filipinos to loan sharks (such as the Hindus’ 5-6) that charge exhorbitant interest rates. For example, you borrow P5,000, you pay the amount with a 20 percent interest or a total of P6,000.
Many also fall victim to numerous Ponzi schemes due to lack of education. If banks cannot provide the necessary services that a huge market of Filipinos out there need, some unscrupulous money-making businessmen will.
In present day Philippines, under the administration of President Duterte, there is no way that financial inclusion can be effective and successful if government cannot build farm-to-market roads, irrigation systems, post-harvest facilities and all the support infrastructures that farmers and fisher folks, as they comprise 75 percent of the poor.
Likewise, there is no way financial inclusion can be achieved unless the State spends more on improving the quality of public education, health services and public utilities (especially potable water) in the rural areas.
However, there is nothing much to worry about as the Cooperative Bank of Negros Oriental is keeping pace with the latest trends and requisites of survival in the banking system.
As public trust and confidence in the bank has continued to grow, made manifest in the increasing volume of transactions, testimonies of quality service, and increasing demand for its products and services.
The bank also takes on the responsibility of extending assistance toward the development of small coop member-investors through hosting and sponsorship of required and relevant trainings.
The Cooperative Bank of Negros Oriental has gradually made a distinct name for itself in the locality. It has improved its public information about its operations and presence in the community. The bank will continue to work hard, seek innovations to further enhance and improve its performance for inclusive economic growth, ensuring its stability, viability, and sustainability in the years ahead.
Kudos to the Cooperative Bank of Negros Oriental, and to the newly-re-elected directors: Philippine Federation of Credit Cooperatives national chairperson Atty. Gloria Futalan (51 votes) and SU Coop director Dr. Chona Fontelo-Javier (48 votes). My gratitude also for re-electing me as CBNO director (52 votes), representing the Dumaguete Cathedral Credit Cooperative as chairman.
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Author’s email: wea_129@yahoo.com
