The Netherlands’ Queen Máxima who also serves as the United Nations (UN) secretary-general’s special advocate for inclusive finance on Thursday advised the government and businesses to make the internet more affordable so more Filipinos can avail of various banking services.

“We’ve seen that costs of connectivity are still very high and the quality of connectivity is not very good,” she said during a media briefing with Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr.

Queen Máxima observed these during her second visit to the Philippines from 21 to 23 May, which included talks with a sari-sari store owner and fisherfolk in Rizal province.

The BSP promotes financial inclusion through the use of mobile apps, e-wallets, and other online banking tools that offer cheaper services than traditional banks.

Among the most expensive

However, the World Bank says the Philippines is still among those with the most expensive mobile internet in Southeast Asia at two percent of gross national income per person.

This is higher than Singapore’s 0.2 percent, Brunei’s 0.3 percent, and Vietnam’s 0.4 percent.

In terms of internet speed, the Philippines also ranks lower, with a median download speed of 28 Mbps compared with Singapore’s 95 Mbps and Brunei’s 74 Mbps.

“We need to make a lot of investments in connectivity through the private sector. That’s how we’re going to make digital payments also more affordable,” Queen Máxima said.

However, she recognized that more Filipinos now own bank accounts based on BSP’s data showing 56 percent of adult Filipinos already have accounts in 2021 from 17 percent in 2015.

The BSP aims to increase this to over 70 percent this year.

More competition

She stressed that digital banking services are especially important for rural residents and entrepreneurs.

“Digital payments alone is not financial inclusion. A lot of micro, small and medium enterprises do not have access to credit to make their investments and there’s little access to insurance,” Queen Máxima said.

To make financial services more affordable, she added the government must allow more industry players.

“If there’s no competition, there’s no innovation. We need innovation to develop types of insurance and credit,” she said.