Spotlight on digital shift, DT's advocacy

Spotlight on digital shift, DT's advocacy | Daily Tribune

FAST-TRACK AND STRENGTHEN

Despite having more than 73 million internet users, the country is behind in terms of digital adoption, particularly in e-commerce, compared to its neighboring nations.

Thus, e-commerce only contributes 0.5 percent of sales out of the country’s total retail sales volume, even though about 20 percent of the gross domestic product (GDP) originates from retail trading.

The digital divide has affected everyday consumers and retailers, and it also made a significant difference in how students were able to access educational materials when public and private school systems shifted to distance learning.

DAILY TRIBUNE knows much of the world has embraced the digital revolution, making it a must to fast-track and strengthen the adoption of digital solutions.

Otherwise, the country risks getting left behind.

Some of the strategies needed to bridge the digital divide are increasing investments in digital infrastructure -- a significant step in making the internet and the use of smart devices inclusive.

In many areas outside of major cities in the Philippines, mobile network signals remain spotty. The communities living in these locations will need improved infrastructure so that they can consider digital solutions as practical options.

Businesses are playing catch-up. For instance, Unity Digital Infrastructure, Inc., a tower company that is a joint venture of Aboitiz InfraCapital and Switzerland-based Partners Group, is boosting broadband capabilities by constructing common towers where the facilities are needed the most.

Common towers mobile network operators fast-track expansion at reduced costs, thereby enabling communities that were once outside their areas of coverage to access data and communications services at reasonable rates.

What it means is that the internet will soon cover even the far reaches of the nation, making digital services universal.

Telecommunication companies are also deploying infrastructure for 5G services that will allow users to access larger quantities of data at higher speeds.

Electronic commerce, despite its still small share in the total trade in the country, is expected to boom, but it needs a majority of the population to have a bank account.

Based on the Financial Inclusion Survey conducted by Banko Sentral ng Pilipinas, more than 60 million people or a total of 65 percent of the adult population are unbanked.

Lack of funds, no urgent need for an account and not having the required documents to comply with bank requirements were cited by respondents who did not have a bank account.

Several banks have taken steps to address the situation by offering low-maintenance accounts and simplifying requirements for account applications.

Many banks have also made inroads in improving online services, including account applications. At the same time, digital wallet apps have taken over some functions of banks to advance financial inclusion.