Recognizing the pivotal role young Filipinos play in the nation’s economic future, the Financial Inclusion Steering Committee (FISC), with support from the Bangko Sentral ng Pilipinas (BSP), launched the Youth Financial Inclusion (YFI) Initiative on January 20, 2025.
This ambitious program aims to dramatically increase youth account ownership and empower them as active drivers of financial inclusion, innovation, and economic growth.
The Philippines is betting on its youth
“With the YFI Initiative, we are inviting the Filipino youth to innovate and dream big, not just for themselves but for the country,” declared BSP Deputy Governor Bernadette Romulo-Puyat, highlighting the program’s significance.
The initiative aligns with the National Strategy for Financial Inclusion (NSFI) 2022-2028, underscoring the potential of young people to shape the financial landscape.
The YFI Initiative takes a two-pronged approach. The YFI Ambassadors Program will train young Filipinos to become champions of financial inclusion within their communities. These young leaders will develop and implement local action plans to promote financial literacy and improve financial health, acting as catalysts for change.
Simultaneously, the YFI Hackathon will challenge young innovators to develop community-based solutions to the persistent challenges of financial inclusion. This competition will serve as a crucible for creativity, generating fresh ideas and technological advancements to broaden access to financial services. Winning ideas have the potential to be implemented, creating real-world impact.
Both the YFI Ambassadors Program and the YFI Hackathon will culminate in the Youth Congress, a major event scheduled for the second quarter of 2025. This congress will bring together young participants, industry leaders, and policymakers to share insights, celebrate achievements, and chart the future of youth financial inclusion in the Philippines.
The initiative has garnered significant support from key government agencies, including the National Youth Commission (NYC) and the Presidential Communications Office (PCO).
NYC Chairperson Jeff Ortega emphasized the program’s transformative potential, stating, “Through the YFI Initiative, young Filipinos can equip themselves with the right financial knowledge and skills needed to not only transform their own lives, but also play a vital role in building a stronger Philippines.”
Echoing this sentiment, Krizia Casey Avejar, representing the PCO, added, “Let us work together to inspire a generation of financially aware and resilient Filipinos.” This nationwide push for youth financial inclusion is particularly crucial given the existing financial landscape.
Bridging the financial inclusion gap
As Gov. Dax Cua, President of the Union of Local Authorities of the Philippines (ULAP), emphasized at the OJK Financial Inclusion Seminar in Jakarta recently, bridging the financial inclusion gap between the rural and urban areas requires a multi-faceted approach encompassing technology, collaboration, and infrastructure development.
While the Philippines boasts a rapidly advancing digital financial services sector and high mobile phone penetration, significant challenges remain.
In its Digital Financial Inclusion report, ULAP emphasized the critical need for enhanced connectivity throughout the nation. Despite the rise of fintech companies and initiatives like the Paleng-QR Ph program, a significant portion of the population, particularly in rural areas, lacks reliable internet access. This digital divide directly correlates with limited access to financial institutions and services.
ULAP advocates for proactive government investment in essential infrastructure, including high-speed internet networks and robust cybersecurity measures, to ensure ubiquitous connectivity and empower all Filipinos to benefit from digital financial services. Initiatives like the free Wi-Fi project in Quirino province also demonstrate the potential of improved internet infrastructure to support both local economies and access to digital marketplaces.
Beyond infrastructure, addressing the demand side is equally important. Surveys reveal a need for strengthened financial literacy among Filipinos. Limited understanding of financial principles and products can hinder adoption of digital financial services.
Therefore, alongside improving access, robust financial education initiatives are crucial to empower individuals to effectively utilize these services. The YFI Initiative’s focus on financial literacy and community-based solutions directly addresses this need.
Technology use to leapfrog traditional banking models
The Philippines is embracing a technologically driven approach to accelerate financial inclusion, leapfrogging traditional banking models and reaching underserved communities.
Recognizing the unique challenges of an archipelagic nation, the country is prioritizing innovative solutions like satellite-driven internet connectivity to bridge the digital divide and bring financial services to even the most remote areas.
This technological leap is further reinforced by the BSP and its Financial Inclusion Steering Committee (FISC), which recently unveiled a new digital platform designed to connect banking institutions with these underserved communities.
The launch of the FISC website, a centralized hub for financial inclusion resources, empowers the Philippine banking industry to extend its reach and contribute to a more inclusive economy, directly supporting the country’s financial inclusion targets. This comprehensive strategy marks a significant step towards empowering all Filipinos with accessible financial tools and services.
At the heart of this national push is the Youth Financial Inclusion (YFI) Initiative. This program, combined with ongoing efforts to improve connectivity and financial literacy, represents a holistic approach to empower a generation of financially capable Filipinos and build a stronger, more inclusive economy.
The YFI Initiative is more than just boosting account ownership; it’s about fostering financial education, strengthening consumer protection, and providing regulatory support for youth financial inclusion.
Crucially, it prioritizes collaboration among a broad range of stakeholders — from financial regulators and service providers to youth groups, students, and educators — ensuring that the YFI Initiative is not a top-down mandate but a grassroots movement driven by the collective efforts of the entire community.
This collaborative ecosystem, coupled with technological advancements and a focus on financial literacy, represents a powerful investment in the future of the Philippines, not just for individual young people, but for the nation as a whole.