Internet-Connected Philippine Financial Services

The Philippine Space Agency (PhilSA), the Department of Science and Technology Advanced Science and Technology Institute (DOST-ASTI), and the Bangko Sentral ng Pilipinas (BSP) have begun testing satellite internet service in two rural banks in Batangas province.

“PhilSA and DOST-ASTI will process data to look at the network performance against the actual connectivity needs of the banks. Information from these reports will be utilised by BSP as we move this partnership forward,” says Ma. Victoria Gazmin-Basto, Officer-in-Charge, PhilSA Space Business Development Division.

The stated banks were previously recognised by the Department of Information and Communications Technology (DICT) as being in Geographically Isolated and Disadvantaged Areas (GIDAs), where the installation of new terrestrial networks to improve connectivity may be impractical.

The provision of technical assistance to BSP is consistent with PhilSA’s mandate of assisting other government agencies or departments, as well as the private sector, in carrying out their responsibilities using space science and technology applications and satellite data.

To collect data, a Weather and Performance Monitoring System (WPMS) equipment built by DOST-ASTI was placed up near the two banks. The WPMS includes a network performance monitoring device that is linked to the satellite internet user equipment installed at the banks.

Among other things, the device measures network metrics such as upload and download speeds, throughput, latency, and jitter. Furthermore, the WPMS includes weather stations that monitor meteorological parameters such as rain, temperature, humidity, and pressure at the same time. The obtained data will subsequently be analysed to investigate and evaluate the satellite internet service’s performance and reliability under local weather conditions.

According to Bryan Paler, Senior Science Research Specialist at DOST-ASTI, his agency encourages collaboration with PhilSA and BSP to demonstrate ASTI’s locally developed technologies in applications that benefit the Filipino people.

Aside from the WPMS, they are investigating how they may put other homegrown technologies to use, such as bridging the digital divide and promoting financial inclusion. DOST-ASTI intends to capitalise on the partnership’s benefits in the future by educating people about financial literacy.

The organisations intend to use the digital TV technology and internet infrastructure that they are constructing to teach people in the unserved and underserved areas about financial literacy in addition to doing research on the usefulness and efficiency of satellite internet services for banks. The Philippine government aims to provide rural areas with cutting-edge technology while also teaching residents how to use it for their own benefit. Out of the country’s 1,634 municipalities, 33% or 533, are still unbanked and do not have access to financial inclusion services.

The Philippines believes in satellite technology’s ability to improve connectivity in rural areas, hence increasing banks’ capacity to deliver digital financial services and encourage greater financial inclusion in unserved and underserved areas. Digital financial services such as remittances, bill payments, and opening transaction accounts, among others, would become more inclusive and accessible with improved connections in rural areas.

A Memorandum of Understanding (MoU) has been signed between PhilSA, DOST-ASTI, and BSP to encourage access to high-quality financial services enabled by internet connectivity. As transactions and services move to online platforms, this endeavour will increase digital inclusion.

Internet connectivity is recognised as a crucial enabler of financial and economic inclusion, as financial activities and services migrate to online platforms. As internet connection is increased, banks and other financial service providers will be able to better serve rural areas with additional internet-connected access points, such as automated teller machines and cash agent services.

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