Philippines Senator Calls for Simpler Access to Financial Services Beyond Fee Cuts

The Call for Structural Reform

A Philippine senator has challenged the country's financial sector to dismantle structural barriers preventing millions from entering the formal banking system, arguing that true inclusion extends far beyond waiving transaction fees.

Sen. Erwin Tulfo said meaningful access means every Filipino can use financial services "safely, easily and with confidence," regardless of income, location, age, or digital literacy. The statement shifts focus from cost-based metrics toward usability and accessibility, a distinction that could reshape how regulators and institutions measure progress in one of Southeast Asia's most underbanked markets.

The Philippines recorded a 56 percent financial inclusion rate in 2025, according to Bangko Sentral ng Pilipinas data, leaving roughly 50 million adults without formal banking relationships. While digital wallets and mobile banking have grown rapidly, adoption remains uneven across rural areas and older demographics.

Barriers Beyond Cost

Tulfo identified several obstacles that discourage participation: account-opening requirements, minimum maintaining balances, ATM withdrawal fees, dormancy penalties, and opaque processes for seeking help. These frictions, he argued, matter more to low-income users than the headline cost of transactions.

"Not everyone has the disposable income to set aside a significant portion of their day-to-day budget in order to first open an account, then keep that money fully deposited so as to avoid penalties," Tulfo said.

Minimum balance requirements at traditional banks typically range from 2,000 to 10,000 pesos, sums that represent several days of earnings for many Filipinos. Dormancy fees and ATM charges compound the cost of maintaining an account with small or irregular deposits, effectively penalizing the users inclusion programs aim to serve.

The senator called for an ecosystem where digital banks, traditional lenders, e-wallet providers, fintech firms, telecommunications companies, and regulators work in concert to reduce friction rather than impose it.

Design for First-Time Users

Tulfo emphasized the need for simpler interfaces, clearer instructions, and better support for first-time users navigating digital financial services. Financial and digital literacy programs, he said, must accompany product rollouts, particularly for market vendors, farmers, workers, senior citizens, and small entrepreneurs who may lack prior exposure to formal banking.

Bangko Sentral ng Pilipinas has promoted financial inclusion through basic deposit accounts with reduced documentation, digital payment infrastructure, and innovation sandboxes for fintech startups. Yet Tulfo argued these policies must translate into tangible improvements in daily user experience, not just regulatory compliance.

The central bank launched its Digital Payments Transformation Roadmap in 2020, targeting 50 percent of retail transactions to be digital by 2023 and 70 percent by 2025. Transaction volumes have grown, but adoption gaps persist among rural and elderly populations, where cash remains dominant.

Measuring What Matters

Tulfo proposed reframing success metrics. Instead of counting new accounts or transaction volumes, he suggested asking whether more Filipinos can save, receive payments, send remittances, borrow responsibly, obtain insurance, and manage finances because services have become genuinely accessible.

"The measure of success should not only be how many accounts have been opened or how many digital transactions have been made," he said. The bigger question, he added, is whether the financial system serves people who previously had no practical access to it.

The senator clarified that his vision involves "zero unnecessary barriers" rather than zero fees, acknowledging that sustainable business models require revenue. The distinction matters in a market where free basic accounts and zero-fee promotions have proliferated, yet structural obstacles remain unaddressed.

Regional Context

The push for accessible financial services comes as Southeast Asian governments and central banks intensify efforts to digitize payments and expand banking coverage. Indonesia, Vietnam, and Thailand have launched similar initiatives, often leveraging mobile network reach and digital identity infrastructure to bypass traditional branch requirements.

The Philippines benefits from high mobile penetration, with over 150 million active SIM cards in a population of 115 million, and a competitive fintech sector that includes GCash, Maya, and digital banks such as GoTyme and Tonik. Yet geographic fragmentation across more than 7,000 islands and persistent income inequality complicate last-mile access.

Tulfo's remarks suggest that regulatory and industry attention may shift toward user experience design, customer education, and interoperability, complementing existing efforts around digital infrastructure and transaction cost reduction. Whether financial institutions respond with product redesigns or incremental adjustments will shape the Philippines' trajectory toward broader inclusion in the years ahead.