I am pleased to inform my readers that Laban Konsyumer Inc. will be assisting in strengthening a safe, secure and sustainable digital or e-wallet economy, both in the national and global forum. Our consumer group participated and submitted our recommendations in the stakeholders’ consultations held over the past 3 months on the National Strategy for Financial Inclusion and the Fair Digital Finance Accelerator Network programmes.
In the national forum, the Bangko Sentral ng Pilipinas will launch the 2022 -2028 National Strategy for Financial Inclusion (NSFI) where one of the desired outcomes is more empowered consumers through strengthening financial education and consumer protection.
There will be Working Groups where consumer organizations are identified as proposed members. The various initiatives of the Working Groups include the development and implementation of a common framework for an effective, consistent and sustainable delivery of financial literacy program, institutionalization of an annual stakeholder conference to sustain a consistent adoption of the common framework, development of an online platform for financial literacy training ,provision of support for the immediate passage of the financial consumer protection bill, strengthening of the training of the financial regulators, the banking institutions as well those engaged in cyber crime monitoring and enforcement and creation of a communication program to disseminate information to the consumers.
The inclusion of consumer organizations in the NSFI working groups is well aligned to the strategic objective of the ASEAN to encourage the synergy and interaction of consumer organizations and the regulators towards the desired result.
On the proposed law, our consumer group manifested that the 18th Congress should enact into law the Financial Consumer Protection Bill. In our position paper, Laban Konsyumer Inc. said that the Bill will transform the Bangko Sentral Ng Pilipinas into a banking regulatory agency that adjudicates, accepts, evaluates and resolves consumer complaints.
In my experience in complaints handling and resolution, the BSP merely accepts and acknowledges complaints and then endorses the same to the concerned banks for appropriate action. The consumers have to wait longer with the concerned bank for action on the complaint.
Passage of the bill will clear the legal hurdle on BSP's alleged limitation of powers under the Consumer Act, whose relevant provisions on credit transactions are to be repealed.
The bill will also enable the BSP and the banking industry to develop reasonable guidelines and timelines in complaints handling and resolution including an online portal for dispute resolution.
The lower house version had passed the bill on 3rd reading. Stiff penalties are provided in the bill including imprisonment for those engaged in cyber crime activities. With the Senate passage of the Bill , the regulatory agencies will obtain appropriate skills training in cyber crime investigation and enforcement as provided in this bill.
A new set of bills has been filed on the criminal investigation and prosecution of cyber criminals. The e-wallet and bank account regulation bills punish phishing and money mules as a form of economic sabotage and penalizes with hefty fines and imprisonment. These bills fill the void in the laws after the Mark Nagoyo heist.
In the global forum, the Consumers International invited Laban Konsyumer Inc., which we accepted, to join the Fair Digital Finance Accelerator Network, the first global community of consumer advocacy organisations working together to advance fair digital finance.
The Fair Digital Finance Accelerator is a three-year project by Consumers International. Through research, tailored training, on-demand advice and guidance, the project will support consumer advocates in low- and middle-income countries to develop expertise and build connections with digital finance regulators and providers to increase the presence of consumer-centred policy.
By becoming a member of the Fair Digital Finance Accelerator Network, Laban Konsyumer Inc. will join a community of consumer experts committed to shaping the future of digital finance and strengthening consumer rights for people everywhere.
The project has three outcomes:
1, increase participation of consumer associations in the digital financial services’ regulatory environment.
2. Elevate and provide greater respect for the voice of consumer associations in the regulatory environment, and
3. Demonstrate greater support to consumer protection and empowerment activities from the digital financial services regulators and providers.
The project will develop nine training modules focusing on issues on digital financial services and mapping regulatory gaps. A train the trainer program will enable consumer associations to multiply access of more consumer associations to the project.
Both the NSFI and the FDFA programs will open new opportunities to consumer associations like Laban Konsyumer Inc. to actively engage and contribute in empowering consumers in the digital or e- wallet economy.
Atty. Vic Dimagiba, AB, LLB, LLM
President Laban Konsyumer Inc.
Email at [email protected]