Financial Services

Program implementation for 2020 were put on hold. Before COVID-19, the implementation of programs and projects targeted for 2020 were on schedule. These activities were put on hold when the ECQ was implemented last March 2020.

MSMEs need to migrate online to adjust to changes in product priorities and consumer

preferences. Restrictions on the movement of people and business operations in response to the outbreak of Covid-19 are changing the way people are consuming and paying for goods and services. Adherence to social-distancing measures is increasing demand for electronic payment (e-payment) for services such as food delivery and utilities, especially as physical money has been identified as a vehicle for the spread of viruses and bacteria.

There are technological challenges as well, such as the increased demand for health-related technologies and innovations and those related to increasing the shelf-life of food products. Even as consumers are changing their behaviors and flocking online, small businesses likewise need to migrate online if they are to keep afloat. Interventions should be provided in allowing small businesses to ease themselves into the digital world while helping them adjust to and overcome the challenges of digitalization. Among others, these measures will aid MSMEs in engaging with customers, managing transactions from safe distances as well as delivering goods and services efficiently, hence allowing them to tap into new revenue streams and address various pain points including cost reduction.

Science and technology innovations were developed to mitigate COVID-19 impact. The UPNIH/DOST COVID-19 test kits, RxBox, FASSSTER, TANOD COVID and other contract tracing applications have helped mitigate the debilitating impacts of COVID-19 and other possible societal problems in the future.

Financial Services Financial and banking processes are also hampered on the onset of the particularly on the delivery of essential services of banks such as deposits and withdrawals, processing of bank loans, and other monetary transactions and financial services for the public. Some challenges the banking industry need to address during the pandemic are the following:

Increased cash withdrawals by banks. Due to high demand for cash from various stakeholders, there was a sudden increase of cash withdrawals by banks from the Bangko Sentral ng Pilipinas (BSP). A huge amount of withdrawal was accounted to the government banks in order to implement the government financial assistance programs.

Safety threats and digital risks for banks. Various risks during the period of pandemic was also noted by BSP. There is the probability of contamination of bank cash that are rolled in the market. The possibility of local transmission of COVID-19 also puts the health and safety of bank personnel and clients at high risk. Probable digital risk in the banking industry is also inevitable due to the proliferation of COVID-19 pandemic-themed malicious websites, phishing and digital fraud that may compromise bank data information and privacy of depositors.