The World Bank has given the green light for a $600 million financing for the Philippines, intended to bolster a series of reforms aimed at accelerating digitalization.
The Philippines’ First Digital Transformation Development Policy Loan (DPL) aims to promote the digital transformation of government and digital infrastructure policies, expand financial inclusion through digital finance, and stimulate the growth of digital services.
Ndiamé Diop, World Bank country director, highlighted the potential of this initiative, saying, “Greater adoption of digital technology can improve the efficiency and transparency of government services, empowering individuals who were previously far away from decision-making centers. Digitalization can also drive productivity growth by reducing operating costs for firms and enhancing their resilience and preparedness for future crises.”
To extend financial inclusion more widely among individuals and businesses, this DPL will support reforms that promote broader acceptance of digital payments, strengthen trust in digital financial services, and enhance competition in digital financial infrastructure.
These reforms will help the authorities expand the reach of digital financial services to underserved and unbanked segments of the population, including women, and facilitate the transition from a predominantly cash-based economy to a digital one.
To boost business growth in digital services, this DPL will also support reforms that promote the uptake of e-commerce by consumers and businesses and promote competition in digital services markets.