Senator Risa Hontiveros is pushing to conduct a probe into the recent scams, unauthorized transactions, and other irregularities involving mobile financial services and applications.
On Thursday, the Senate announced that Hontiveros filed Senate Resolution No. 1234. Under the filed resolution, the Senate is required to review the existing rules and regulations concerning the financial technology (fintech) sector. According to the Senator, there is currently no legislative framework in place to ensure important aspects like stability and transparency, building public trust, and promoting inclusion in the said service.
Additionally, Hontiveros acknowledged how mobile financial services have become a part of almost every Filipino’s daily life. Through that, the fintech sector became an important driver of economic growth and financial inclusion. She cited GCash as one of the more successful options for locals, with millions of users who posted Php 6 trillion worth of transactions in 2022.
Hontiveros stressed that the said amount is almost equal to the national budget next year.
"Napakarami ang nakikinabang sa mobile financial services, lalo na yung mga "unbanked" o walang kakayahan na magbukas ng account sa bangko. Kailangan natin ng batas na poprotekta sa kapakanan ng bawat Pilipino na gumagamit ng digital wallets, lalo na kung may scam, hacking o ibang regularidad," she said.
The resolution filing was prompted by the recent incident with the leading mobile financial service provider, GCash. In recent days, several users had their money transferred to unknown phone numbers.
According to GCash operator G-Xchange Inc., the errors were a result of an “ongoing system reconciliation process.”
However, incidents like that are not new to the mobile financial service, as Hontiveros noted that similar incidents occurred in 2023. In the said year, multiple accounts were also compromised using phishing attacks that were staged through some online gambling platforms.
"The list of risks and complications which threaten the earnings of mobile financial service users grows longer everyday. We urgently need upgraded policies to ensure that mobile financial service providers and fintech firms observe the necessary level of care and accountability in handling digital transactions," Hontiveros stressed.
"Kailangan natin aksyunan ang daing ng mga kababayan nating biktima ng scam o hacking sa mobile financial services, na tila walang mahingan ng tulong sa pagbawi ng natangay nilang pera. We must implement a system that enhances regulatory oversight over the fintech sector, so Filipinos can trust that their hard-earned money is safe - even online," Hontiveros ended.
