The rural banking industry has been an active advocate of financial inclusion in the country. It is through rural banks that the “unbanked and underbanked” have gained access to financial services. Despite geographical hindrances, they have persevered in reaching out to the poor market, through the full utilization of mobile banking, microfinance and micro insurance.

Although rural banks have been aggressive in pursuing markets even in the fifth- to sixth-class municipalities, Bangko Sentral ng Pilipinas (BSP) data show that there are around 1,634 cities and municipalities that remain unbanked. The central bank also noted that banking presence tends to be skewed to higher-income and more populated areas, considering the cost of setting up banking offices and operating such offices. The countryside is therefore challenged by limited financial services.

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