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A quiet revolution is underway in the Philippines—one that promises to reshape how Filipinos manage their finances. This revolution is powered by fintech, where digital innovation meets financial inclusion.
According to a report from consumer credit service Digido, fintech adoption in the Philippines is set to skyrocket by over 72% this year alone.
“The growth is immense because money now is in the mobile phones of the people, including the unbanked, so they need to be part of it, part of that ecosystem, through fintech,” explained Michael Ricafort, Chief Economist at Rizal Commercial Banking Corporation (RCBC).
The recent Fintech Revolution Summit in Manila brought together leaders from the banking and finance sectors to discuss these transformative changes. Kosta Patson, Managing Director of EasyLodge, emphasized the importance of collaboration and innovation in driving these advancements, saying, “Unless we can be in a conference, and come together, and listen to things and listen to new ideas, unless we can essentially coral that, it’s almost impossible for us who have new technologies that can really help Filipinos.”
The summit highlighted staggering statistics: 92% of Filipinos have adopted cashless payments, and 84.5% regularly use mobile wallets, reflecting a massive shift in how financial transactions are carried out nationwide.
Ed Joson, Chief Product Officer of Tonik Digital Bank, spoke about the accessibility fintech offers: “It’s great that the penetration of mobile devices and Internet connectivity has really grown here in the Philippines… It’s about access. The big benefit there is that we as a bank can be accessible to customers anywhere, anytime, and through your device, through your phone.”
Meanwhile, Bismarck Orbe, from JG Summit Holdings, noted the significant rise in fintech adoption.
“Looking at the data now, we’ve increased the fintech adoption from 2019 to 2023 by around 50%. This is a very good sign that people are now seeing the benefits of fintech in their lives because the availability of these financial needs is right at their fingertips.”
According to Traicon, organizers of the summit, the Philippine fintech market has seen a robust growth of 224%, valuing the market at $11 billion. With projections suggesting it could reach $44 billion by this year, the industry is poised for even more significant expansion. Southeast Asia has emerged as a global digital asset hub, with the Philippines ranked as one of the top nations in the region. This growth highlights the region’s quick adoption of digital payment solutions and the transformative impact of fintech on everyday financial transactions.
This surge in fintech adoption marks a significant step toward financial inclusivity. Based on the insights I’ve gathered at the summit, digital innovation has provided Filipinos with greater opportunities for financial growth, while fintech tools have simplified access to banking services, particularly benefiting the unbanked. These developments signify a promising path towards enhanced financial inclusivity in the country.
Fintech is not just a buzzword but a catalyst for change in the Philippines, democratizing financial services and paving the way for a more inclusive economy. As the nation continues to embrace digital innovation, the future looks promising for every Filipino seeking financial empowerment.
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