{"id":689,"date":"2023-11-14T14:37:47","date_gmt":"2023-11-14T06:37:47","guid":{"rendered":"http:\/\/hearthstone.group\/?p=689"},"modified":"2023-11-14T14:42:06","modified_gmt":"2023-11-14T06:42:06","slug":"fintechs-key-roles-in-achieving-financial-inclusion","status":"publish","type":"post","link":"http:\/\/hearthstone.group\/?p=689","title":{"rendered":"Fintech\u2019s key roles in achieving Financial Inclusion"},"content":{"rendered":"\n<p>SEP 6, 2021 \/ originally published in\u00a0<a href=\"https:\/\/www.bworldonline.com\/fintechs-key-roles-in-achieving-financial-inclusion\/\" target=\"_blank\" rel=\"noreferrer noopener\">Business World<\/a><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1808\" height=\"558\" src=\"http:\/\/hearthstone.group\/wp-content\/uploads\/2023\/11\/fintech.jpg\" alt=\"\" class=\"wp-image-690\"\/><\/figure>\n\n\n\n<p> <style>@font-face {font-family:\"Cambria Math\"; panose-1:2 4 5 3 5 4 6 3 2 4; mso-font-charset:0; mso-generic-font-family:roman; mso-font-pitch:variable; mso-font-signature:-536870145 1107305727 0 0 415 0;}@font-face {font-family:Calibri; panose-1:2 15 5 2 2 2 4 3 2 4; mso-font-charset:0; mso-generic-font-family:swiss; mso-font-pitch:variable; mso-font-signature:-536858881 -1073732485 9 0 511 0;}p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-unhide:no; mso-style-qformat:yes; mso-style-parent:\"\"; margin-top:0cm; margin-right:0cm; margin-bottom:8.0pt; margin-left:0cm; line-height:107%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:\"Calibri\",sans-serif; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:Calibri; mso-fareast-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:\"Times New Roman\"; mso-bidi-theme-font:minor-bidi; mso-ansi-language:EN-US; mso-fareast-language:EN-US;}.MsoChpDefault {mso-style-type:export-only; mso-default-props:yes; font-size:11.0pt; mso-ansi-font-size:11.0pt; mso-bidi-font-size:11.0pt; font-family:\"Calibri\",sans-serif; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-fareast-font-family:Calibri; mso-fareast-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:\"Times New Roman\"; mso-bidi-theme-font:minor-bidi; mso-font-kerning:0pt; mso-ligatures:none; mso-ansi-language:EN-US; mso-fareast-language:EN-US;}.MsoPapDefault {mso-style-type:export-only; margin-bottom:8.0pt; line-height:107%;}div.WordSection1 {page:WordSection1;}<\/style><p class=\"MsoNormal\"><span lang=\"EN-US\" style=\"mso-bidi-font-weight:bold\">One of the most notable shifts seen during the coronavirus disease 2019 (COVID-19) pandemic is the growing use of digital payments. Although cash and coins are still used, electronic wallets and digital services were further appreciated for the conveniences they provide.<\/span><\/p><p class=\"MsoNormal\"><span lang=\"EN-US\" style=\"mso-bidi-font-weight:bold\">This shift was highly driven by a bigger one that the pandemic caused to accelerate \u2014 digitalization. In particular, financial technology or fintech has played a much bigger role in connecting consumers with banks, merchants, and other financial services providers.<\/span><\/p><p class=\"MsoNormal\"><span lang=\"EN-US\" style=\"mso-bidi-font-weight:bold\">From the perspectives of consultancies, as digitalization pushed further forward amid the pandemic, fintech\u2019s growth is imminent.<\/span><\/p><p class=\"MsoNormal\"><span lang=\"EN-US\" style=\"mso-bidi-font-weight:bold\">V Ram, vice-president and chief technology officer at Tata Consultancy Services, noted that by enabling more companies and financial institutions to consider digital platforms, the pandemic has pushed digital transformation by several orders of magnitude.<\/span><\/p><p class=\"MsoNormal\"><b><span lang=\"EN-US\">\u201cThe pandemic has pushed customers and companies over the digital technology tipping point and transformed adoption for many businesses into a priority. In just a few months, the crisis has accomplished years of digital transformation in most banks and companies by five to seven years,\u201d<\/span><\/b><span lang=\"EN-US\" style=\"mso-bidi-font-weight:\nbold\">\u00a0he said during the first of a three-part BusinessWorld Insights online forum series themed\u00a0<b>\u201cFintech for a Financially Inclusive and Resilient Economy.\u201d<\/b><\/span><\/p><p class=\"MsoNormal\"><span lang=\"EN-US\" style=\"mso-bidi-font-weight:bold\">He added that new opportunities for the finance sector are opening as most companies across the world has put up at least temporary solutions to meet newly scaling demands, much more than what they thought would be possible.<\/span><\/p><p class=\"MsoNormal\"><b><span lang=\"EN-US\">\u201cAs it was, the world continues to enjoy a modicum of entertainment, even if it was not in their regular settings like in the cinema. Trade and commerce also held up pretty well from short-term impacts thanks to fintech. Now is the chance for us to accelerate and take things forward. This is where we see fintech reshape the financial ecosystem,\u201d<\/span><\/b><span lang=\"EN-US\" style=\"mso-bidi-font-weight:bold\">\u00a0he said.<\/span><\/p><p class=\"MsoNormal\"><span lang=\"EN-US\" style=\"mso-bidi-font-weight:bold\">Moreover, Frost and Sullivan ICT and Fintech Head Shailendra Soni noted that while the financial revolution started slightly late in the Philippines compared to its neighboring countries, the country will certainly catch up.<\/span><\/p><p class=\"MsoNormal\"><b><span lang=\"EN-US\">\u201cThere will be more and more [fintech] services launched [that are] particularly putting consumers and enterprises at the center to make them pay better, save money, invest money, and insure themselves,\u201d<\/span><\/b><span lang=\"EN-US\" style=\"mso-bidi-font-weight:bold\">\u00a0Mr. Soni said during the second part of the online forum.<\/span><\/p><p class=\"MsoNormal\"><span lang=\"EN-US\" style=\"mso-bidi-font-weight:bold\">As people are beginning to experience these digital payment services and eventually realize their benefits, Mr. Soni added, the migration to more fintech-related solutions will also start.<\/span><\/p><p class=\"MsoNormal\"><b><span lang=\"EN-US\">\u201cI believe there is going to be infrastructure on the Internet that will become much better. There will be policies, rules, and regulations in place that will further accelerate the overall adoption of fintech. There\u2019s no U-turn; it\u2019s going to grow,\u201d<\/span><\/b><span lang=\"EN-US\" style=\"mso-bidi-font-weight:bold\">\u00a0he said.<\/span><\/p><p class=\"MsoNormal\"><span lang=\"EN-US\" style=\"mso-bidi-font-weight:bold\">Alongside such foreseen growth, fintech is expected to perform significant roles in further enabling financial inclusion in the country, empowering businesses, and expanding the access of basic financial services.<\/span><\/p><p class=\"MsoNormal\"><span lang=\"EN-US\" style=\"mso-bidi-font-weight:bold\">Financial experts are seeing in fintech solutions new opportunities to push the country closer to the goal of full financial inclusion, as the first part of the BusinessWorld Insights series tackled.<\/span><\/p><p class=\"MsoNormal\"><span lang=\"EN-US\" style=\"mso-bidi-font-weight:bold\">Bangko Sentral ng Pilipinas Assistant Governor Edna C. Villa said that while enlarging the economic pie is a necessary condition to reach the vision of creating a high quality of life among all Filipinos, it is not sufficient.<\/span><\/p><p class=\"MsoNormal\"><b><span lang=\"EN-US\">\u201cThe larger economic pie must be available at least for more, if not for all,\u201d<\/span><\/b><span lang=\"EN-US\" style=\"mso-bidi-font-weight:bold\">\u00a0she pointed out.<\/span><\/p><p class=\"MsoNormal\"><span lang=\"EN-US\" style=\"mso-bidi-font-weight:bold\">Such ideals are the foundation for the BSP\u2019s Digital Payment Transformation Roadmap for 2020 to 2023, which seeks to develop a digital payments ecosystem that targets current consumer and business needs to boost digital payments. One of its key targets is expanding the financially included to 70% of Filipino adults.<\/span><\/p><p class=\"MsoNormal\"><b><span lang=\"EN-US\">\u201cWe all know that payments is the most basic and most used financial service. Everyone uses it. It stands to reason therefore that there ought to be greater incentive to innovate in the payments sphere,\u201d<\/span><\/b><span lang=\"EN-US\" style=\"mso-bidi-font-weight:bold\">\u00a0she said.<\/span><\/p><p class=\"MsoNormal\"><span lang=\"EN-US\" style=\"mso-bidi-font-weight:bold\">The transformation road map includes the acceleration of EGov Pay, the digital government collection system for taxes, licenses, permits, etc., established for secure, contact-free channels for Filipinos to transact with the government.<\/span><\/p><p class=\"MsoNormal\"><b><span lang=\"EN-US\">\u201cThe pandemic undoubtedly helped accelerate the preference for digital transactions. We are convinced that the trend will continue even post-pandemic,\u201d<\/span><\/b><span lang=\"EN-US\" style=\"mso-bidi-font-weight:bold\">\u00a0Ms. Villa said.\u00a0<b>\u201cIf we are to maintain the momentum, however, we need to be deliberate in innovating to pave the way for greater financial inclusion. For our part, the BSP will continue to provide what we believe is an enabling regulatory environment for fintech innovations.\u201d<\/b><\/span><\/p><p class=\"MsoNormal\"><span lang=\"EN-US\" style=\"mso-bidi-font-weight:bold\">Sparky Perreras, co-founder and CEO at digital banking solutions provider PearlPay, Inc., said that fintech companies have an opportunity to position themselves as the bridge to connect rural communities with the greater financial world.<\/span><\/p><p class=\"MsoNormal\"><b><span lang=\"EN-US\">\u201cWhen COVID-19 struck, the biggest problem in terms of the business challenges for community-based financial institutions is in disbursing the loan proceeds. Because they don\u2019t have the digital channels in place to disburse the loan proceeds for their existing customers due to the lockdown, their business for loans has been badly affected, as loan customers are forced to visit physical rural branches or microfinance institutions just to receive the loan proceeds,\u201d<\/span><\/b><span lang=\"EN-US\" style=\"mso-bidi-font-weight:bold\">\u00a0he said.<\/span><\/p><p class=\"MsoNormal\"><b><span lang=\"EN-US\">\u201cThat\u2019s one problem that we are passionate to solve by enabling these rural banks and microfinance institutions to join the digital revolution and digital economy.\u201d<\/span><\/b><span lang=\"EN-US\" style=\"mso-bidi-font-weight:bold\"><\/span><\/p><p class=\"MsoNormal\"><span lang=\"EN-US\" style=\"mso-bidi-font-weight:bold\">Maria Lourdes Jocelyn Pineda, president of digital-only bank Tonik, further emphasized that the country should take this chance to push towards the ideal of financial inclusion.<\/span><\/p><p class=\"MsoNormal\"><b><span lang=\"EN-US\">\u201cThe need for financial inclusion has never been better understood as it is in the present. Most economies are radically transformed because of the pandemic,\u201d<\/span><\/b><span lang=\"EN-US\" style=\"mso-bidi-font-weight:bold\">\u00a0she said.<\/span><\/p><p class=\"MsoNormal\"><span lang=\"EN-US\" style=\"mso-bidi-font-weight:bold\">Ms. Pineda further noted that as consumer needs have evolved, a pressing need arises for the financial sector to truly embrace customer-centricity.\u00a0<b>\u201cThe new normal has efficiently curved the expectations of the banking customers, who now seek and choose institutions that they can entrust their money in a relationship built on mutual trust, transparency and benefits of the customers,\u201d<\/b>\u00a0she said.<\/span><\/p><p class=\"MsoNormal\"><span lang=\"EN-US\" style=\"mso-bidi-font-weight:bold\">Furthermore, Ms. Pineda added that the Philippines is in no better position to take advantage of these opportunities, due to the unique characteristics of the Filipino population regarding digital adoption and literacy.<\/span><\/p><p class=\"MsoNormal\"><b><span lang=\"EN-US\">\u201cAs the country is the world\u2019s leader in internet and social media usage, we believe that the Philippines is ripe for becoming a real leader in digital banking. To edge closer to a fully digitalized and cashless society, we must begin to listen and to address the customer need for a more inclusive and accessible way in banking that lets them grow their money the way they want to,\u201d<\/span><\/b><span lang=\"EN-US\" style=\"mso-bidi-font-weight:bold\">\u00a0she said.<\/span><\/p><p class=\"MsoNormal\"><span lang=\"EN-US\" style=\"mso-bidi-font-weight:bold\">In addition, Lito Villanueva, chairman of FinTech Alliance Philippines, recognized that the fintech industry has been facing and dealing with the challenge of getting more Filipinos banked, especially as the 2019 Financial Inclusion Survey of the BSP showed that the number of unbanked Filipino adults was estimated at 51.2 million, out of a total adult population of 72 million two years ago.<\/span><\/p><p class=\"MsoNormal\"><b><span lang=\"EN-US\">\u201c[W]e have seen this as a welcome challenge for the fintech industry to address this, especially now that going digital became the lifeline of the ordinary Filipinos to survive during the pandemic,\u201d<\/span><\/b><span lang=\"EN-US\" style=\"mso-bidi-font-weight:bold\">\u00a0Mr. Villanueva said during the third leg of the online forum series.<\/span><\/p><p class=\"MsoNormal\"><span lang=\"EN-US\" style=\"mso-bidi-font-weight:bold\">He added that the central bank\u2019s vision of a digitally and financially inclusive Philippines, enormous as it may seem, is nonetheless within the country\u2019s reach, \u201cespecially with current fintech innovations and solutions being implemented nationwide.\u201d<\/span><\/p><p class=\"MsoNormal\"><b><span lang=\"EN-US\">\u00a0<\/span><\/b><\/p><p class=\"MsoNormal\"><b><span lang=\"EN-US\">Supporting Large and Small Businesses<\/span><\/b><\/p><p class=\"MsoNormal\"><span lang=\"EN-US\" style=\"mso-bidi-font-weight:bold\">Fintech is also seen to serve as a reliable partner for businesses, from big enterprises to micro, small, and medium enterprises (MSMEs), as more consumers make use of fintech through digital services.<\/span><\/p><p class=\"MsoNormal\"><span lang=\"EN-US\" style=\"mso-bidi-font-weight:bold\">During the second part of the BusinessWorld Insights series, Robertson Chiang, founder, chief operating officer, and chief technology officer of online payment platform Dragonpay Corp., observed from its end that the usage of fintech notably increased amid the quarantine that started last year.<\/span><\/p><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"432\" height=\"121\" src=\"http:\/\/hearthstone.group\/wp-content\/uploads\/2023\/11\/fintech2.jpg\" alt=\"\" class=\"wp-image-692\" style=\"width:689px;height:auto\"\/><\/figure><\/div>\n\n\n<p><strong>\u201cOur transaction almost tripled during this period, which is a reflection of the people changing their habits from physical retail to going online,\u201d<\/strong>&nbsp;Mr. Chiang said.<\/p>\n\n\n\n<p>The trend seemed to be continuing this year, he added. Assuming that their transactions in the first half of 2021 would be the same in the second, it would almost double their transaction count in 2020.<\/p>\n\n\n\n<p>Payment methods also shifted, Mr. Chiang observed. From the 21.1% e-wallet usage in 2019, it leaped to around 64% in 2020 and then around 71% in the first half of 2021.<\/p>\n\n\n\n<p>Similarly, GCash\u2019s Chief Commercial Officer Frederic Levy suggested that as many people continue to use such technology, enterprises should incorporate it in their operations as well.<\/p>\n\n\n\n<p><strong>\u201cIt\u2019s getting more and more obvious for any form of businesses \u2014 including the small ones up to the big, organized ones \u2014 that they need to have [a digital] form of payment proposed to the consumer,\u201d<\/strong>&nbsp;Mr. Levy said.<\/p>\n\n\n\n<p>Moreover, fintech would evidently make payment convenient for the consumers. \u201cSo, the question [now] is what reason that would push you not to jump fintech if you are a small business,\u201d he stressed.<\/p>\n\n\n\n<p>As such, Mr. Levy later shared his advice for small and medium enterprises on adopting fintech solutions. \u201cFrom an MSME perspective, simplicity and onboarding clearly are a critical component because it will look for a provider who can propose you an all-in-one solution,\u201d he said.<\/p>\n\n\n\n<p><strong>\u201cMake sure that you are going after the payment solution that makes sense for your business, and also going for the widest audience possible,\u201d<\/strong>&nbsp;he added.<\/p>\n\n\n\n<p>Similarly, PayMaya\u2019s Chief Product Officer Mitch Padua also suggested that enterprises should look for the widest reach in terms of various payment types since second-guessing what consumers will have is difficult.<\/p>\n\n\n\n<p><strong>\u201c[Look] for a partner that can provide all types of payment, whether it\u2019s online or offline, sometimes your business can have a mix of both. It\u2019s very hard to reconcile if you have different terminals, payment gateways, [and] partners for each type of payment,\u201d<\/strong>&nbsp;Mr. Padua said.<\/p>\n\n\n\n<p>Another thing for MSMEs to look at is competitive rates. \u201cAt the end of the day, each partner or payment solution will have different rates, and someone that can help you lend all of those payment types into one simple rate will make your life a bit easier,\u201d he added.<\/p>\n\n\n\n<p>Mr. Padua also noted that the growing presence of these digital payment solutions will be exponential and such growth will be driven by services like theirs as merchant payment is expected to be the next trillion-peso segment.<\/p>\n\n\n\n<p><strong>\u201cAccelerating business to consumer, business to business, and business to government payments is where PayMaya commits to address,\u201d<\/strong>&nbsp;Mr. Padua shared.&nbsp;<strong>\u201cOver the short term, we\u2019re coming up with exciting innovations to make sure we can seamlessly enable businesses to send payments to other businesses and individuals by offering solutions that capture settlement, all the way down to disbursement, and to encashment.\u201d<\/strong><\/p>\n\n\n\n<p>Another factor expected to drive growth is that everyone can now become a digital entrepreneur with the transformation of MSMEs on the ground, he said.&nbsp;<strong>\u201cWe\u2019ve begun the digital migration of our Smart Padala agents to become a one-stop shop for digital financial services. Beyond remittance, they can now serve as agents for digital payments, digital lifestyle, and digital banking services,\u201d<\/strong>&nbsp;he added.<\/p>\n\n\n\n<p><strong>Expanding Reach to Customers<\/strong><\/p>\n\n\n\n<p>Alongside its role in realizing full financial inclusion in the country, fintech is expected to contribute more to making financial services more accessible to consumers.<\/p>\n\n\n\n<p>During the last leg of the online forum series, executives from industry players noted how their services have started performing these roles. JF Darre, chief data officer and head of financial services of GCash, pointed out that over a third of its users have tapped on its financial services such as credit, savings, investment, and insurance that can be availed right from the GCash app.<\/p>\n\n\n\n<p>He also noted the steady adoption of digital in terms of partnerships with the local government units (LGUs), with over P16 billion worth of social amelioration disbursed to over two million Filipinos through partnerships with LGUs.<\/p>\n\n\n\n<p><strong>\u201cDigital can be part of the solution. It\u2019s a complementary kind of solution in helping [amid] the crisis,\u201d<\/strong>&nbsp;Mr. Darre said, adding that GCash has always focused on making their products accessible and affordable.<\/p>\n\n\n\n<p>Meanwhile, Mar Lazaro, managing director and head of enterprise business and sales at PayMaya, noted that PayMaya\u2019s users doubled in 18 months, with about 62% of new registrations accounted outside Metro Manila and growth coming from the Baby Boomer and Gen X demographics. He also noted that the e-wallet provider makes sure that no one gets left behind by this shift to digital as it serves consumers without a smartphone through PayMaya\u2019s network of over 45,000 Smart Padala agent touchpoints.<\/p>\n\n\n\n<p>As the financial inclusion push moves forward, Mr. Lazaro sees digital hubs within the communities to take a key role.<\/p>\n\n\n\n<p><strong>\u201cBeyond remittance, community hubs such as sari-sari stores serve as bridges to the digital world. Soon, they will be digital agents for banks, e-commerce, and so on, and we\u2019ll see that happening in the next coming months,\u201d<\/strong>&nbsp;he said.<\/p>\n\n\n\n<p>As it aims to expand access to financial services, fintech is also seen to have kickstarted synergy among industry players and other stakeholders.<\/p>\n\n\n\n<p><strong>\u201cWe recognize the importance of fintech in enriching our customer experience and promoting seamless, frictionless banking for all 24\/7,\u201d<\/strong>&nbsp;Mr. Villanueva of Fintech Alliance said.&nbsp;<strong>\u201cBecause of this, we believe that technology can help promote synergy amongst all players in the industry.\u201d<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1320\" height=\"1060\" src=\"http:\/\/hearthstone.group\/wp-content\/uploads\/2023\/11\/fintech3.jpg\" alt=\"\" class=\"wp-image-693\"\/><\/figure>\n\n\n\n<p>Such synergy was evidenced among insurers, whose representatives in the panel shared their recent initiatives in making their products more accessible through fintech partners and other channels.<\/p>\n\n\n\n<p>Zayd Tolentino, chief technology officer of Singlife Philippines, shared that technology helps address the gap between the insured and the uninsured, who are \u201ccomposed of mainly middle-income families in search of protection products that fit their financial needs and can be easily adjusted when their needs change.\u201d<\/p>\n\n\n\n<p>Yet, Mr. Tolentino added, insurance technology (insurtech) cannot exist without fintech. \u201cYou need both technologies working together to disrupt the life insurance industry and deliver protection products that are truly digital.\u201d<\/p>\n\n\n\n<p>Rogie Ni\u00f1o, assistant vice-president and head of business project management office at Insular Life (InLife), considers insurtech as an extension of fintech, particularly an application that heavily touches consumer convenience and experience from the creation and distribution of insurance products to the administration of the insurance business.<\/p>\n\n\n\n<p>Mr. Ni\u00f1o further highlighted that InLife partnered with platforms such as Maria Health and Lazada to make their services more available to consumers.&nbsp;<strong>\u201cThere are upcoming fintech partnerships that InLife is currently working on \u2014 the likes of GLife, Kwik.insure, [and] City Savings, to name a few \u2014 which depicts that we\u2019re an active player in this digital ecosystem,\u201d<\/strong>&nbsp;he added.<\/p>\n\n\n\n<p>Mr. Tolentino, on the other hand, pointed out its use of blockchain technology, Application Programming Interface-driven approach, and cloud to make life insurance&nbsp;<strong>\u201ctotally mobile-first.\u201d<\/strong>&nbsp;He added that their firm built a plug-and-play solution that only needs to connect to the partner\u2019s Know Your Customer (KYC) data and payment platform.<\/p>\n\n\n\n<p><strong>\u201cThis plug-and-play solution, or what we call our microservices portal, houses all our protection products and can be integrated into the front end of any digital platform,\u201d<\/strong>&nbsp;he explained.&nbsp;<strong>\u201cThis cohabitation setup allows a seamless user flow between two platforms without having to switch screens.\u201d<\/strong><\/p>\n\n\n\n<p><strong>\u201cFor any incoming partner, we simply create a partner node and embed our portal within their app so they can offer our products to their customers,\u201d<\/strong>&nbsp;he added.<\/p>\n\n\n\n<p><strong>Meaningful Financial Inclusion<\/strong><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"416\" height=\"230\" src=\"http:\/\/hearthstone.group\/wp-content\/uploads\/2023\/11\/fintech4.png\" alt=\"\" class=\"wp-image-694\" style=\"width:807px;height:auto\"\/><\/figure><\/div>\n\n\n<p>While the country has achieved much in its quest for financial inclusion with the help of fintech, much remains to be done.<\/p>\n\n\n\n<p>Rex Gatchalian, mayor of Valenzuela City, pointed out the importance of building an enabling environment for fintech to thrive, which the government \u2014 particularly LGUs \u2014 should initiate.<\/p>\n\n\n\n<p><strong>\u201cBefore we become inclusive, government and LGUs must be able to provide that platform,\u201d<\/strong>&nbsp;he said, pointing out that this&nbsp;<strong>\u201cmultidimensional issue\u201d<\/strong>&nbsp;can be addressed by ramping up the national ID system and building up the country\u2019s digital infrastructure. The latter, he stressed, heavily depends on internet service providers (ISPs).<\/p>\n\n\n\n<p><strong>\u201cISPs really have to shape up\u2026 It\u2019s more of a private sector initiative in fixing infrastructure,\u201d<\/strong>&nbsp;Mr. Gatchalian said.<\/p>\n\n\n\n<p>Kiranjit Singh, head of the Strategy3 division at market research firm Ipsos, said that financial inclusion must be meaningful.<\/p>\n\n\n\n<p><strong>\u201cWe should have meaningful financial inclusion [that goes] beyond just transactions [and enables] the ability of Filipinos to utilize certain several financial tools for their personal growth [and the] growth of their business,\u201d<\/strong>&nbsp;he said.<\/p>\n\n\n\n<p>Mr. Singh added that digital inclusion cannot be the only solution for financial conclusion in the Philippine context. \u201cYou still need to have the basic, traditional, physical means of getting more Filipinos to become more financially inclusive,\u201d he said.<\/p>\n\n\n\n<p>He also noted that&nbsp;<strong>\u201cfinancial inclusiveness is one of the greatest enablers for a rising middle class,\u201d<\/strong>&nbsp;and this fact should direct current and future policies that will enable fintech.<\/p>\n\n\n\n<p><strong>\u201cFintech is actually the best leveler in terms of getting more people to be financially inclusive,\u201d<\/strong>&nbsp;he emphasized.<\/p>\n\n\n\n<p>Along this quest for financial inclusion, the cultivating financial literacy among Filipinos must not be overlooked.<\/p>\n\n\n\n<p>Mr. Villanueva notes the finding in BSP\u2019s 2019 survey that the reasons cited by 88% of mobile phone users who don\u2019t use their phones to perform financial transactions were the lack of awareness, lack of trust, and lack of mobile signal, as well preference in physical transactions.<\/p>\n\n\n\n<p><strong>\u201cTo help improve this scenario, a responsive grassroots program on financial education and digital literacy must be launched,\u201d<\/strong>&nbsp;he said, noting that the Rural Financial Inclusion and Literacy Bill and the Use of Digital Payments Bill, both pending in Congress, will deepen roots of financial education and inclusion if they push through.<\/p>\n\n\n\n<p>Moreover, he recommends the integration of lessons on digital finance and fintech in the basic education curriculum; effective strategic communications through the use of alternative and digital media; and the maximization of social media reach and platforms to cultivate financial awareness and literacy and so shape the behavior of Filipinos towards a positive attitude with fintech and financial services.<\/p>\n\n\n\n<p>Mr. Singh of Ipsos, meanwhile, noted the need to educate consumers on the do\u2019s and don\u2019ts of managing accounts and sharing sensitive data.<\/p>\n\n\n\n<p><strong>\u201cAcross Southeast Asia, we\u2019re seeing right now the rise of scams or mule accounts.&nbsp;<\/strong>The new generation of financially inclusive [people must] know what they should and should not share with strangers,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>SEP 6, 2021 \/ originally published in\u00a0Business World One of the most notable shifts seen during the coronavirus disease 2019 (COVID-19) pandemic is the growing use of digital payments. Although &#8230;<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,13],"tags":[8],"class_list":["post-689","post","type-post","status-publish","format-standard","hentry","category-news","category-pearlpay","tag-pearlpay"],"_links":{"self":[{"href":"http:\/\/hearthstone.group\/index.php?rest_route=\/wp\/v2\/posts\/689"}],"collection":[{"href":"http:\/\/hearthstone.group\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/hearthstone.group\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/hearthstone.group\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"http:\/\/hearthstone.group\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=689"}],"version-history":[{"count":1,"href":"http:\/\/hearthstone.group\/index.php?rest_route=\/wp\/v2\/posts\/689\/revisions"}],"predecessor-version":[{"id":695,"href":"http:\/\/hearthstone.group\/index.php?rest_route=\/wp\/v2\/posts\/689\/revisions\/695"}],"wp:attachment":[{"href":"http:\/\/hearthstone.group\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=689"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/hearthstone.group\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=689"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/hearthstone.group\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=689"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}