As the world continues to combat the COVID-19 pandemic, it is apparent that the new economy is digital. The health crisis has accelerated digital transformation of society and its adoption to fintech capabilities. The Philippines has marked record-high transactions both in number and volume of fund transfers, payments and disbursements during the lockdown period.
In 2019, the Bangko Sentral ng Pilipinas (BSP) has publicly proclaimed the promotion of financial technology (Fintech) as a priority agenda. The central bank has released a Fintech Roadmap for the Philippines, detailing a balanced approach between enabling useful innovation and mitigating its associated risks. The roadmap covers collaborative engagements, development of regulatory policies and capacity building towards financial inclusion.
February of this year, the Department of Trade and Industry considered fintech as a flourishing industry in the Philippines. The Trade department said there are 136 fintech companies operating in the country, with 26-percent being local startup businesses. The industry has 29-percent in alternative financing or accounting, 22-percent in digital payments, and 19-percent focused on blockchain, while the rest are into investments, remittances or crowd-funding platforms.
While the leadership of the BSP has acknowledged the crucial role of fintech as an innovative provider and enabler of financial services, the potential of the industry also comes with manageable risks. It is equally imperative that society understands the technological solutions that will empower the financial sector with robust cyber security, business continuity measures, data management and user experience.
In the advanced world of technology, the fitting digital solutions must be harnessed to ensure the development of fintech. Cloud-based technologies, artificial intelligence, blockchain are among the various examples of accessible keys to the digital transformation of the financial sector.
It is in this light, that the Stratbase ADR Institute has organized a virtual town hall discussion (vTHD) entitled, “Secure and reliable Cloud Banking for economic recovery”. The program aims to gather stakeholders from the banking and financial service industry, to discuss the augmented adoption of fintech in the Philippines. The digital transformation of the financial sector is vital for financial inclusion of the millions of Filipinos towards and the business continuity of all industries towards economic recovery.
The responsiveness of the Financial Service Industry in synergy with government is critical to an all of society approach in rebuilding economic resilience and re-accelerating economic growth to pre-pandemic levels
Mr. Francesco “Paco” A. Pangalangan
Executive Director, Stratbase ADR Institute
Prof. Victor Andres “Dindo” C. Manhit
President, Stratbase ADR Institute
Ms. Chuchi G. Fonacier
Deputy Governor, Bangko Sentral ng Pilipinas
Mr. Cezar “Bong” P. Consing
President, Bankers Association of the Philippines;
CEO and President, Bank of the Philippine Islands
Mr. Justo “Tito” A. Ortiz
Chairperson, FinTech Philippines Association;
Chairperson, Distributed Ledger Technology Association of the Philippines;
Vice Chairperson, Unionbank of the Philippines
Mr. Andres Ortolá
Country General Manager, Microsoft Philippines