Filipinos have become known as among the world’s most active social media users in recent years. According to research, as of January 2020, the Philippines had a social media penetration rate of roughly 68 percent, with Filipinos spending an average of nine hours and 45 minutes each day on the internet.
Naturally, the growth of social media has increased the use of other online platforms, such as e-commerce, in which financial technology, or fintech, plays a part.
In fact, these developments in the Philippine finance industry did not occur overnight. Fintech was only made possible in the year 2000, when the Bangko Sentral ng Pilipinas (Philippine Central Bank) authorized internet banking. Given that many Filipinos were still unfamiliar with technology at the time, it took some time for fintech to properly develop in the country.
Nonetheless, we can anticipate the Philippines to keep playing catch up with more advanced countries in terms of fintech, thanks to both technology and the drive of local financial institutions to promote financial inclusiveness. Financial solutions have shown that they can benefit not only ordinary people and businesses, but also the entire Philippine economy over time. It should come as no surprise that the fintech industry is now assisting the country in healing its financial wounds, which have been there for decades.
Financial institutions in the Philippines could benefit from a system that delivers fast leads to possible loan and credit card applications, allowing the underwriting process to be expedited, given that 76 percent of the population is unbanked. Regular consumers can also benefit from our program because it matches them with the right form of credit based on a highly predictable credit analysis.
With a large English-speaking population and a more western oriented culture, Manila is an ideal location for FinTech growth. There are approximately 136 FinTech businesses registered in the country, according to the country’s Department of Trade and Industry. More opportunities for the FinTech business will undoubtedly arise as a result of the new normal. In the Philippines, there are five FinTech startups to keep an eye on:
JustPayto
JustPayto is a registered money transfer company that serves both individuals and businesses. The startup, which was founded in 2015, is building a frictionless ecosystem with financial institutions and e-wallets to provide convenient interbank, inter institution, inter-platform, and inter currency money transfers.
JustPayto aspires to provide a variety of payment choices without the effort of dealing with various banks or navigating sophisticated apps. Multiple disbursement alternatives, such as credit/debit cards, bank fund transfers, internet banking, over the counter (OTC), e-wallet, and cryptocurrencies, are made easier with the app.
MarCo Pay
MarCoPay, which stands for Maritime Community Pay, was formed in mid-2019. The company provides an electronic money platform that was created for seamen working outside of Japan in mind. To satisfy pre-boarding procedures, as well as to receive and convert salary into digital currency, the app uses QR codes. This e-money can also be used for onboard purchases.
The company acquired features and services that aim to stimulate the innovation of onboard money transactions through digital solutions, as well as the development of seafarers’ and their families’ quality of life.
Optimum Remit Inc.
Doing business as ALLCASH is a corporation registered with the Securities and Exchange Commission (SEC) on 06 March 2007 primarily to engage in the business of overseas remittances. The Bangko Sentral ng Pilipinas (BSP) issued the company its foreign exchange and remittance licenses on 24 May 2007.
Serves as the fulfillment arm in the Philippines of its various remittance tie-ups in Kuwait, the UAE, Saudi Arabia, Hong Kong, Singapore, and Saipan, through its different product offerings.
Optimum Remit provides fast and easy money remittance, competitive foreign exchange rates, and bill payments services in the country and abroad.
PayMongo
PayMongo provides a payment API for businesses in the Philippines. This can be implemented into websites and apps, allowing owners to take payments via bank cards and digital wallets such as GrabPay and GCash, making running an online business much easier. The company’s combination of modern fraud detection techniques and PCI-certified systems ensures that transactions adhere to standards and are safeguarded against fraudulent activity.
PayMongo was the first Filipino FinTech firm to be accepted into Y Combinator’s acceleration program, having launched in 2019. In September 2020, it received a US$12 million Series A funding round.
SeekCap
All commercial businesses need to be able to fund and manage their cash flow. Small businesses, on the other hand, may find it difficult to obtain loans or short-term finance. Traditional banking in the country has stringent qualifying requirements, making it difficult for some enterprises to obtain the capital they need.
This platform strives to close the gap between banks and small businesses. SeekCap is a subsidiary of UnionBank, one of the Philippines’ largest banks. The platform makes it easier and less stressful to acquire a loan that will help a business grow or thrive.
Tonik
Tonik is the first neobank solution in the Philippines. TONIK sees an untapped opportunity to change this and bring the Philippines into the digital banking sector, with a large portion of the population unbanked. TONIK promises to address the problems with traditional banking by allowing consumers to access their money and short-term loans quickly and easily through a simple app. In addition, the company just announced a new collaboration with Mastercard.
The platform is a consumer financial technology firm that offers a highly secure banking services infrastructure for commerce financial institutions such as deposits, loans, current accounts, payments, and cards.
References:
JUSTPAY
OPTIMUMREMITPARTNERS
MACROPAYINC
PAYMONGO
SEEKCAP
TONIKBANK
MILKENINSTITUTE
FINTECHCOFFEE
