Financial Technology, more commonly known as FinTech, is a new industry that uses software and modern technology to provide improved and better financial services to its clientele. It competes with traditional financial methods in the delivery of financial services using advance platforms such as the internet, smartphones (for mobile banking and investing), cryptocurrency. Most companies heavily engaged in financial technology are start-ups but more and more established businesses are adopting with this trend to gain advantage over the competition and prevent them from being overtaken by newcomers. Most fintech companies nowadays are on head-to-head competition with traditional banks in selling their financial solutions to customers. This is driven by the people’s need for fast, reliable, cheap and accessible financial services such money transfer, lending, investing, and payments.
FinTech is rapidly gaining popularity in the Philippines not only because there are millions of overseas field workers who send billions of pesos in remittances annually, but because the country is a major tourism hub in Asia. The country is now considered a major destination of remittances which spiked up the demand for convenient platforms to do transactions involving money. There are now dozens of outstanding fintech start up payment platforms such GCash, Smart,TagCash, Beam and Go, PITACA, Zaptag, ePeso, PayMaya, Pesopay, Weepay, BankO, and many more. There are also those engage in alternative financing services such as Lendr, Leverage, Loansolutions, Lendme, and Pawnhero; while those engaged in remittance services include the likes of Smart Padala, Bloom, Sendah, Rebit, ButBitcoin, and Coinage. Meanwhile there are also those engaged in payroll and credit analytics and other areas of financial services. More and more techo-preneurs, designers and innovators are involved in the design and development of these kinds of platforms including smartphone applications because of the great potential the industry is seeing.
FinTech’s popularity in the country is largely attributed to its ability to widen or enhance financial inclusion especially among the unbanked poor and marginalized people. Financial inclusion is considered in the Philippine Development Plan 2011-2016 as an important strategy in attaining inclusive growth. It has the ability to empower the poor, marginalized and underserved citizens to manage their finances and reduce their vulnerability to financial distress, debt, and poverty by allowing them access on financial services which are not readily available. It helps in reducing poverty (SDG Goal 1) by extending the reach of financial services to this sector because such services address the basic socioeconomic needs of individuals and families particularly food, shelter and clothing.
FinTech helps in providing individuals and groups including business entities with access to resources they need to improve their conditions and achieve their long-term goals, if, when, and where they need it. It essentially helps in transforming people’s lives towards the better because access to financial services gives them opportunity to earn more and increase or build their assets which cushions them during critical times. Access to financial services not only helps people put up their own business enterprise, but also helps in creating jobs, and improving the lives of other members of the community. As business grows, it generates opportunities for others to participate in economic activities and gain employment thus reducing inequality (Goal 10).
Financial inclusion leads to increase in savings and investment, thereby promoting inclusive economic growth (Goal 8) which subsequently helps in reducing hunger (Goal 2) and the achievement of other goals particularly on water and sanitation (Goal 6) , education (Goal 4) and gender equality (Goal 5).
FinTech is rapidly gaining popularity in the Philippines not only because there are millions of overseas field workers who send billions of pesos in remittances annually, but because the country is a major tourism hub in Asia. The country is now considered a major destination of remittances which spiked up the demand for convenient platforms to do transactions involving money. There are now dozens of outstanding fintech start up payment platforms such GCash, Smart,TagCash, Beam and Go, PITACA, Zaptag, ePeso, PayMaya, Pesopay, Weepay, BankO, and many more. There are also those engage in alternative financing services such as Lendr, Leverage, Loansolutions, Lendme, and Pawnhero; while those engaged in remittance services include the likes of Smart Padala, Bloom, Sendah, Rebit, ButBitcoin, and Coinage. Meanwhile there are also those engaged in payroll and credit analytics and other areas of financial services. More and more techo-preneurs, designers and innovators are involved in the design and development of these kinds of platforms including smartphone applications because of the great potential the industry is seeing.
FinTech’s popularity in the country is largely attributed to its ability to widen or enhance financial inclusion especially among the unbanked poor and marginalized people. Financial inclusion is considered in the Philippine Development Plan 2011-2016 as an important strategy in attaining inclusive growth. It has the ability to empower the poor, marginalized and underserved citizens to manage their finances and reduce their vulnerability to financial distress, debt, and poverty by allowing them access on financial services which are not readily available. It helps in reducing poverty (SDG Goal 1) by extending the reach of financial services to this sector because such services address the basic socioeconomic needs of individuals and families particularly food, shelter and clothing.
FinTech helps in providing individuals and groups including business entities with access to resources they need to improve their conditions and achieve their long-term goals, if, when, and where they need it. It essentially helps in transforming people’s lives towards the better because access to financial services gives them opportunity to earn more and increase or build their assets which cushions them during critical times. Access to financial services not only helps people put up their own business enterprise, but also helps in creating jobs, and improving the lives of other members of the community. As business grows, it generates opportunities for others to participate in economic activities and gain employment thus reducing inequality (Goal 10).
Financial inclusion leads to increase in savings and investment, thereby promoting inclusive economic growth (Goal 8) which subsequently helps in reducing hunger (Goal 2) and the achievement of other goals particularly on water and sanitation (Goal 6) , education (Goal 4) and gender equality (Goal 5).
