AN executive of Globe Fintech Innovations Inc. (GFII), the company behind the “GCash” brand, sees the Philippines as a “fertile ground” for innovations in financial technology (fintech), as both regulatory and market conditions set the environment for further growth in this sector.
GFII Vice President for Money Transfers Frederic Levy said emerging markets like the Philippines are rife with opportunities for the fintech sector, as gaps in the financial industry have thrown doors wide open for mobile platforms like their company to leverage their technology and institutional partnerships in finding end-to-end solutions.
GFII, which promotes and calls itself “Mynt,” is a wholly owned subsidiary of Globe Capital Venture Holdings.
“There is more space for you to compete,” Levy said. “That’s why we talk about the unbanked and the underserved. That gives more opportunity. That, for me, is the big difference.”
Central Bank data show that around 65 percent of Filipinos do not have bank accounts, while the remaining have no access to banks.
“Left out of the formal financial system, these citizens present a huge market for fintech innovations toward financial inclusion,” Levy said.
The official also said the sizable percentage of unbanked Filipinos, coupled with the Bangko Sentral ng Pilipinas’s (BSP) welcoming regulations for fintech innovations, is likely to spur growth of more digital solutions to banking in the coming years.
“The Philippines is supportive and moving fast. If you check, for example, the BSP perspective; they have the 2020 program. They say that in 2020, 20 percent of the transactions should be cashless. They are really pushing for it,” Levy said.
In December 2015, the BSP launched the National Retail Payment System framework, which aims to increase electronic transactions exponentially in five years.
In a recent dialogue with the BusinessMirror, BSP Governor Benjamin E. Diokno expressed optimism that they will exceed this target in 2020.