5 important FinTech developments in July 2020 that promoted financial inclusion in the Philippines

Source: IBS Intelligence 2020-07-31

The Philippines is one of the best examples of a country ramping up its efforts to protect the underserved sections of society when it comes to credit facilities. Financial technology (FinTech) has been used as a solution to address these issues by accelerating the rollout of digital banking methods and finance options for the unbanked as well as the underbanked. The significance increases as the vulnerable sections are impacted most in the wake of the COVID-19 outbreak which has left many individuals challenged in this crisis. Here are the important FinTech developments that transpired in July which aim to connect these sections with access to financial services.

Mastercard and tonik

Singapore-based tonik is a 2-year-old startup that recently received a bank license in the Philippines. Mastercard will enable tonik to issue a range of electronic payments products that tap into Mastercard’s global network and extensive business intelligence when tonik launches operationally in the Philippines, later this year. Digital banking is a great way for the promotion of inclusive finance methods with an increase in internet and mobile penetration.

DA-ACPC and PayMaya

Philippines’ Department of Agriculture – Agricultural Credit Policy Council (DA-ACPC) has partnered with Mandaluyong-based PayMaya, a digital finance company, to provide a financial disbursement platform for the Kapital Access for Young Agripreneurs (KAYA) Loan Program. PayMaya will allow DA-ACPC’s partner lending conduits (PLCs) for KAYA to digitally disburse loans to borrowers through the PayMaya-enabled prepaid payment cards. The loan disbursement solution for PLCs is 24/7 and has a real-time crediting through the PayMaya PayOut web-based portal.

GoBear, Mambu and CredoLab

GoBear, a Singapore-based financial services platform, announced its partnership with Mambu, a cloud banking platform headquartered in Berlin, and Singapore’s credit-scoring FinTech – CredoLab. The collaboration arises as GoBear aims to accelerate its lending business across Asia where it aims to tap millions of the underserved population.

BTr, UnionBank and PDAX

Philippine Bureau of the Treasury (BTr), Union Bank of the Philippines (UnionBank), and Philippine Digital Asset Exchange (PDAX) are said to be the ﬁrst in Asia to launch an app for the distribution of retail treasury bonds enabled by Distributed Ledger Technology (DLT). The app, called Bonds.PH is completely digital and available 24/7. Filipinos, including the unbanked and overseas workers, can invest in retail treasury bonds. Payments can be done by using e-wallets, online banking, and over-the-counter, for as low as USD 100.

Venio

New York-based Venio, the mobile application providing ‘nano-credit’ facilities to consumers in emerging markets, has begun offering easy-to-access credit facilities to unbanked consumers in the Philippines. The company stated that within the first week of operations, the Venio App saw 10,000 downloads. The initial rollout for the fast-growing app comes ahead of wider regional expansion plans for high growth emerging markets in Asia and Latin America.

financial technology

5 important FinTech developments in July 2020 that promoted financial inclusion in the Philippines

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