Close this search box.

We are creating some awesome events for you. Kindly bear with us.

Philippine Central Bank Pushes Digital Transformation for Microfinance Institutions

Innovation is key to the success of any enterprise. Knowing how much it can make services in the private sector available to the masses, the nation’s central bank is advocating microfinance institutions (MFI) undergo digital transformation.

The Bangko Sentral ng Pilipinas (BSP) has highlighted the contribution of microfinance institutions (MFIs) in making financial products and services more accessible to micro and small enterprises, especially in less-developed rural areas. However, BSP Governor Benjamin Diokno detailed that these financial institutions should not stop there. Rather,  MFIs should go a step further and expand their reach more through digital transformation.

Diokno disclosed that MFIs are strategic partners of the government to achieve financial inclusion as 84% of local government units (LGUs) have access to MFIs. Moreover, more than half (57%) of unbanked LGUs also have an MFI presence.

Today, 144 banks are engaged in microfinance. They provide safe and affordable financial services to around 2 million borrowers with a total microfinance loan portfolio of PHP26 billion. With that, the BSP recognises the potential of technology as a game-changer for microfinance. 

– Benjamin Diokno, Governor, Bangko Sentral ng Pilipinas

The BSP chief added that non-bank MFIs, such as cooperatives, have assisted 8.8 million members by providing PHP288 billion (USD 5,502,504,960) worth of outstanding loans this year. On the other hand, microfinance non-governmental organisations served 6.2 million clients with a total loan of PHP50 billion (USD 955,296,000.00).

Diokno cited there is growing traction on the use of digital loan disbursement and collection as well as online payment gateways. In addition, he showed how much mobile has been instrumental in the nation’s digital adoption. He added mobile applications provide a seamless experience for self-service options to access account information and availing of online financial services.

Innovation has also been pursued in back-end operations of MFIs, such as automated financial management systems, as well as credit scoring and decision-making models, Diokno said. He said embracing digitalisation will facilitate transitioning microfinance clients from cash to digital transactions that will support the BSP goals on digital payments. The central bank governor added that collaboration is instrumental in the establishment of shared digital platforms or facilities among MFIs to create a multiplier effect on the microfinance sector.

Digital adoption has certainly changed the banking picture for the better in the Philippines. Not too long ago, Diokno also reported how the country’s digital banks have pushed the envelope, allowing people from remote areas and other hard-to-access places the chance to benefit from banking without having to go to a physical bank. In short, digital banks have created greater banking opportunities for the Asian nation.

Digital transformation, indeed, is the way for the Philippines. Over the years, it’s been pursuing digitalisation for almost all government services. Recently, Manila detailed how space technology (e.g., satellites) can strengthen its national sovereignty. To that end, it is pursuing the hiring of apt manpower, described as T-shaped people.

The good news about digital transformation is everyone on the archipelago should be able to make the most out of it. Digital technology can provide better ways to serve its people. A concrete example is a fight against natural disasters. As a nation that’s prone to typhoons and earthquakes being part of the Pacific Ring of Fire, the Philippines must constantly be on the lookout for natural disaster risks. It’s a taxing job seeing how much damage a calamity could induce to the general populace. ICT has provided ways so the country can have the upper hand in its battle against natural disasters as reported on OpenGov Asia.


Qlik’s vision is a data-literate world, where everyone can use data and analytics to improve decision-making and solve their most challenging problems. A private company, Qlik offers real-time data integration and analytics solutions, powered by Qlik Cloud, to close the gaps between data, insights and action. By transforming data into Active Intelligence, businesses can drive better decisions, improve revenue and profitability, and optimize customer relationships. Qlik serves more than 38,000 active customers in over 100 countries.


As a Titanium Black Partner of Dell Technologies, CTC Global Singapore boasts unparalleled access to resources.

Established in 1972, we bring 52 years of experience to the table, solidifying our position as a leading IT solutions provider in Singapore. With over 300 qualified IT professionals, we are dedicated to delivering integrated solutions that empower your organization in key areas such as Automation & AI, Cyber Security, App Modernization & Data Analytics, Enterprise Cloud Infrastructure, Workplace Modernization and Professional Services.

Renowned for our consulting expertise and delivering expert IT solutions, CTC Global Singapore has become the preferred IT outsourcing partner for businesses across Singapore.


Planview has one mission: to build the future of connected work. Our solutions enable organizations to connect the business from ideas to impact, empowering companies to accelerate the achievement of what matters most. Planview’s full spectrum of Portfolio Management and Work Management solutions creates an organizational focus on the strategic outcomes that matter and empowers teams to deliver their best work, no matter how they work. The comprehensive Planview platform and enterprise success model enables customers to deliver innovative, competitive products, services, and customer experiences. Headquartered in Austin, Texas, with locations around the world, Planview has more than 1,300 employees supporting 4,500 customers and 2.6 million users worldwide. For more information, visit


SIRIM is a premier industrial research and technology organisation in Malaysia, wholly-owned by the Minister​ of Finance Incorporated. With over forty years of experience and expertise, SIRIM is mandated as the machinery for research and technology development, and the national champion of quality. SIRIM has always played a major role in the development of the country’s private sector. By tapping into our expertise and knowledge base, we focus on developing new technologies and improvements in the manufacturing, technology and services sectors. We nurture Small Medium Enterprises (SME) growth with solutions for technology penetration and upgrading, making it an ideal technology partner for SMEs.


HashiCorp provides infrastructure automation software for multi-cloud environments, enabling enterprises to unlock a common cloud operating model to provision, secure, connect, and run any application on any infrastructure. HashiCorp tools allow organizations to deliver applications faster by helping enterprises transition from manual processes and ITIL practices to self-service automation and DevOps practices. 


IBM is a leading global hybrid cloud and AI, and consulting services provider, helping clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Nearly 3,800 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently, and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and business services deliver open and flexible options to our clients. All of this is backed by IBM’s legendary commitment to trust, transparency, responsibility, inclusivity, and service. For more information, visit