February 23, 2024

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

Digital Banks to Bring Significant Impact on The Philippines Financial Sector

The emergence of digital banks, according to the Bangko Sentral ng Pilipinas (BSP), can be a game-changer in the delivery of financial products and services by traditional brick-and-mortar banks. The Philippine government has prioritised e-commerce and electronic payment methods in its efforts to increase financial and digital inclusion across the country. In a statement, the BSP governor stated that the rise of digital banks can drive existing banks’ digital transformation initiatives to stay relevant and competitive.

He also noted that as new entrants provide affordable financial services to the mass market, digital banking can promote financial inclusion, prosperity, and poverty alleviation. “In all of these, the customers and business community will reap the benefits,” the governor pointed out. Digital banks provide end-to-end financial products and services through a digital platform and or electronic channels, with no physical branch or sub-branch or branch-lite unit providing financial products and services.

Six digital banks’ applications have been approved by the Monetary Board so far. These digital banks intend to serve Overseas Filipino Workers, as well as the underserved, unbanked, and mass market, based on their profiles. They may, however, venture into investments, insurance, and payment services.

The BSP is limiting the number of digital banks to closely monitor their performance and impact on the banking system, as well as their contribution to the financial inclusion agenda. The BSP governor has also stated that the BSP must ensure healthy competition among banks to encourage the development of innovative and competitive financial products and services.

The BSP chief explained that with only six neo-banks, they will be able to closely monitor the development of the digital bank market and ensure healthy competition between digital banks and existing traditional banks. Digital banks, which must have at least P1 billion in capitalisation, have little or no reliance on physical touchpoints but must set up one office in the Philippines as a central hub to receive and resolve customer complaints.

Digital banking is a key component of the BSP’s Digital Payment Transformation Roadmap, which aims to transform at least 50% of total retail payments to digital form and onboard at least 70% of Filipino adults to the financial system through transaction account ownership and use.

As reported by Opengov Asia, the roadmap intends to transform the country into a cash-lite society. During the pandemic, the use of digital payments reduced the need for mobility and helped to avoid health risks associated with face-to-face and over-the-counter financial transactions. The BSP stated that in the first seven months of 2021, the value of transactions made through its local E-wallets increased by more than 180%, and another by more than 80%.

Both Philippines’ leading E-wallets are automated clearing houses under the National Retail Payment System. One of the leading E-wallet platforms is a batch electronic fund transfer (EFT) that can be thought of as an electronic alternative to the paper-based check system, whereas the other leading E-wallet is a real-time, low-value EFT for transactions up to P50,000 that is useful for e-commerce.

The use of contactless technology is undeniably increasing, but in addition to more people tapping their cards, it is known that there is also a significant increase in engagement with QR payments. It would allow customers to authenticate themselves when purchasing without the use of a PIN pad. More importantly, it gives consumers complete control over their transactions from their device, resulting in a richer overall experience. Recognising this, rapid developments in QR and NFC-enabled tap and go payments are expected over the next year.

PARTNER

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.

PARTNER

CTC Global Singapore, a premier end-to-end IT solutions provider, is a fully owned subsidiary of ITOCHU Techno-Solutions Corporation (CTC) and ITOCHU Corporation.

Since 1972, CTC has established itself as one of the country’s top IT solutions providers. With 50 years of experience, headed by an experienced management team and staffed by over 200 qualified IT professionals, we support organizations with integrated IT solutions expertise in Autonomous IT, Cyber Security, Digital Transformation, Enterprise Cloud Infrastructure, Workplace Modernization and Professional Services.

Well-known for our strengths in system integration and consultation, CTC Global proves to be the preferred IT outsourcing destination for organizations all over Singapore today.

PARTNER

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 www.planview.com.

SUPPORTING ORGANISATION

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.

PARTNER

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. 

PARTNER

IBM is a leading global hybrid cloud and AI, and business services provider. We help 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 3,000 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.

Send this to a friend