THE FUTURE OF FINANCE, PHILIPPINES 2018

Strong economy and vital innovation for the Philippines

Going digital for the financial services industry has been regarded as a faster, safer, efficient and more convenient method of banking operations, enabling straight-through processing as well as automating and digitizing repetitive, low-value, and low-risk processes. For a country like the Philippines, which is still heavily reliant on cash transactions, there is a need to adopt digital payments to fully realise its goal of going cashless.

The development of financial technology (fintech) and e-commerce in the country has paved the way towards the digitalisation of payment transactions. Digital payments have played a positive role in improving consumer and merchant welfare by reducing inefficiencies and unlocking economic opportunities. Banks have also established the National Retail Payment System (NRPS), a flagship programme of the Bangko Sentral ng Pilipinas (BSP) to modernise the country’s payment system and create a safe, efficient and reliable retail payment system in the Philippines.

With several banks capitalising current trends and incorporating fintech in their operations, the future of digitalisation in the Philippines holds great potential. This will require surpassing many deep-rooted issues before moving slowly towards a digitalised and a cash-lite economy.