Fintech key tool to curb corruption, deepen inclusion

SINGAPORE – Financial technology (fintech) could play a vital role in promoting transparency and combating corruption in the Philippines, according to Philippine Ambassador to Singapore Medardo Macaraig.

During the opening of the Philippine Pavilion at the 2025 Singapore FinTech Festival, Macaraig said fintech could be a vital tool in addressing corruption and promoting transparency in government transactions.

“One of the solutions that I have always told the President is that fintech is one of those ways to resolve those issues, because with fintech, there is an electronic trail of what we’re doing, and there is a way of determining whether corruption happens somewhere,” he said. “So I hope all of us will be supporting that.”

Macaraig said the Philippines’ growing fintech ecosystem has become a powerful enabler of trust, efficiency and inclusion. “It sends a clear signal to the global markets that the Philippines is a trusted, secure and forward-looking jurisdiction for digital finance and innovation,” he said.

“It also unlocks new opportunities for cross-border partnerships, digital payments integration and deeper capital flows,” he added.

Macaraig said the Philippines now has more than 300 fintech firms spanning digital payments, lending, banking and buy-now-pay-later services. Digital payments now account for 57 percent of total retail transactions by volume and 59 percent by value, a dramatic rise from just one percent in 2013.

Macaraig said the six licensed digital banks are reaching millions of Filipinos with simplified and low-cost services, while digital lending platforms are closing gaps for micro, small and medium enterprises. Locally backed stablecoins, meanwhile, are helping enhance domestic remittances.

The Philippine ambassador also highlighted ongoing regional initiatives such as Project Nexus, which links real-time payment systems across Singapore, India, Malaysia, Thailand and the Philippines.

“Cross-border instant payments will soon be as seamless as local transfers,” he said. “These innovations complement ASEAN’s broader vision of an interconnected regional payments ecosystem that supports inclusion, drives competitiveness and reinforces regional integration.”

FinTech Alliance founding chairman and president Lito Villanueva, who also spoke at the event, underscored that fintech’s progress over the past decade reflects the Philippines’ commitment to reform and innovation.

Villanueva said the alliance, composed of over 140 corporate members, accounts for over 95 percent of retail, digital and financial transactions in the country. “The Philippines isn’t just catching up — we’re showing up and stepping up to define the future of finance,” he said.

Both Macaraig and Villanueva stressed that beyond technology, fintech must continue to strengthen public trust, inclusion and accountability — turning innovation into a tool not only for growth, but for good governance.