Making PHL a fintech hub won’t need complicated tech

TRANSFORMING the country into a FinTech Innovation Hub does not need complicated technologies, according to the Bangko Sentral ng Pilipinas (BSP).

BSP Governor Eli M. Remolona Jr., in his speech at the Manila Tech Summit 2025 in Taguig City on Tuesday, said simple solutions that work for every Filipino should be prioritized by the FinTech industry.

“We like simple solutions that people can easily use. And we like secure systems that can withstand shocks and attacks. This is how we connect inclusion, security, and innovation,” Remolona said.

The BSP Governor said the first priority is making systems inclusive. Through QR PH and PalengQR PH, the BSP has made the financial system accessible to informal workers and businesses.

The QR PH and PalengQR PH has enabled tricycle drivers, market vendors, and sari-sari stores to accept online payments and not be limited to cash transactions. Along with their customers, these workers and businesses can also make payments online using their mobile phones.

Apart from being inclusive, Remolona said security is a top priority. The BSP has worked on a cyber resilience plan and the Anti-Financial Account Scamming Act (Afasa) will help prevent fraud and protect sites from cyber attacks.

Remolona said this, in turn, will help build trust in the financial system.

The latest Credit Perception Index (CPI) released by TransUnion stated that Filipinos continue to suffer from “trust issues” when accessing credit whether through traditional banks or online financial institutions.

The Philippines CPI score now stands at 73 out of 100 in 2025, only one point apart—almost flat—from the score of 74 out of 100 posted in 2024.

TransUnion Philippines President and Chief Executive Officer Peter Faulhaber said there was a slight decline in the security and safety of transacting through traditional banks.

“No matter how good or bad some of your processes are, you need to have the trust of somebody. Otherwise, they’re not going to use your product, they’re not going to borrow from you. So that’s really what’s borne out in the survey results,” Faulhaber said.

Meanwhile, Remolona said, another important aspect is to innovate to keep the financial system relevant.

This means smart technologies such as open finance, including tools like the Personal Equity Retirement Account (Pera).

“At the BSP, we like to keep things simple. We like smart innovations that solve real problems,” Remolona said.

“The BSP can’t be the only game in town. The FinTech Alliance plays a vital role. You are the builders, the connectors, the innovators. We need your help to future-proof our financial system,” he, however, said.

In his welcome remarks on Tuesday, FinTech Alliance.Ph Founding Chairman Lito Villanueva said it is important for the industry to be reminded that technology is not the one shaping the future, but humans.

Villanueva said FinTech Alliance has a framework for responsible innovations that focus on creating technology for good, for growth, for all, and for trust.

“When technology works for good, for growth, for all and for trust, it doesn’t just innovate, it transforms economies and societies. This is our moment,” Villanueva said.

“We are called to change through innovation, to evolve with technology, to lead the charge for a digital revolution. It’s time to forge a new global order, not someday, but today, here together,” he added.

Creating technology for good means solving real world problems while upholding “zero tolerance” for the misuse of digital payment platforms such as online gambling and illegal businesses.

Technology for growth means creating solutions that help support the country’s aim to become a $1- trillion economy by 2033.

Villanueva also said creating technology for all means making these solutions accessible to all Filipinos by 2028.

“Our bold vision is 80 percent of adults with digital transactional accounts and 80 percent of retail transactions done digitally. This is more than a target. It’s a movement from access to impact 80 and 80 by 2028,” Villanueva said.

Villanueva said building technology for trust means upholding integrity. He said recent events such as the exit of the Philippines from the dirty money lists of the Paris-based Financial Action Task Force (FATF) as well as the European Union are not just about compliance.

This, he said, is validation that the innovations in the country, including QR PH, open finance, and Projects Nexus and Aguila, are considered world class.

In April, Asian central banks incorporated Nexus Global Payments (NGP) to operationalize and manage the Nexus scheme for secure and instant cross-border payments. (See: https://businessmirror.com.ph/2025/04/03/asian-cbs-incorporate-nexus-global-payments/).

Project Agila aims to help the BSP and participating Financial Institutions explore and test the potential of Central Bank Digital Currencies (CBDCs), while evaluating if this technology can help improve the country’s large-value payment system. (See: https://businessmirror.com.ph/2024/12/05/bsp-fis-complete-test-for-project-agila-the-central-banks-own-digital-currency/).

“From fighting financial crime at home to leading Asean innovations on the world stage. This is the Philippines shaping the future. But again, let us be clear, we are not passengers of the future. We are its pilots,” Villanueva said.

Based on the recent TransUnion survey, FinTech use in the Philippines is at 91 percent, with survey respondents saying they are using at least one digital financial product.

The most common FinTech products are electronic wallets, with 77 percent of respondents saying they use these products, followed by online banks at 51 percent of the respondents; and digital payment apps, 47 percent.

TransUnion said 35 percent of the general population reported an eWallet as their first financial product, surpassing bank accounts at only 30 percent.

This trend, TransUnion said, is evident among younger generations, with Gen Z or those born between 1997 and 2012 at 47 percent and Millennials—born 1981 to 1996—at 37 percent being more likely to start their financial journey with an eWallet.

Gen X and Baby Boomers favored bank accounts at 40 percent and 34 percent, respectively. Gen X include Filipinos born between 1965 and 1980, while Baby Boomers are those born between 1946 to 1964.

In terms of credit perceptions, among the three population groups surveyed, FinTech users posted the highest CPI score in 2025 at 74, along with the highest level of general credit knowledge at 71 percent, outperforming both the general population and the unbanked.

Source: Business Mirror