Fintech capacity building is necessary for MSMEs
THERE is a need to build the capacity of small and medium-sized enterprises (MSMEs) on financial technology (fintech) to boost the digital economy in the Philippines, the top official of the Philippine Economic Zone Authority (PEZA) said.
“Of course, many PEZA locators have already engaged Philippine fintech companies to take advantage of our world-class technology talent and for the necessary sustainability and global competitiveness. However, there are also locators, especially MSMEs, that need capacity building on fintech,” PEZA said -Director General Tereso Panga during the event called “Philippines: The Digital Bridgeway to the Asean (Association of Southeast Asia Nations) and the World” at the PEZA office in Pasay City on Saturday.
According to the latest statistics of ResearchAndMarkets, the B2C (business to consumers) e-commerce market in the Philippines is expected to grow by 15.44 percent year-on-year to reach $14.2 billion in 2023.
This expansion of e-commerce in the Philippines will thus require MSMEs to adopt fintech for faster and convenient online transactions. This provides opportunities for fintech companies to offer various services to Philippine businesses.
“In the digital space, a wide range of financial services such as cross-border payments, bill payment, e-banking, e-wallet, metro card top-up and purchase of cryptocurrencies etc. allow fintech companies to encourage people to engage in economic activities on because of the convenience such services provide – enabling millions of online and mobile transactions in the process,” Panga said.
Meanwhile, to help address the need for capacity building of MSMEs, Panga said PEZA has partnered with Astrolabe-Digital Pilipinas, the largest private sector-led movement that champions nascent technologies and cross-border collaborations to improve technology in the country,
“We have partnered with Astrolabe and Digital Pilipinas for the continuous improvement and stakeholder capacity building initiative on financial services that will eventually be integrated into the Philippine financial systems and platforms,” Panga said.
Amor Maclang, the convener of Astrolabe-Digital Pilipinas and PEZA’s investment promotion partner, said they were ready to help boost fintech adoption in the country.
“We are ready to step it up a notch by upgrading our workforce with the knowledge and skills to tackle fintech, AI (artificial intelligence), web3, blockchain, e-commerce and other emerging technologies,” she said.
Panga is also optimistic that capacity building for MSMEs will be achieved considering that the country has a large number of people connected to the internet.
“The Philippines, with 76 million plus internet users and digitally savvy young workers, is positioned to benefit from the growth of the fintech industry. With a total population of 111.8 million as of January 2022, and internet penetration at 68 percent of the population and growing, and not to mention, our unique distinction as the ‘Text Capital of the World’, the country can achieve a digital economy ahead of any of its Asean neighbours. And this is doable,” he said.
