Department of Information Communications Technology (DICT) Asec. Manny Caintic affirmed that the national line agencies are more comfortable about its adoption now, compared to its apprehensions about security years ago, and said it is more efficient currently to implement the cloud-first policy. The digitalization of our internal systems as a future fintech leader in Asia has seen the need for infrastructures that support such initiatives on a nationwide scale. 

As Anna Lamentillo, the Chairman of the Department of Public Works and Highways’ (DPWH) Build Build Build Committee says, “We use roads not just to bridge people together but also to support high-speed internet. The master plan is for Facebook to utilize the infrastructure and, in turn, they will provide P2 million for the government’s initiative.”

The talk also highlighted that by 2021, 83 major cities can expect free wi-fi connectivity and cloud-first access. The cloud-first policy hopes to encourage government agencies to adopt cloud-based systems to heighten their efficiency and foster real-time collaboration via data sharing. National ICT Confederation of the Philippines (NICP) CEO Michael Lim shared the organization’s deep collaboration with the DICT in order to push forward the implementation of these initiatives, especially with the continuously growing BPO sector that can attribute a third of its jobs from the NICP councils. 

Monchito Ibrahim, incoming head of the Philippine Association for Digital Commerce and Decentralized Industries (PADCDI), shared that the beginning stages of this effort can be traced back to the implementation of the Dep-Ed Internet Connectivity Project a decade ago, stamping e-commerce as the next frontier and initiating the ideals in security and transparency that lead the new initiatives today. With all of these combined efforts, each collaborator aims to create accessibility to thousands of Filipinos and successfully digitize the Philippine countryside.

Central Bank to Shift 50% of Retail Payment to Digital

According to Bangko Sentral ng Pilipinas (BSP) Director Mel Plabasan, its Digital Transformation Roadmap, which was recently introduced, ushers in a whole-of-society approach to democratize financial services, initially targeting to shift 50% of retail payment to a digital form, and 70% of Filipino adults to have access to their own transaction accounts.

This was the highlight of the second panel on the second day entitled “The Legal and Regulatory Framework: Fintech’s Lifeline to Global Competitiveness,” moderated by Ida Tiongson, CEO – President, OPAL Portfolio Investments (SPV-AMC). 

 “Securing financial and data security is our mission, there must be a tight grip on how development is made,” said tech attorney Mark Gorriceta, Managing Partner of Gorriceta, Africa, Cauton, and Saavedra. “We also have some of the highest internet penetration, and when we combine these with the changes happening we can see the Philippines is at par with some of the most prominent fintech markets. We’re at the forefront of these emerging technologies.”

Securities and Exchange (SEC) Commissioner Ephyro Amatong reminded that, “Regulation is necessary to promote sustainable growth when dealing with innovation. One of the primary lessons we learned in past economic crises is that regulations help to keep things in order and will help keep distribution of wealth and financial opportunities.”

Addressing the interest in a deeper collaboration between public and private sectors, JustPayto CEO Gemma Guerrero, said, “Hopefully, the government can help to put mandates in place that will allow tech, like cashless transactions, to really help the population to pivot with the necessary changes due to COVID-19. From 200 fintech companies we can see how the regulation can evolve from there.”

6 Years of Organic E-Commerce Development Compressed by the Pandemic to Just 6 Months

According to DragonPay CEO Robertson “Dick” Chiang, studies have shown that about 80-90% of people have already adapted to online living.  The country currently has 159% mobile penetration and only in the last month, 76% of adult internet users did at least one online purchase, and 66% bought items using a mobile device. 

New business models have adapted to take advantage of these new technologies. What remains now is for the government to put the right policies in place to ensure sustained growth. These industry-changing trends were tackled in the last panel for the day, “Setting Up the Infrastructure for the Day – The Rise of E-commerce.” PADCDI Founding Director Jayjay Viray moderated the panel.

“It’s a sunrise industry and if you join it now with this new digital economy, you can be part of this new value chain with a career for the next several decades,” explained Great Deals Co-founder and CEO Steve Sy.

“For all retailers in general, if you had a storefront you had an advantage, because you had a following,” said Victor Paterno, President of 7-Eleven Philippines, in regards to established businesses adapting to the online platforms. “But now that’s why online grocery makes sense to us as an e-commerce product because it’s the most logistically challenging.”

“Investors will still go to our neighbors in Asia before us, like Thailand or Malaysia. But with our population we are soon going to be in the running,” continued Sy. “We can look at these other countries and see it as a crystal ball into what we can look forward to.”

As Fintech leadership moves to Asia, the Philippines has strong potential to emerge among its central players. This was one major analysis that surfaced at the first panel of the day entitled “Fintech Growth: Powering Up Cities, Communities, and The Entire Country.” 

Various industry leaders who spoke in the panel were Bangko Sentral ng Pilipinas (BSP) Director Melchor Plabasan, Ayala Corporation CFO TG Limcaoco, Finnovation Co-founder and Chairman Malik Kotadia, senior digital financial advisor John Owens, and WFF-Philippines convener Amor Maclang. The moderator was British Chamber of Commerce Chairman Chris Nelson.

Mr. Kotadia described the turning tide of change, “There was a time that when fintech was mentioned, London was the hub of that world or people thought of Silicon Valley. But now the pivot is shifting to Asia, which is the next group engine for fintech.”  

Mr. Owens described how he had seen this shift come to the Philippines, with its fintech sector’s stride into e-money, data sharing, and data privacy showing why it is the inarguable champion for innovation in Asia: “The Philippines as a leader, is the chair of ASEAN working group. The Philippines has one of the best central banks—the BSP–to join the region, and they continuously foster collaboration among regulators.”   

The success and strategies of Philippine institutions like BSP and Gcash were studied and adopted by M-PESA, the African-based mobile phone-based money transfer service. 

Mr. Kotadia added that the Philippine customer base—which is one of the largest internet and social media users in the world—” is more than ready than ever before for fintech to rise in Asia.”

Mobile Wallet is New King, as GCash Hits P1-T Annual Transactions

The Philippines’ transition to a truly cashless society is well underway, as leading mobile wallet GCash hit P1 trillion transaction value this year. This was even more than the cumulative gross value it had accomplished from 2017 to 2019. Martha Sazon, President and CEO of Mynt (GCash), said safety protocols and limited mobility during the pandemic have changed the conventions of financial transactions, paving the way for a frictionless, cashless future. 

“We are used at least twice a day, every day. But now, we registered 1000% transaction growth in relevant use cases. We even hit a P1 trillion transaction value – which goes to show how much we’ve helped Filipinos. This was our vision for 2023, yet this was brought to life this year,” Sazon announced in the Panel: “Banks and FinTech: The Advantages that Mass Adoption Brings to the Public.” Joining her in the panel were UnionBank Fintech Business Group Head Arvie De Vera, UNO Bank Co-Founder and CEO Manish Bhai, Tonik Chief Technology Officer Arivuvel Ramu, Binance Director Colin Goltra, and Pera Hub President and CEO Ian Ocampo.

Ocampo said the digital economy is changing the way people do business and live their everyday lives. “What we will see is a radical shift to neo-banking. More startups will be able to bring in fintech advancements, which will benefit the nation as a whole. What will boost this further is the collaboration with the government.”

Debunking Disadvantages with Women in Tech

The tech world isn’t a boy’s club anymore. With many Filipinas establishing their names and taking up space in the tech scene, women in senior positions prove that gender stereotyping is now a thing of the past.

Mynt’s Chief Technology & Operations Officer Pebble Sy-Manalang identified one possible root cause of gender stereotyping in the Philippine tech space: the gap in the labor force starts in education with the misconception that STEM is only fit for men.” Manalang debunked the misconception that men are more productive than women citing that the latter’s childbearing hinders career productivity.

Manalang was joined by Impact Hub’s Asia Pacific Regional Lead Ces Rondario, Apptitude’s Chief Investment Officer Josephine Romero, and AHEAD Education Technologies Founder Rosanna Llenado. All of them agree that the key to nourishing more women in higher positions is by providing a mentorship program that is anchored on sincere willingness to listen to the needs of women leaders; provide sincere career advice, and allocate time for consultations on friendly ground. 

“If you want to see more women in the leadership position, it is important to have support among them,” Manalang emphasized.

For Romero, the glass ceiling in the tech industry has long been broken as a group in the ‘90s tagged as “WIT” or Women in Tech who introduced ATMs and set up computers in school. “I remember how the misconception that tech is just for men wasn’t even discussed. This was the kind of mentorship I try to pass on to people I work with. We brought this mentorship in ASEAN as an example to our fellow entrepreneurs in ASEAN and to show that we are using tech to evolve, step ahead, and make it efficient resources-wise.”