FINANCIAL ACCESS across provinces has remained unchanged over the last two years, leaving bulk of Filipinos without any means to tap formal banking channels, according to an industry report published by digital platform FINTQnologies Corp.

“In majority of the provinces, access to banks and their financial services remains unchanged over time,” the financial technology firm said in its Inclusive Digital Finance Report released yesterday.

FINTQ, a subsidiary of PLDT Inc., said financial access in 75 of 81 provinces stood steady between 2015 and 2017, pointing out that these areas remained unbanked during the period.

The report noted that 97% of total domestic loan volume in 2017 came from 23 wealthier and more developed provinces, unchanged from the lion’s share recorded two years ago.

On the other hand, FINTQ said Filipinos based in the provinces who are looking for formal lending opportunities are now turning towards digital channels in the absence of bank branches.

Using data from FINTQ’s online loan marketplace Lendr, seven out of 10 users of digital lending portals come from outside Metro Manila, with a fifth of the borrowers coming from third to fifth-class municipalities.

“Financial technology or FinTech has the potential to drive financial inclusion in low-access areas, as majority of the financial resources are heavily concentrated in Metro Manila. Our findings noted a positive correlation between financial access and internet penetration,” the report added.

In particular, borrowers from Metro Manila took an average share of 86.7% of total domestic loans between 2001 to 2017, while the measly remainder is split among borrowers from all over the provinces.

FINTQ yesterday launched the KasamaKa platform which serves as a digital referral system that invites more Filipinos to tap digital banking rather than resort to informal and black-market transactions.

The private sector-led initiative mirrors plans of the Bangko Sentral ng Pilipinas under the National Retail Payments System, which aims to steer financial transactions gradually away from cash and checks towards electronic fund transfers and e-wallets.

The central bank is looking to raise the share of e-payments from 1% of total transactions in 2013 to a high of 20% by 2020, which is seen to fast-track the availability of funds circulating in the local economy.

Hastings Holdings, Inc. — a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc. — has a stake in BusinessWorld through the Philippine Star Group, which it controls. — Melissa Luz T. Lopez

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