The financial technology (FinTech) sector has grown by leaps and bounds in recent years, owing to the Philippines’ vibrant startup community and strong economic fundamentals. Advances in digital technology and the pursuit of rapid digital transformation have spurred the growth of the financial industry, making the country a hotspot for innovation in this exciting field.

The Philippines is well positioned to be a leader in the digital world. In fact, the Tholons Services Globalization Index 2017 ranked the Philippines as third in the Top 50 “Digital Nations”.  Key drivers such as a growing digital savvy generation, an expanding middle class, wide coverage of mobile and Internet, and an enterprising startup culture could very well propel the country towards a new era.

Yet, there is much untapped potential in the fintech ecosystem. According to the BSP’s Financial Inclusion Survey 2017, only 23% of Filipino adults have a formal bank account. In addition, only 48% of adults save, but seven in ten savers keep their savings at home. Of the 22% of Filipino adults who avail loans, four in ten do so through informal sources.

A report by The Better Than Cash Alliance in 2019 also found that two out of three Filipinos are financially excluded from traditional financial systems, and thus do not own a digital wallet or digital bank account. This is despite the fact that the volume of e-payments usage in the country has increased to 10% of total transactions in 2018 from barely making up 1% in 2013.

It is clear that even as the fintech ecosystem evolves, challenges such as limited financial literacy and low financial inclusion still remain. There is a need for the Philippines to address these gaps in order to keep pace with their regional peers and accelerate growth in the fintechspace.

Taking steps towards digital transformation

With the Philippines on the cusp of digital transformation, embracing payments technology can drive innovation and tap into its digital potential. Digital payment solutions, for instance, can ease the transition from a cash-and-check dependent financial system into a more efficient and frictionless society.

Companies such as Wirecard have been working with customers and partners to drive their digital transformation strategies. As a global innovation leader in digital financial technology, the German-based company offers both businesses and consumers with a growing ecosystem of innovative digital payments: online, mobile, and at the point of sale. Their digital financial commerce platform provides a full range of end-to-end products that enables global payment acceptance. This allow companies to issue their own payment instruments and provide digital banking, commerce services and convenience to their customers.

Utilizing Wirecard’s technologies can help fast-track financial inclusion in the Philippines, as it empowers both SMEs and consumers with the digital payment capabilities necessary to unlock its digital potential and compete in today’s world.

Over the past decade, digital payments have changed the way businesses operate. Businesses are leveraging digital sales incentives in the form of physical or virtual prepaid cards to motivate their sales team, driving higher performance. For example, Wirecard’s Sales Incentive Card is a cashless solution that increases the effectiveness and engagement of the sales force by providing convenience and security to business owners, enabling them to pay and reward their sales team in real-time and increase productivity.

Additionally, the cards can be used in a wide range of industries. Cardholders can use the contactless cards to carry out seamless transactions at point-of-sale and online, and can manage their cards easily via the Wirecard Payout online portal.

With such innovative, easily accessible, and efficient digital payment solutions, more SMEs and consumers have the opportunity to benefit from digital transformation. This can mark a turning point in the country’s economic development, and contribute to building a better, and more financially inclusive society.

Learn more about Wirecard’s Sales Incentive Card here.

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