Bixie, a financial empowerment app for women, partnered with FirstShoshin Holdings Corp. (FSHC) for the development of its upcoming features — slated for launch in the third quarter of 2022.
FSHC, a technology investment firm, will help Bixie in its plans to offer a payment wallet and a financial products marketplace on its platform through the former’s APIs (or application programming interface, which allows applications to talk to each other) and blockchain technology, said Rosalia Gitau, co-founder and CEO at Bixie. The app will likewise leverage FSHC’s Operators of Payment Systems license from the Bangko Sentral ng Pilipinas.
The collaboration provides Bixie the ability to scale its offerings to become a central access point for its users.
“Bixie’s UVP [unique value proposition] is that we are able to trigger women to start their investment journey by uniquely designing an investment journey tailored to how women interact with money,” Ms. Gitau told BusinessWorld in an e-mail.
The current tools available within the Bixie app are: a gamified learning experience on investments, savings, and budgeting; personalized calculations of one’s FIRE (Financial Independence, Retire Early) number; and a goal setting function.
Proponents of FIRE, a retirement movement, save up to 70% of their annual income with the aim of retiring early and living off small withdrawals from their savings.
Ms. Gitau said that the app also has partnerships with humanitarian organizations that help realize its financial inclusion mission. One is with the international non-profit Catholic Relief Services, which Bixie and Unionbank are partnering with on April 19 to provide capital and investments to Filipina-owned businesses.
According to the World Bank Group’s 2017 Global Findex report, more than 1 billion women still do not use or have access to the financial system.
Bixie’s user base grew to 5,000 within two months after its market launch on November 2021, Ms. Gitau said in a subsequent WhatsApp call. It has a wider community of about 12,000 members that attend both offline and online meetups.
While the vast majority of its users are Filipinas, Bixie is a global company that has plans to expand across Asia and Africa, she added.
The FSSI-Bixie partnership came about through a mutual contact, Ms. Gitau told BusinessWorld. “There was a lot of alignment in our vision…They’re strong on the technical side; we’re strong on creating a community of women interested in finance.”
In a press statement, FSHC co-chairperson Sally Ponce-Enrile said the company was “thrilled” to partner with Bixie and further its mission of providing better finance management for Filipino women.
“[We] share the vision of banking the unbanked majority. With our digital payment capabilities, we are humbled to scale Bixie’s comprehensive app and be a part of their movement to provide better ways for women to manage their money,” Ms. Ponce-Enrile said. — Patricia Mirasol
MANILA – The Philippine justice secretary pledged on Tuesday to launch an investigation after a forensic pathologist said some death certificates issued for victims of the country’s crackdown on drugs had been falsified to show they died of natural causes.
The Southeast Asian country has come under international pressure to hold a thorough probe of the more than 6,000 people killed by police since President Rodrigo Duterte launched a “war on drugs” after coming to power in 2016.
Forensic expert Raquel Fortun, who has been examining exhumed remains of drug war victims since last July, presented her findings after investigating 46 individuals who were killed in the first year of Duterte’s crackdown.
Out of the 46, in one case a death certificate was missing and for many others certificates were incomplete, Fortun told a media briefing.
Seven death certificates showed the victims died of natural cases like sepsis, pneumonia and hypertension, she said.
“You have doctors staking their reputations, names, licenses falsifying death certificates,” Fortun said. “There’s a law against this.”
Department of Justice Secretary Menardo Guevarra said his office would “investigate and prosecute those who were responsible for the falsification of the death certificates.”
“This is part of our ongoing review of the drug war campaign where deaths of suspects during law enforcement operations occurred,” Guevarra told Reuters.
Fortun’s analysis of the exhumed remains showed at least 32 of the 46 died of gunshot wounds. At least 24 of them were shot in the head.
Her findings could challenge the government’s narrative of the war on drugs.
Human rights groups accuse Duterte of inciting deadly violence and say police have murdered unarmed drug suspects on a massive scale as part of the campaign.
Police deny this, and Duterte says police are under orders to kill only in self-defense.
Asked if she saw her findings as indicating an attempt to cover up drug war deaths using false death certificates, Fortun replied: “I would not say no.”
But Fortun, who has consulted on many high-profile criminal cases in the Philippines, also believed there was an element of incompetence and underlined the need for a proper system to investigate deaths in the country.
“We don’t have a death investigation system. This is hardly taken seriously,” Fortun said. — Reuters
Summer fun continues this Easter Sunday as shoppers are in for fun treats at SM Supermalls.
Pose for the ‘gram at our Easter installations — Bring out the child in you and get lost in color amidst giant bunnies in select SM malls! Kids and kids-at-heart will love the wonderful selection of indoor and outdoor Easter displays and decorations decked in every activity center and outdoor space of their favorite SM mall. Complete with Easter eggs, bunnies, and all things sunny, SM Supermalls’ will surely brighten up your day this Easter Sunday!
Join the Summer Easter Costume Contest — Kids aged 3 to 12 years are invited to dress up in their Easter-inspired costumes and join SM Supermalls’ Summer Easter Costume Contest on April 17, 2022. What’s more, they can pose with their small and medium-sized pets and get the chance to take home 5K pesos worth of SM gift checks! Contestants will have to choose between three categories: My Pet and I, Me and My Sidekick, and My Easter OOTD.
To register for the event, scan the QR code provided by SM and submit a photo of your receipt (minimum purchase of P500.00 at any SM store or at the Summer Toy Sale event).Pre-registration for the event is still ongoing until April 15th, 11:59 PM.
1 of 10
SM City General Santos
SM Center Muntinlupa
SM Center Lemery
SM Megamall
SM City Lipa
SM City Cebu
SM CDO Downtown Premier
SM City Calamba
SM City Sta. Rosa
S'Maison
Get Creative with Arts & Crafts Activities — What’s Easter without getting crafty? From egg decorating to coloring activities in select SM Supermalls, kids of all ages and their families will get to enjoy getting their hands dirty and exploring their artistic side.
Easter Treats for your Sweets — In between these activities, you can take a break and indulge in family dining deals until April 17 in select SM malls nationwide. Have your fill of different Easter sweets and treats such as chocolates, candies, and lollipops in festive spring colors and swirls! And to satisfy your cravings, sip on something sweet to match the festive Easter mood. Enjoy a buy 1 take 1 deal, DIY milk tea kits, and discounts at the Summer Teas promo starting this April 16 to 30.
Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their stories directly on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.
Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their stories directly on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.
EURO, Hong Kong dollar, US dollar, Japanese yen, pound and Chinese 100 yuan banknotes are seen in this picture illustration, Jan. 21, 2016. — REUTERS
FOREIGN DIRECT investment (FDI) inflows declined for the first time in eight months in January, as the Omicron-driven surge in coronavirus infections and tighter restrictions dampened investor sentiment.
FDI net inflows dropped by 16% to $819 million from $975 million a year earlier, based on data released by the Bangko Sentral ng Pilipinas (BSP) on Monday evening.
It was the first annual decline in FDI inflows in eight months or since the 20.3% fall to $452 million in May 2021.
Month on month, FDI slipped by 23% from $1.1 billion in December.
“This may be due largely to investor concerns following the resurgence of cases of the highly transmissible Omicron COVID-19 variant in the country and the re-imposition of stricter quarantine measures in early January 2022,” the central bank said in a statement.
The government placed Metro Manila and some provinces under Alert Level 3 in January to curb the spread of the Omicron variant. As COVID-19 cases plunged, restrictions were eased to the most lenient level starting March.
The slump in FDIs was mainly due to the significant drop in equity capital placements during the month, the BSP said.
FDIs in equity capital plunged by 70.3% to $107 million in January from $360 million a year earlier. Placements dropped by 68.2% to $118 million, while withdrawals rose by 6.8% to $11 million.
The equity placements were mainly from Japan, the United States, the Netherlands and Malaysia. These were invested in manufacturing; electricity, gas, steam and air-conditioning; financial and insurance; and real estate industries.
Inflows to equity and investment fund shares also slumped by 58% to $184 million in January from $439 million a year ago.
Meanwhile, reinvestment of earnings dipped by 1.4% to $78 million from $79 million a year earlier.
Among FDI segments, only inflows to debt instruments recorded growth, expanding by 18.3% to $634 million in January from $536 million a year earlier.
Asian Institute of Management economist John Paolo R. Rivera said FDIs might rebound in the next few months as COVID-19 cases continue to drop and business activity improves.
“FDIs should continue to increase given the plateauing of cases, reopening of the economy and better economic prospects for the rest of the year,” he said in a Viber message.
Rizal Commercial Banking Corp. Chief Economist Michael Ricafort said the war in Ukraine might continue to hurt global investor sentiment.
“The Russia-Ukraine war could further disrupt the global supply chains, in terms of some reduction in global trade (both exports and imports), and potential drag on some investment activities as well,” he said in a Viber message.
Global oil prices have soared since Russia invaded Ukraine on Feb. 24. While the Philippines has limited trade and economic ties to Russia and Ukraine, it has been affected by the higher oil and commodity prices.
Investors will also closely watch the outcome of the May national elections.
“This (improving FDI) trend might change depending on who will win — whoever is the preference of the market. Yes, the preference of the people matters, but FDI is a function of the preference of the market and not necessarily of the people,” Mr. Rivera said.
Former Senator Ferdinand R. Marcos, Jr., the son of the country’s late dictator, remains the frontrunner in the presidential elections on May 9.
A Bloomberg survey of economists last month showed Vice-President Leonor G. Robredo was the preferred bet of investors and analysts.
“For planned investments, investors are looking at concrete platforms in the short, medium and long terms, proof of concept that policies materialize and transparency with anti-corruption and anti-red tape that will create a conducive environment for investments,” Mr. Rivera said.
The central bank last month raised its FDI projection for 2022 to $11 billion from $8.5 billion, citing the continued recovery of economic activities and the implementation of investment-friendly reforms.
FDI inflows jumped to an all-time high of $10.5 billion in 2021, rebounding from $6.822 billion in 2020. — Luz Wendy T. Noble
People arethe Paranaque Integrated Terminal Exchange in Paranaque City, April 11. — PHILIPPINE STAR/ RUSSELL PALMA
By Tobias Jared Tomas and Abigail Marie P. Yraola, Researcher
THE PHILIPPINE economy is expected to grow above 6% this year, according to revised estimates by the ASEAN+3 Macroeconomic Research Office (AMRO) and United Nations Economic and Social Commission for Asia and the Pacific (UN ESCAP) released on Tuesday.
However, the upgraded growth projections are still below the government’s 7-9% target this year.
In its latest regional economic outlook report, AMRO said the Philippines’ gross domestic product (GDP) is projected to expand by 6.5% this year, slightly higher than the 6.2% estimate given in January.
The UN ESCAP, on the other hand, said Philippine GDP is expected to grow by 6.3% this year, a tad better than the previous estimate of 6%.
The economy expanded by 5.7% in 2021.
For 2023, AMRO’s growth forecast for the Philippines is 6.5%, within the government’s 6-7% goal.
“This year, we expect growth to be improved to 6.5%, and this will be led by government spending and also the recovery in the private sector’s spending,” AMRO Chief Economist Hoe Ee Khor said at a virtual briefing. “We expect that private spending will bounce back very rapidly once the economy reopens much more fully.”
However, AMRO said the biggest threat to the Philippines’ recovery is a possible resurgence in coronavirus infections. Health experts have recently warned of a surge in cases after the May elections, citing the “waning immunity” of many vaccinated Filipinos who have not received a booster shot.
AMRO also cited companies’ solvency as a risk to the banking sector, as well as heightened capital flow volatility due to global policy tightening.
Despite this, the Philippines’ growth rate is expected to be higher than the Association of Southeast Asian Nations (ASEAN) average of 5.1% this year and 5.2% in 2023. In ASEAN, the Philippines is likely to post the fastest GDP growth this year together with Vietnam, and the second-highest growth in 2023.
The region’s growth outlook is supported by high vaccination rates, which allowed many countries to stay open despite the Omicron surge.
“Our assessment therefore is that unless a more virulent variant of COVID emerges, which is resistant to the vaccines, economies are expected to remain quite open and will recover quite strongly this year,” Mr. Khor said.
AMRO said the Russia-Ukraine war is a risk to the growth outlook, along with the recurrence of global supply chain disruptions due to COVID-19 and a sharper-than-expected monetary policy normalization in the United States.
“The ongoing Russia-Ukraine conflict is expected to have a limited impact on the region’s GDP growth in 2022 given regional economies’ small exposure to the two economies engaged in the conflict. An escalation and prolongation of the conflict would, however, pose a downside risk to growth,” it added.
AMRO said Philippine inflation is expected to accelerate to 4.1% in 2022 from 3.9% in 2021. This is lower than the Bangko Sentral ng Pilipinas (BSP) inflation projection of 4.3%, but above the 2-4% target. Inflation is expected to ease to 3.5% by 2023.
Mr. Khor said it is unlikely for the central bank to tighten policy rates soon, citing a negative output gap and modest consumer demand. “We do not see an urgent need to raise the policy rate.”
Mr. Khor also said the central bank should begin withdrawing some of it’s policy stimulus, “as the economy continues to gain traction and growth continues to recover.”
HIGHER GROWTH Meanwhile, the UN ESCAP’s upgraded 6.3% growth projection for the Philippines this year is the second highest in Southeast Asia, after Vietnam’s 6.5%.
In its report entitled Economic and Social Survey of Asia and the Pacific 2022: Building Forward Fairer, UNESCAP also projected a 6.7% GDP growth for the Philippines in 2023.
The revised projections are above the UN ESCAP’s regional growth forecast of 5% this year and 5.2% in 2023.
“The slight upward revision for the Philippines is based on an assessment that domestic demand will strengthen with easing restrictions and reopening of borders, which will benefit the service sector,” UN ESCAP Director of Macroeconomic Policy and Financing for Development Division Hamza Ali Malik said in an e-mail.
“While trying to understand changes in GDP forecasts for 2022 and 2023, it is important to understand and acknowledge the sheer scale of uncertainty faced by economies,” Mr. Malik said.
He noted that the Philippines has not completely recovered from the pandemic when the Russia-Ukraine war began in late February.
The economy may benefit from the reopening of borders around the world, allowing more Filipinos to work abroad and send more money that will support domestic consumption, Mr. Malik said.
Fiscal expenditures, on the other hand, are expected to continue to support growth through large infrastructure projects.
Meanwhile, UN ESCAP said Philippine inflation is projected to average 3.3% this year from 4.5% in 2021. For 2023, inflation is estimated to average 3%.
“Inflation has been modest in the first few months of 2022 but the recent surge in global oil and commodity prices due to the Russia-Ukraine conflict is likely to add to price pressures. As long as inflation remains within the central bank target range, monetary policy can remain accommodative to support recovery,” Mr. Malik said.
Risks to the growth outlook for the Philippines include new coronavirus variants, renewed lockdowns and slower export growth due to the ongoing Ukraine war, he added.
Motorcycle riders queue at a gasoline station along España Boulevard in Manila, March 15. — PHILIPPINE STAR/ MIGUEL DE GUZMAN
INFLATION could breach the central bank’s 2-4% target in the second half due to the surge in global oil prices, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said on Tuesday.
“Inflation is seen to settle above the target range in the second half of 2022 due to elevated global oil and nonoil prices as well as positive base effect,” he said at an online briefing.
“Subsequently, inflation is projected to decelerate back to within the target in the first quarter of 2023, before steadily decelerating in the remaining quarters of 2023 as oil and nonoil prices are expected to taper off,” he added.
Headline inflation quickened to 4% in March from 3% in February, matching the upper end of the BSP’s 2-4% target. This was driven by the impact of the Russia-Ukraine war on oil prices.
At its March 24 meeting, the BSP raised its inflation forecast for 2022 and 2023 to 4.3% and 3.6%, respectively, taking into account higher oil and commodity prices.
Inflation breached the 2-4% target in 2021, when it accelerated to 4.5% from 2.6% in 2020 due to low pork supply.
The BSP’s decision to keep rates at record lows was done considering “recovery is still at its nascent stage” and the economy is still below its full capacity, central bank officials said.
“In our assessment, we would be reaching 2019 gross domestic product (GDP) levels by the second half of this year,” BSP Department of Economic Research Managing Director Zeno Ronald R. Abenoja said.
“It’s not strong enough to really push inflation. It’s really the supply side factors that are really influencing the inflation that we are seeing right now and over the near term,” he added.
However, there are growing calls to hike transport fares and minimum daily wages.
“Given the potential broadening of price pressures over the near term, the BSP stands ready to deploy timely and appropriate monetary policy measures, in line with its price and financial stability mandate,” Mr. Diokno said.
The central bank’s next policy meeting is on May 19.
In a separate note, ANZ Research Chief Economist for Southeast Asia and India Sanjay Mathur and economist Debalika Sarkar said they now expect the central bank to raise interest rates by 125 basis points (bps) this year from 25 bps previously.
It said the BSP would likely start hiking by 25 bps in June, which will be followed by similar moves at their Aug. 18, Sept. 22, Nov. 17, and Dec. 15 meetings.
“We think these [inflation] risks are not trivial, given the limited fiscal intervention to control oil prices as well as a probable increase in firms’ pricing power,” the analysts said.
They said broader policy actions might be warranted to address the surge in oil prices, such as the suspension of taxes on fuel products.
The government has rejected calls to halt the collection of excise taxes on fuel products, and instead provided fuel subsidies to the transport and agriculture sector.
“However, concerns over potential revenue loss and consequent deterioration of fiscal health have taken precedence, particularly when the government is walking a tightrope on fiscal targets,” ANZ analysts said. — Luz Wendy T. Noble
MANILA — The Philippines has raised 70.1 billion yen ($559 million) from an offering of four-tranche Samurai bonds, fixed-income news provider IFR reported on Tuesday.
A five-year tranche raised 52 billion yen and was priced with a 0.76% coupon, while a seven-year portion raised 5 billion yen with a 0.95% coupon, it said.
An offer of 10-year bonds raised 7.1 billion yen at 1.22% coupon, and a 20-year tranche raised 6 billion yen at 1.83% coupon, IFR said. — Reuters
VOYAGER Innovations, Inc. said on Tuesday it had raised an additional $210 million in its latest funding round, boosting its valuation to “unicorn plus status” at around $1.4 billion.
PLDT, Inc., the company’s main shareholder, told the stock exchange Voyager would use the fresh funds to launch its Maya Bank services and offer new products such as cryptocurrency, micro-investments and insurance.
Maya Bank’s services, such as savings and credit, would be offered through the PayMaya platform, it added.
The investment round was led by new investor SIG Venture Capital, the Asian arm of Susquehanna International Group, LLP; Hong Kong-based First Pacific Co., Ltd.; and Singapore-based global investor EDBI. PLDT is a unit of First Pacific.
Existing shareholders PLDT, KKR, China’s Tencent, International Finance Corp. (IFC) and two funds managed by the IFC Asset Management Co. also participated in the round.
“With this milestone, we are excited to leap forward and bring the best of PayMaya and Maya Bank to help unlock the digital economy for the underserved and unbanked Filipinos,” Voyager and PayMaya Chief Executive Officer and founder Orlando B. Vea said in a statement.
PayMaya , which recently introduced cryptocurrency through its e-wallet application, had more than 47 million users across its consumer platforms as of end-March.
Voyager secured a digital banking license for Maya Bank in September. Pilot testing started in March.
Shailesh Baidwan, Voyager and PayMaya president, said the company plans to introduce “more game-changing innovations” as it addresses pent-up demand for financial services in the country.
Regina Capital Development Corp. Equity Analyst Anna Corenne M. Agravio said in a phone message the fundraising round means that Voyager’s expansion plans are in “full swing.”
Voyager “will be able to more efficiently tap into the unbanked sector through Maya Bank,” she added.
Voyager directly competes with Globe Fintech Innovations, Inc. (Mynt), operator of mobile wallet company GCash. However, Mynt is not planning on operating a digital bank.
“Both Voyager and Mynt have very aggressive expansion plans; both are looking to tap several aspects of financial markets. Cryptocurrency seems to be the talk of the town nowadays, so Voyager’s planned venture into this scene will likely be beneficial,” Ms. Agravio said.
The critical factor is whether PayMaya “will be able to turn a profit soon, since GCash seems to be ahead of it in that aspect,” she added.
“The more platforms you have, the more you are ahead of the pack,” First Grade Finance, Inc. Managing Director Astro C. del Castillo said in a phone interview.
“As long as you are ahead of the pack, you will eventually generate revenues,” he added.
PLDT shares closed 1.53% lower at P1,800 apiece on Tuesday.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.
Conrad Manila celebrates one of its own with an exhibit
IT BEGAN with a white wall in the attic of his old home where Stephen Ozo would paint murals and explore the use of color with the small pints of paint he’d purchased. But nobody knew about it.
It was only in June 2021, when the country was under lockdown because of the coronavirus disease 2019 (COVID-19) pandemic, that Mr. Ozo presented his work on his social media accounts. His friends and colleagues began to commission paintings from him.
From working in his attic, he is now holding his first solo exhibit at the Conrad Manila hotel where he works as the assistant front office manager.
The 18th exhibit in the “Of Art and Wine” series at the hotel’s gallery C features a 24-piece collection of the artist’s paintings, which were created amid the global pandemic. The exhibit is titled “positive | negative.”
Born and raised in Baguio City, Mr. Ozo is a self-taught artist whose passion for painting kept him busy during the lockdown.
Conrad Manila’s PR consultant Zeny Iglesias told exhibition curator Nestor O. Jardin about a hotel employee who paints. Mr. Jardin then requested to meet with Mr. Ozo and view his portfolio prior to deciding whether to include him in the hotel’s exhibition program.
After the meeting, Mr. Jardin concluded that the artist still needed to “work on his focus on his subjects, improve his color palette, and continue painting.”
The artist worked to find his style on days when he was off duty from work.
“That [feedback] pushed me. That gave me an opportunity to find my style,” Mr. Ozo told members of the press at the exhibit launch on April 5. “Eventually through the painting I was doing for my colleagues; I was finding my style.”
Dramatic, life-changing events over the past two years — the successive demise of his parents, brother, and cousin —provided the impetus to develop his art.
“[It was] one way for me to cope with all my emotions. I think it was a good output,” Mr. Ozo said.
He works with acrylic paint and mixed media, with subjects ranging from flowers and wildlife, to human figures and women’s portraits against abstract backgrounds. As a signature to his work, Mr. Ozo said that he accents the canvas with gold and white bars “represent balance, purity, and balance.”
In the latter months of 2021, Mr. Jardin reevaluated Mr. Ozo’s works.
“I looked at photos of his recent artworks, and I was pleasantly surprised. He has improved a lot. I think he was beginning to find his focus. His color palette and his brush strokes improved,” Mr. Jardin said. “Artists usually find their artistic philosophy through some life changing experiences.”
Following his first solo exhibition, Mr. Ozo hopes to continue honing his craft for future opportunities as an artist.
“I’m already thinking in my head how to plan the next series of works that I’m doing,” Mr. Ozo said. “This opportunity [leads to] other opportunities to meet more artists, young and old artists, and masters.”
Mr. Ozo is currently working on improving his skills in portraiture.
“I can sketch a beautiful face but once I paint them, it changes. So, I’m practicing portraits at the moment, which I will incorporate in my future paintings,” he said.
“Of Art and Wine: positive | negative”will be on exhibit until June 11 at Gallery C. The works are available for purchase. For more information, call 8833-9999, or e-mail conradmanila@conradhotels.com. View the digital brochure of the artworksat http://bit.ly/OAAWPositiveNegative. — Michelle Anne P. Soliman
A PRIEST hears confession during Lent in this English manuscript.
A PRIEST hears confession during Lent in this English manuscript.
THE 14th century is known for catastrophe. By midcentury, the first wave of plague spread through a Europe already weakened by successive famines and the Hundred Years War between England and France. And crises just kept coming. After the first wave, which has come to be called the Black Death, the disease returned at least four more times before 1400. All the while, fresh conflicts kept erupting, fueled in part by the rising number of soldiers available for hire.
As a medieval historian, I study ways that community leaders used Catholic practices and institutions to respond to war and plague. But amid the uncertainty of the 14th century, some Catholic institutions stopped working the way they were supposed to, fueling frustration. In particular, the unrelenting crises prompted anxiety about the sacrament of penance, often referred to as “confession.”
This uncertainty helped spark critics like Martin Luther to ultimately break from the Catholic Church.
During this era, European Christians experienced their faith predominantly through saints and sacraments.
In art, saints were depicted as standing near God’s throne or even speaking into his ear, illustrating their special relationships with him. Pious Christians considered saints active members of their communities who could help God hear their prayers for healing and protection. Throughout Europe, saints’ feast days were celebrated with processions, displays of candles, and even street theater.
Fourteenth-century Christians also experienced their faith through Catholicism’s most important rituals, the seven sacraments. Some occurred once in most people’s lives, including baptism, confirmation, marriage, and extreme unction — a set of rituals for people who are near death.
There were two sacraments, however, that Catholics could experience multiple times. The first was the Eucharist, also known as Holy Communion — the reenactment of Christ’s Last Supper with his apostles before his crucifixion. The second was penance.
Catholic doctrine taught that priests’ prayers over bread and wine turned those substances into the body and blood of Christ, and that this sacrament creates communion between God and believers. The Eucharist was the core of the Mass, a service which also included processions, singing, prayers, and reading from the Scriptures.
Religious Christians also encountered the sacrament of penance throughout their lives. By the 14th century, penance was a private sacrament that each person was supposed to do at least once a year.
The ideal penance was hard work, however. People had to recall all the sins they had committed since the “age of reason,” which started when they were roughly seven years old. They were supposed to feel sorry that they had offended God, and not just be afraid that they would go to hell for their sins. They had to speak their sins aloud to their parish priest, who had the authority to absolve them. Finally, they had to intend to never commit those sins again.
After confession, they performed the prayers, fasting, or pilgrimage that the priest assigned them, which was called “satisfaction.” The whole process was meant to heal the soul as a kind of spiritual medicine.
Waves of plague and warfare, however, could disrupt every aspect of the ideal confession. Rapid illness could make it impossible to travel to one’s parish priest, remember one’s sins or speak them aloud. When parish priests died and were not immediately replaced, people had to seek out other confessors. Some people had to confess without anyone to absolve them.
Meanwhile, Europe’s frequent wars posed other spiritual dangers. Soldiers, for example, were hired to fight wherever war took them and were often paid with the spoils of war. They lived with the constant weight of the commandments not to kill or steal. They could never perform a complete confession, because they could never intend not to sin this way again.
These problems caused despair and anxiety. In response, people turned to doctors and saints for help and healing. For example, some Christians in Provence, in present-day France, turned to a local holy woman, Countess Delphine de Puimichel, to help them remember their sins, protect them from sudden death, and even leave warfare to become penitents. So many people described feeling consoled by her voice that a medical doctor who lived near the holy woman set up meetings so people could hear her speak.
But most people in Europe did not have a local saint like Delphine to turn to. They looked for other solutions to their uncertainties about the sacrament of penance.
Indulgences and Masses for the dead proved the most popular, but also problematic. Indulgences were papal documents that could forgive the sins of the holder. They were supposed to be given out only by the pope, and in very specific situations, such as completing certain pilgrimages, serving in a crusade, or doing particularly pious acts.
During the 15th century, however, demand for indulgences was high, and they became common. Some traveling confessors who had received religious authorities’ approval to hear confessions sold indulgences — some authentic, some fake — to anyone with money.
Catholics also believed that Masses conducted in their name could absolve their sins after their death. By the 14th century, most Christians understood the afterlife as a journey that started in a place called Purgatory, where residual sins would be burned away through suffering before souls entered heaven. In their wills, Christians left money for Masses for their souls, so that they could spend less time in Purgatory. There were so many requests that some churches performed multiple Masses per day, sometimes for many souls at a time, which became an unsustainable burden on the clergy.
Nicole Archambeau is an Associate Professor of History in the Colorado State University.
The popularity of indulgences and Masses for the dead helps scholars today understand people’s challenges during the Black Death. But both practices were ripe for corruption, and frustration mounted as a sacrament meant to console and prepare the faithful for the afterlife left them anxious and uncertain.
Criticisms of indulgences and penance were a focus of reformer Martin Luther’s famous “95 Theses,” written in 1517. Though the young priest did not originally intend to separate from the Catholic Church, his critiques launched the Protestant Reformation.
But Luther’s challenges to the papacy were not ultimately about money, but theology. Despair over the idea of never being able to perform an ideal confession led him and others to redefine the sacrament. In Luther’s view, a penitent could do nothing to make satisfaction for sin, but had to rely on God’s grace alone.
For Catholics, on the other hand, the sacrament of penance stayed much the same for centuries, although there were some changes. The most visible was the creation of the confessional, an enclosed space within the church building where the priest and the penitent could speak more privately. The experience of penance, especially absolution, remained a central ritual meant to heal Catholics’ souls in times of trouble, from the Black Death to the COVID-19 pandemic today.
Nicole Archambeau is an Associate Professor of History in the Colorado State University.