Is Philippines the next FinTech Hub?

Added 3 years ago     By Jenine Jay Bufi

Ever heard of the term Financial Technology? Well, you’re hearing it now. Financial Technology, also known as FinTech is defined by Investopedia as “any technological innovation in the financial sector” that includes “advances in financial education, retail banking, investment and crypto-currencies”.

The FinTech industry is growing at a rapid rate, but it is still expected to boom. Since people around the world are seeing impressive advances in technology, the rise of this sector should not come as a surprise.

Where does the Philippines come in?

The first quarter of this year saw the Southeast Asian country rise as one of the fastest-growing economies in the whole of Asia. According to the Philippines Statistic Authority (PSA), the economy grew by 6.9 percent, quicker than China with 6.7 percent and Vietnam with 5.7 percent. CNN Philippines also reported that the GDP gain is the Philippines’ highest since 2013.

This maturing financial environment is not only seen as a result of the Philippines’ investment-driven approach; it’s also indicative of the country’s receptiveness to the rapid growth of technology and how this translates to opportunities for businesses to further develop FinTech services on its shores.

In terms of enterprises filling the gaps, the Philippines is already seeing progress.

People can now pay online anywhere with eWallets. Money transfer and payment transactions are also easier due to versatile mobile applications. And numerous companies are coming up with the latest innovations, justifying the projection that the Philippines’ e-commerce market will boom in the next five years.

The growth of mobile penetration in the Philippines enables the financial technology industry to expand and continue to draw interest from potential markets. With smartphone users expected to hit an estimated number of 27.5 million this year according to Statista, the sky is certainly the limit for those in this progressive industry.

The Philippines is poised to become the next FinTech hub. The ability of this country to continuously adapt to change and maintain its vigorous economic performance makes it a strong contender for greatness in the digital marketplace.

Texcent is an established leader in payment platform solutions. We are dedicated to delivering fully integrated prepaid mobile applications and providing an unparalleled online experience to Asia and the world.