Visa has launched a new programme in the Philippines in collaboration with infrastructure provider M2P Fintech and CTBC Bank.

The partnership aims to enable rural and thrift banks to issue both physical and digital Visa debit cards, addressing technical and regulatory obstacles previously faced by smaller banking institutions.

Under this “issuance-in-a-box” model, Visa supplies a platform through which rural banks can more efficiently and cost-effectively roll out debit card programmes.

Enrolled banks will also gain access to Visa’s risk and identity tools, including its authorisation and risk-management systems, and a dispute resolution platform.

This new programme intends to support financial inclusion by enabling banks in remote or under-penetrated areas to participate more fully in the formal banking system.

Data from the Central Bank of the Philippines indicates that rural and cooperative banks hold deposit accounts for over 24.2 million individuals, with thrift banks serving around 9.7 million.

Despite this, these banks represent a small percentage of total banking assets. The partner banks noted that rural institutions are especially important in supporting the agriculture sector, extending around 17% of their loan portfolios to it, the highest share among bank types.

Representatives from Visa said the collaboration will extend access to secure digital payments for more Filipinos.

A spokesperson for M2P Fintech highlighted that the company aims to help local banks better serve clients by integrating technology with operations support.

CTBC Bank officials noted the partnership is part of a general push to digitise underserved banking segments, particularly in agriculture and small-business banking.

The enrolment of rural banks into the programme is anticipated in the coming months.

Featured image by jcomp via Freepik.