Philippine banking infrastructure provider Higala has closed a US$4 million seed funding round to expand digital services for rural banks and microfinance institutions.

Investors in the round include Talino Venture Studios, Chemonics International, Kadan Capital, Tenco Capital, and 1982 Ventures.

According to Higala Chairman Jamey Butcher, the round was expanded from an initial target of $2.8 million due to increased investor interest in the firm’s solutions.

The funding aims to accelerate the financial inclusion capabilities of SynerFi, an open payments platform designed to reduce barriers for smaller financial institutions participating in the InstaPay network.

“We are proud of this monumental milestone for Higala that will help bring… growth to financial institutions and their customers in places bereft of digital enablement,” said Higala Founder and CEO Winston Damarillo.

Current banks onboarded to SynerFi include the Rural Bank of San Antonio, Rural Bank of Lipa City, Progressive Rural Bank, and Banco Abucay, among others.

The platform’s expansion comes as regulatory changes shape adoption.

Under Bangko Sentral ng Pilipinas (BSP) Circular No. 1140, banks must implement automated, real-time fraud monitoring to join instant payment networks, posing a technical challenge for smaller institutions.

“SynerFi by RCBC powered by Higala continues to demonstrate its promise to drive financial access beyond urban areas,” said Lito Villanueva, Executive Vice President at Rizal Commercial Banking Corporation (RCBC).

Butcher remarked that SynerFi is part of a wider global movement to empower underserved populations via technology, rather than just a local breakthrough.

Featured image: Edited by Fintech News Philippines based on images by fanjianhua via Freepik and Higala.