In a strategic move to position itself as a technology-enabled bank in the nation, Security Bank is significantly increasing its investment in information technology (IT) and human resources (HR). The bank’s President and CEO, Sanjiv Vohra, emphasised the importance of this initiative in a statement to The PhilSTAR, highlighting that, “We are in a multi-year phase of investments in technology and people to improve customer experience and prepare us for future growth,” The bank’s expenditure on technology, relative to its total revenue, has reached 12.6% in the period from January to September of the previous year. This financial commitment is…

The Bangko Sentral ng Pilipinas (BSP) and the Bankers Institute of the Philippines (BAIPHIL) have recently strengthened their collaboration. At the BSP Head Office in Manila, the two institutions signed a memorandum of understanding (MOU), marking a new chapter in their longstanding partnership. BSP Governor Eli M. Remolona, Jr. emphasised the importance of this collaboration, stating, “The collaboration of BSP and BAIPHIL will go a long way in reaching out to our common stakeholders by providing support to banks toward productivity enhancement through research, information exchange, and education.” Echoing these sentiments, BAIPHIL President Racquel B. Mañago highlighted the objectives of…

Blockchain-enabled financial services platform Coins.ph has recently announced its expansion into the Australia market, slated for 2024. This announcement follows the company’s Australian division successfully securing a Digital Currency Exchange registration from the Australian Transaction Reports and Analysis Centre (AUSTRAC), a prerequisite for providing cryptocurrency exchange services in Australia. This strategic move marks a significant step in Coins.ph’s commitment to extending its international footprint and enhancing the availability of regulated and compliant digital asset services. Wei Zhou, CEO of Coins.ph, commented, “Coins.ph is primed for global expansion. Our journey began nearly a decade ago in the Philippines, and since then,…

The International Finance Corporation (IFC), a member of the World Bank Group, has recently set forth a proposal to invest US$7 million in Fintech Holdings Ltd, which operates three of its subsidiaries under the brand name Salmon in the Philippines. According to an IFC investment disclosure notice, Salmon utilises next-generation technology and data-driven strategies to enhance the accessibility and convenience of financial services “by offering a wide range of credit and deposit products, which will include cash loans, revolving credit lines, point-of-sale financing, credit cards and debit cards”. The proposed investment of up to US$7 million in equity by IFC…

Rural bank Netbank has recently established a partnership with Sprout Solutions, a HR and payroll software provider in the Philippines. This joint venture introduces a new salary advance service, designed to enhance the employee benefits arena. The new service dubbed Instacash will feature Sprout’s payroll software with NetBank’s platform, aiming to address the inefficiencies found in traditional salary advance procedures, and simplify the loan application process for employees, making it more user-friendly. Netbank, which is operating with a full banking license, is intended to provide a white-label solution that the company says will aid Filipino fintechs in their growth and…

The Securities and Exchange Commission (SEC) has commenced a special audit into SeedIn Technology Inc. (SeedIn), following concerns over alleged fraud activities by its former president, Edison Tsai. Licensed by the SEC, SeedIn has played a significant role in providing alternative funding solutions to small, medium, and emerging enterprises (SMEs) through its crowdfunding portal. Despite its success in amassing P1.42 billion for 296 projects as of December 2022, Edison’s purported misconduct has cast a pall over the company’s operations. SEC Commissioner Kelvin Lee conveyed the seriousness of the situation to The STAR, stating, “MSRD is conducting a special audit of…

Between 2021 and 2023, the Philippines’ fintech sector grew by more than 38%, rising from 216 companies two years ago to 299 in August 2023, data from the Fintech Map Philippines 2023 shows. The 2023 data, shared in this year’s edition of the Fintech Philippines Report, reveal that the fintech sector recorded considerable growth between January 2022 and mid-2023, rising at a faster pace than between 2020 and 2021 during which the number of fintech companies increased by a more moderate 10%. These metrics are in stark contrast to trends observed in other more developed jurisdictions where the growth of…

The Bangko Sentral ng Pilipinas (BSP) has decided to keep the current cap on fees for InstaPay and PESONet, two key electronic fund transfer systems. PESONet facilitates batch electronic funds transfers while InstaPay offers real-time, low-value digital payment options. Financial institutions that are part of the InstaPay and PESONet networks are required to adhere to the existing fee structure without any increases. The BSP has also stipulated that any new fees for fund transfer services must receive prior approval and be reported 60 days before they are implemented. Additionally, if a transfer fee was previously waived, it can only be…

Local fintech firm Leapgen Lending has announced a partnership with FinScore, a Philippines-based alternative credit scoring provider. This collaboration aims to offer more accessible microloan options for individuals facing challenges in accessing traditional banking services. FinScore specialises in alternative credit scoring using telecom data, enabling digital lender Leapgen to tailor its financial products to individual customer profiles. Applicable to multiple loan products, FinScore generates telco credit scores derived from over 400 data variables such as top-up patterns, location, and mobile data usage, which encompasses the entire telecommunications market. This approach considers various data points, including mobile top-up patterns, user location,…

The Bangko Sentral ng Pilipinas (BSP) has approved the merger between Bank of the Philippine Islands (BPI) and Robinsons Bank Corporation (RBC). BPI will emerge as the surviving entity following this merger. This decision follows a series of approvals from various stakeholders and regulatory bodies. The stakeholders gave their nod in January 2023, and following that, the Philippine Competition Commission greenlit the merger in March 2023. According to the regulatory filing, this merger is poised to enhance BPI’s market position by leveraging synergies between the two entities. RBC, with its wide range of products and services and a network of…

Philippines’ cryptocurrency exchange Coins.ph announced that it has increased its daily cash-in limits for its users. Level 2 accounts, which require ID and selfie verification, now have a daily cash-in limit of PHP 500,000. Coins.ph said that Level 1 users can easily upgrade their verification status to Level 2 by providing a valid ID and completing a facial recognition scan to benefit from these new cash-in limits. Meanwhile, for Level 3 accounts, which necessitate proof of address and proof of income, the daily limit has been raised to PHP 10 million. Additionally, users with more extensive Know Your Customer (KYC)…

The Bangko Sentral ng Pilipinas (BSP) has given the green light to a set of temporary measures aimed at encouraging banks to extend loans or finance green and sustainable projects. These measures also cover transition financing for decarbonisation. Specifically, they involve providing banks with additional lending capacity and reducing the reserve requirement rate on sustainable bonds issued by banks. These measures are part of the BSP’s 11-point Sustainable Central Banking Strategy, which seeks to promote sustainable finance and contribute to the country’s climate goals and sustainable development objectives. Under these approved measures, banks can now extend loans for eligible green…

The Philippine Digital Asset Exchange (PDAX) is anticipating a surge in cryptocurrency trading volumes within the Philippines, following the imminent departure of Binance, a leading global cryptocurrency exchange. PDAX CEO Nichel Gaba envisions the expected departure of Binance, which has been flagged by the Securities and Exchange Commission (SEC) as an unauthorised exchange in the Philippines, as a pivotal moment for local virtual asset service providers (VASPs) to expand their market presence. Nichel predicts that the exodus of traders from Binance could elevate the country’s cryptocurrency trading volume to an estimated US$6 billion by 2024. Data from the Bangko Sentral…

The Bangko Sentral ng Pilipinas (BSP) is extending the moratorium imposed on the issuance of licences to new non-bank electronic money issuers (EMIs) by another year. BSP Deputy Governor Mamerto Tangonan said the moratorium on the entry of new EMI-non-bank financial institutions (EMI-NBFI) has been extended to 15 December 2024 from 15 December 2023. However, Deputy Governor Tangonan said an exception may be granted for application with proposals involving new business models and unserved, targeted niches. New technologies can also request for exception under the test-and-learn or Regulatory Sandbox framework. “These exceptions are intended to modify the current landscape in…

The accelerated energy transition amidst pressing climate concerns has compelled industry players to contribute actionable solutions in driving positive change and sustainable development. Rising up to the challenge, Petronas, a global energy corporation, has significantly expanded its scope beyond traditional oil and gas operations, delving into the realms of technology, sustainability and innovative digitalisation through its initiative, Petronas FutureTech. This programme, integral to the company’s business growth and industry advancement, demonstrates Petronas’ commitment to staying at the forefront of the rapidly evolving energy sector while also furthering a more environmentally responsible agenda, marking a pivotal shift towards embracing the future…

BillEase, a consumer finance and ‘buy now, pay later’ app, has partnered with Ant International’s Alipay+ to launch an auto-debit feature, aiming to simplify online transactions. This new facility, named Alipay+ Auto Debit, allows users to pre-authorise Alipay+ affiliated merchants to automatically deduct funds for purchases made, directly from their credit line. This integration within the BillEase application is designed to streamline the payment process, eliminating the need for manual logins and payment completion for each purchase. Additionally, it enables customers to set up installment payments, enhancing their online shopping experience. The companies say the introduction of Alipay+ Auto Debit…

The Bangko Sentral ng Pilipinas (BSP) has recognised challenges faced by digital banks in lending and payment collection. BSP Governor Eli M. Remolona, Jr. highlighted the struggles these online banks face in effectively managing loans, despite their success in amassing deposits. Governor Remolona emphasised during the Philippine economic briefing in Iloilo City, that digital banking remains an experimental endeavour within the regulatory sandbox, a testing ground designed to nurture innovation whilst minimising risks. “Digital banking is one of those in the sandbox. We’ve issued six licenses. These guys are actually very successful in collecting deposits just online. (But) they’re still…

Iloilo City has become the latest among 15 local governments in the Philippines to embrace the Paleng-QR Ph Plus programme, an initiative backed by the central bank to promote the use of digital payments in public markets and local transportation. Bangko Sentral ng Pilipinas Governor Eli M. Remolona Jr. highlighted the significance of this development, stating that Iloilo City’s adoption of the programme is a crucial step in further digitalising financial transactions in the Philippines. He emphasised the transformative impact of the Paleng-QR Ph programme, noting its potential to empower not just local communities but the entire nation by expanding…

Rizal Commercial Banking Corp. (RCBC) has established itself as a key player in the Philippine banking space, with its consumer finance app, DiskarTech recently achieving over five million downloads. The DiskarTech app benefits from around 50 artificial intelligence models developed in-house by RCBC for credit checks and fraud detection. RCBC President and CEO, Eugene S. Acevedo, highlighted the bank’s commitment to digital innovation in a recent interview with Nikkei, stating, “I think we are the leading bank in artificial intelligence. That is why much of our decisions are made or are based on AI and data science. We don’t guess.…

Insular Life and Oona Insurance group have announced a change in their business arrangement, with Insular Life selling its 40% stake in the Oona Insular Insurance Corporation to Oona Insurance, making it a fully owned subsidiary of the latter. Despite this shift, both Oona Philippines and Insular Life will maintain their cooperative relationship, continuing to cross-sell insurance products in the Philippines. This adjustment in ownership comes as Oona Philippines seeks to consolidate its presence in the general insurance sector of the country, building on its operations initiated last year. Meanwhile, Insular Life is set to focus more intently on its…