The Fintech Alliance.PH, the National Privacy Commission (NPC) and various industry players have joined forces in condemning the insidious practice of illegal and irresponsible data harvesting of some online lending applications. Several online lending platforms have been found to be exploiting users’ data by using unnecessary app permissions in order to access and store excessive amounts of its users’ private information without any justifiable reason. This is in violation of the Data Privacy Act of 2012, which protects and secures the privacy of every personal information and information in communications system in order to ensure free flow of information that…

With digital adoption spiking up in recent years coupled with Bangko Sentral Ng Pilipinas’ recent introduction of the digital banking framework, industry pundits have been examining the relevance of branch banking and whether it will survive the digital age. A report by Roland Berger indicated that 11,000 branches are expected to close globally within 10 years. In the Philippines, the same report anticipated a 21% reduction in branches. In a webinar organised by the Fintech News Philippines, we were joined by Paolo Baltao, Senior Vice President at Philippine National Bank, Rachel Freeman, Chief Growth Officer at Tyme, Randy Montesa, Head…

In August 2018, President Rodrigo Duterte signed the Philippine Identification System Act into law to create a national identification system where a single official identification card will be issued to every citizen that combines various government-issued identification. Through the act, he aims to promote good governance, enhanced governmental transactions, and subsequently create a more conducive environment for trade and commerce to thrive. The Philippine Identification System More than two years later, the Philippine Statistics Authority (PSA) virtually launched this new national ID system in October 2020. The Philippine Identification System, or PhilSys, will serve as a central identification platform for…

Fintech training platform 10×1000 Tech for Inclusion launched its latest global Fintech Foundation Programme Flex, an online certificate programme with the goal to bridge digital skills gap to drive inclusion. Fintech Alliance.ph will collaborate with 10×1000 to recruit 100 learners, through its local members and partners including education institutions. The partnership with Fintech Alliance.ph is part of 10×1000’s ongoing effort to deepen its collaborations with partners worldwide. Globally, 10×1000 has also forged partnerships with the IFC, United Nations Economic Commission for Africa, UN World Food Programme, SME Finance Forum Managed by the IFC, Dubai International Financial Centre, MDEC, KPMG and…

Rizal Commercial Banking Corporation’s (RCBC) financial inclusion super app DiskarTech has booked a gross transaction value in excess of P11.8 billion a year after its launch in July last year. This total throughput value is an aggregate of both organic transactions done through the app, and the government aid disbursed via DiskarTech Lite in collaboration with its “Ayuda Arangkada” partners. As of August 31, DiskarTech’s gross organic throughput value has reached P5.2 billion, which includes basic in-app transactions such as bills payment, free fund transfers via Instapay and PESONet, e-load and e-pin services, and cash in and out transactions with…

Bangko Sentral ng Pilipinas (BSP) has awarded the sixth digital banking license to Voyager Innovations (Voyager), through its financial technology arm PayMaya Philippines. PayMaya had previously raised US$167 million from the likes of Philippines telecoms PLDT, global investment firm KKR, Chinese tech firm Tencent and IFC Asset Management Company in anticipation of the license. The digital bank will be known as Maya Bank whose primary focus will be the largely unbanked and underserved population of consumers and micro, small, and medium-sized enterprises (MSMEs). ​It also intends to promote digital financial services among the youth, women, senior citizens, and other underbanked…

Bangko Sentral ng Pilipinas (BSP) and the Agence Française de Développement (AFD) signed a grant facility agreement of 700,000 Euros (around PHP 41.3 million) to support the Philippines’s financial inclusion drive, especially among rural and women-owned enterprises. This will fund a technical assistance (TA) programme to support BSP’s efforts to leverage technology for the effective regulation of digital finance as well as promote digital financial literacy of rural and women-owned businesses. Additionally, it will also contribute to public policy dialogue on agricultural insurance. This grant complements the Inclusive Finance Development Programme (IFDP), a programme which AFD has been supporting since…

Philippines’ neobank Tonik announced that it has launched a Quick Loan product on its platform marking its venture into the consumer lending market in the country. Tonik said that its all-digital Quick Loan is designed to serve the unbanked and underbanked Filipino middle class with a quick and affordable bank credit proposition. Applicants are not required to have prior credit history or a pre-existing bank account at any bank as the offering relies on alternative credit scoring technologies. The application process reportedly takes 15 minutes where applicants will need to upload one form of ID and their latest pay slip.…

Philippines-based alternative credit scoring provider FinScore has partnered with Welcome Bank (Rural Bank), one of the subsidiaries of Korea’s Welcome Financial Group. The partnership will enable Welcome Bank to integrate FinScore’s predictive credit scores into it credit risk models. FinScore’s solutions are based on over four hundred telco variables such as voice usage, top-up patterns, duration of calls, SIM card age, location, and more. Moreover, Welcome Bank will also integrate FinScore’s fraud prevention solutions such as geo-location and other fraud tools through a standard API. Welcome Financial Group currently operates the fourth-largest savings bank in assets and 12 other subsidiaries…

Data analytics company FICO’s digital banking survey shows that people in the Philippines expect a seamless banking experience when it comes to opening an account via a mobile app or website. Three in five expecting to answer 10 questions or less or they will abandon the process while 20% of Filipinos said that they will drop out if asked more than five questions. This is consistent with the findings that 26 percent of Filipinos felt that financial institutions ask too many questions. 1,000 Filipino adults were surveyed in January 2021, along with 13,000 consumers in the USA, UK, Canada, South…

Banking and financial services platform Mambu shares its “Reinventing Banks as Disruptors” whitepaper to help financial institutions get ready for the future of core banking. Technology is evolving faster than ever and it is becoming challenging for banks to continue to be leaders in the industry. This is the time banks need to start thinking to evolve or they will get left behind. The market has been blown wide apart with open banking and PSD2, leaving the door open to competition from nimble fintechs. Brand is not a concern for consumers anymore, what matters is convenience, choice and speed above…

Philippines’ financial services center PERA HUB has joined forces with Brankas, an Indonesian open API technology provider, to launch a digital remittance platform, PERA HUB Conex. The platform serves foreign and local remittance companies, fintech partners, banks, e-wallets, brick-and-mortar retailers, and any other business looking to offer their customers digital remittance services. As PERA HUB’s technology partner, Brankas is implementing its Open Finance system to unlock new digital remittance channels for Filipinos at home and abroad. Brankas provides a secure API developer portal that enables partners to access the PERA HUB network. The platform will offer services that include international…

Bangko Sentral ng Pilipinas (BSP) announced that it will no longer be receiving applications for new digital banks including banks wanting to convert their status from 1st September 2021. Digital bank applications sent in to BSP until 31 August 2021 will be processed on a first come, first served basis. These will be assessed for completeness of documentation and information as well as compliance with the licensing criteria on the establishment of digital banks. Applicants who fail to meet BSP’s pre-qualification criteria or have incomplete documentation will be returned and not be subject to further processing. After the deadline on…

Tonik, a Filipino digital bank that was recently licensed by the Bangko Sentral ng Pilipinas (BSP), has launched the physical debit cards for its clients. Customers can now order physical debit cards through the app, and use these cards at any ATM or merchant that is part of Mastercard’s global network. The numberless card gives its users the ability to manage limits of physical debit cards as well freeze or unfreeze the debit card for transactions within the app. Tonik added that the card is protected by 3-D Secure and advanced antifraud, powered by Mastercard’s security suite. The neobank made…

The Philippine Digital Asset Exchange (PDAX), a cryptocurrency exchange licensed by the Bangko Sentral ng Pilipinas, announced that it has raised US$12.5 million (₱ 630 million) in funding. The funding round was led by an unnamed UK-based venture capital firm. Other participating investors include Hong Kong SFC-licensed digital asset operator BC Group, UnionBank’s venture arm UBX, Beenext Ventures, CMT Digital, and Ripple Labs. The firm said that the funds would fuel its short- and long-term growth plans as PDAX continues to expand and roll out more products and features. PDAX launched its cryptocurrency exchange back in 2018 to provide Filipinos…

GOtyme, a partnership between Filipino conglomerate Gokongwei Group and Singapore-headquartered digital banking group Tyme, has secured the fifth digital bank license from the Bangko Sentral ng Pilipinas (BSP). GOtyme is expected to launch in the second quarter of 2022 and will be led by Jojo Malolos along with Nate Clarke, one of Tyme’s founding team members. The newest digital banking player will reportedly provide secure and easy onboarding through both an app and digital kiosks conveniently located throughout the mall and retail footprint of the Gokongwei group. Earlier this year in February, Tyme had closed a US$110 million Series B funding…

Union Bank of the Philippines teams up with Western Union and its agent in the Philippines PERA HUB for a seamless and reliable way to receive remittances in real time through the bank’s app. Western Union has more than 550,000 agent locations in over 200 countries and territories while PERA HUB enables their digital execution in the Philippines. UnionBank said that is the first Philippines bank that enables customers to claim Western Union remittances through the app and credit it directly to their bank account right away. “Through collaboration with Western Union, the largest remittance network globally, and PERA HUB,…

Consumer lending company SB Finance has partnered with FinScore to enhance its credit scoring efforts using alternative data. Security Bank Corporation and Bank of Ayudhya (Krungsri) in Thailand had previously entered a strategic partnership to form SB Finance which provides multi-purpose loans to clients in 2020. Using FinScore’s Telco Credit Scoring Solution, SB Finance will be able to predict the creditworthiness of borrowers and assess their capability to avail of the company’s various loan offerings. FinScore’s solutions are based on over four hundred telecommunication variables such as voice usage, top-up patterns, duration of calls, SIM card age, location, and many…

Pac Technologies, a Singapore-based startup founded by boxing champion and senator Manny Pacquaio, has launched a limited edition digital card PacPay that is targeted at his fans. With PacPay, fans who subscribe to the digital card can deposit funds and make seamless QR code payments at over 61 million merchants worldwide. Users will have access to private event tickets, limited edition autographed merchandise such as t-shirts and boxing equipment, discounts, game rewards and other benefits of the PacPay Loyalty Programme. There are also plans for mobile games from game developer Just4Fun to be included in the PacPay ecosystem to attract…

Mobile wallet GCash has partnered with leading fintech Ayannah, a Filipino fintech startup that provides affordable and accessible digital financial services, to launch GCash Padala. The new remittance service will allow GCash’s more than 40 million users to send money to non-app users. GCash Padala is a faster, easier and more affordable way for its users to remit money from their mobile phone even if the recipients do not have an e-wallet or mobile bank account. The service allows senders to save time and effort from physically going to remittance centers, providing them the convenience of doing this through their…