The way forward: Fintech Alliance INDX Summit 2 . 0 reinforces digital transformation and inclusion as a path to economic recovery – BusinessWorld Online
Fintech Alliance. PH, in cooperation with Enderun Conferences, recently hosted the second edition of Inclusion plus Digital Change (INDX) Summit last Nov. 22-23, 2022 at the Enderun Tent in McKinley Hill, Taguig City. The event was attended by hundreds associated with industry practitioners involved in finance and technology locally and internationally, and was participated by some of the particular country’s highly-esteemed regulators, government officials, economic policy makers, thought leaders, and members of the diplomatic corps.
The particular goal of the INDX Summit 2. 0 has been to discuss challenges concerning the digital divide between standards plus regulations in e-commerce, health, agriculture, education, MSMEs, open banking, insurance, AI, and the new technologies, among others. It also discussed how Filipino consumers and businesses can use electronic technology plus digital change to deal with the current environment, advance financial recovery, and get back on track in achieving long-term financial goals.
“This monumental event is the particular gathering associated with the Philippines’ visionaries and trailblazers. The past two years have been golden for the fintech industry in the Philippines and throughout Southeast Asia. It is only fitting that we reflect on our successes plus welcome promising years in order to come, ” said Lito Villanueva, founding chairman from the FinTech Alliance. PH and the executive vice-president and chief innovation and inclusion officer of RCBC.
According to the Philippine Statistics Authority, the value of the digital economy in the particular Philippines increased by 7. 8% plus reached P1. 87 trillion in 2021. E-commerce erupted through the pandemic and continued to grow post-lockdown. Online selling transformed from being a side job in order to becoming a primary source of income. The main drivers of the digital economic climate, which contributed to 9. 6% of the nation’s GDP of the same year, includes digital infrastructure, e-commerce, and electronic content.
In addition , the ASEAN digital economy has expanded more quickly as a result of the particular digital boom. According to Google, Temasek Holdings Pte., plus Bain & Co., it is anticipated that the internet space will receive US$200 billion and a total value of transactions this year, exceeding the projected target three years earlier than anticipated. However , given these outstanding outcomes, it’s important to keep an eye out for early indications associated with concerns. As a result, fewer people are using the internet from 10% in the particular preceding 12 months to only 4% in 2022.
There are also numerous challenges and societal deficits associated with the digital divide. One example is the lack of proper infrastructure. Affordability will be also a challenge, owing in order to a lack of competition and investment. There is also the issue associated with intimidation, the particular presence of loan sharks, and a lack of trust in the system, which has prevented businesses through fully embracing a more digitized economy.
The Philippine Economic plus Digital Roadmap
Through looking at the macro point-of-view, the Bangko Sentral ng Pilipinas (BSP) specifically observed significant progress towards attaining its targets under the Digital Payments Modification Roadmap 2023 where moving out of cash results in greater efficiency. BSP Governor Felipe M. Medalla stated that “in order to digitize more peer-to-business and business-to-business payments, the particular BSP collaborates with the payments industry to launch new innovative payment streams. ” These are anchored into 3 pillars such as electronic payment streams, digital financing infrastructure, and digital governance and standards. The goal is in order to make 50% of total retail volume become digital and 70% of Filipino adults become financially included. “To go digital, you will become more efficient. It’s going to be beautiful in the coming years, ” he added.
For Finance Secretary Benjamin E. Diokno, “The COVID-19 pandemic has redefined what we considered to be ‘business as usual’ [and] it furthermore presented a good opportunity for economists around the world to quicken the pace towards a far more digital economic climate. Although there are strides to adapt to the new normal, there is still much to be done before it is able to reach the goals. ”
It is critical to expertly navigate with the pressing global challenges posed by the volatile political landscape. To address these issues, the authorities developed a set associated with strategic interventions known as the 8-Point Socioeconomic Agenda. “We will address the particular impact of inflation plus the vulnerable sectors, reduce economic scarring from the pandemic, and ensure a few macroeconomic fundamentals, ” Mr. Diokno explained.
Philippines Through Electronic Transformation plus Inclusion
Both the particular government and the private sector should build the rapport inside leading the digital modification in the country. Leaving it solely to the federal government wouldn’t be economically feasible. GCash President & CEO Martha Sazon justified that will “Digitalization or digital economy is a very complicated value chain. It starts from internet connectivity, device availability, as well as the various regulators around it, plus into our own space — fintech, web commerce, and the numerous economic services. In the complete value string, you have the particular government within each and every step. But a person have different private sectors participating in it. While we may provide advanced technologies, best practices from our partners and execution, we need the partnership from the govt to make it easy for us to participate and in order to increase the penetration. ”
Indeed, as the Philippines transitions to a new digital economy, the government highly supports the fintech industry and is moving in a positive direction simply by imposing requirements and regulations. During the speech of Senator Mark A. Villar in the INDX Summit, he stated that “[although] the pandemic has revealed plus brought urgency to necessary reforms in public health, social safety nets, disaster response, and rural development, amongst others, what reinforces all these types of reforms is usually the electronic imperative. Going digital may be the way as well as the key. ”
Mr. Villar, who also acts because the chief from the Senate Committee on Banks, Monetary Institutions and Currencies, offers filed United states senate Bill No . 1128 or even An Act Promoting the particular Adoption associated with Digital Payments for Economic Transactions of the Government and All Merchants, plus Resolution Number 126 directing the appropriate Senate committee to conduct an inquiry in aid of legislation on the status of rules by the Banko Sentral ng Pilipinas and other relevant government agencies concerning cryptocurrencies and other digital currencies within the Philippines.
“We are ready in order to support further innovations with regard to the more efficient, convenient, plus secured use of digital assets, as well as to legislate in order to ensure that will digital transactions are duly protected. Our hopes for a more equitable and successful post-COVID society involve the establishment of crucial digital economy pillars such since robust electronic infrastructure, digital skills, e-government, e-commerce, and an enabling legislative plus regulatory atmosphere, ” said Mr. Villar.
The particular INDX Peak second . 0 was capped from the Fintech Alliance Ambassador’s Gala, which brought together key heads of missions and other international development companies as well as regional and worldwide partners. Albay Second District Rep. Joey Salceda, who is furthermore the panel chair regarding Ways and Mean, culminated the event with a keynote speech where he addressed how “Technology has always been at the heart of finance. ”
As the first champion in Congress of the particular Virtual Banking Act, the Fair plus Inclusive Credit Act, the particular Financial Technology Development Act, the Blockchain Technology Development Act, as well as the parametric insurance intended for government property which equalizes risk among LGUs, and others, Mr. Salceda explained, “Digital financial technology must become trustworthy. With more digitalization of financial comes the digitalization of the most predatory practices in the particular sector, and its underground mutations. Technologies can do so much, but its aim must end up being to create worth and virtue in community. The Philippines abounds in problems that the fintech sector can solve. If anything, that makes it the promising market for you. ”
Even though the particular Philippines is definitely lagging behind many of its regional neighbors in terms of electronic implementation, there is hope in the adoption, plus fintech turns all of these problems into the silver lining. Every Filipino offers a fair share from the technology that is currently available, that has the particular positive effect of empowering everyone digitally by providing access to everything they need for their finances as well as the data they require to expand sustainably. Furthermore, financial literacy is essential when utilizing digital technology. Everyone can benefit through it by learning and understanding the ethics, discipline, and specifications.
A number of pioneering initiatives have also been launched during the first FinTech Alliance Ambassadors Gala. These include the 1st off-campus Fintech and Regulatory Innovations Technology Program within the ASEAN region with the Cambridge Centre for Alternative Finance by Judge Business School of the University associated with Cambridge in the United Kingdom in collaboration with the Mapua University and the particular FinTech Connections; the launching from the BSP Governor Nestor A. Espenilla, Jr. FinTech and Inclusive Finance Grants Matching Program; and the collaboration using the Ant Group’s 10 x 1000 Tech to get Inclusion. The event also saw the oath taking of additional members of the Board of Trustees and also incoming brand new members.
The particular INDX Summit is a flagship occasion of Fintech Alliance. PH LEVEL and has been running since 2019. This is an excellent learning plus networking platform for professionals and stakeholders striving pertaining to sustainable electronic transformation success.
The INDX Summit 2 . 0 — Accelerating the Digital Economy: Issues, Impacts, and Innovations was co-presented simply by Binance Academy and was made possible by the following sponsors: RCBC, Maya, Pru Life UK, InvestHK, Brankas, Grover, Clari5, M2P, Uniphore, Saviynt, CYFIRMA, Ion Management Solutions, Netcore Cloud, Pera Hub, Coins. ph, GSIS, CIBI, UNO Digital Bank, Tala, plus ANT Group; government companions: Department associated with Finance, Banko Sentral ng Pilipinas, Department of Information and Communications Technology, Securities & Exchange Commission, Insurance Commission, Division of Trade & Industry, Credit Info Corp., and National Privacy Commission; plus industry organization partners: JCI Manila, Administration Association from the Philippines, Women’s Business Council, FINEX, Institute of Corporate Directors, Global Impact FinTech, Mapúa College, 10×1000 Tech for Inclusion, ANT Team, and the particular University of Cambridge Center for Option Finance.
Spotlight can be BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them in order to publish their stories directly on the BusinessWorld Web site. For more information, send an email to [email protected]. com.
Join us upon Viber to get a lot more updates from BusinessWorld: https://bit.ly/3hv6bLA .