Filipinos can now avail of affordable financial products and services such as mobile banking, remittance, insurance, loans and credit as the use of technology and innovation continues to grow in the Philippines, according to Mynt, the financial Technology (FinTech) arm of Philippines telecom provider Globe Telecom.
"There is really a dire need for financial inclusion in the country since many Filipinos still do not have bank accounts as well as access to formal lending and credit," said Albert Tinio, President of GCash, the micro-payment company of Mynt. "But due to FinTech innovations, even those in remote areas can take advantage of a wide range of financial services in the market today."
According to Tinio, about 70 percent of Filipinos do not have bank accounts or any formal means to save money while 90 percent of Filipinos do not have a credit score, making it difficult for them to secure a loan. It also forces some individuals to turn to informal lenders which charge interest rates of as high as 20 percent. Moreover, 40 percent of cities and municipalities do not have physical banks, thus, residents have to spend a lot of time, effort, and money to get to the nearest bank.
Globe Telecom has allowed Mynt to address these concerns by building a financially inclusive ecosystem, said Tinio speaking at the recent 5th Regional Competitiveness Summit. Since telecom companies are in a unique position to penetrate even far-flung areas through mobile services, Mynt was able to leverage on the capability and infrastructure of Globe to offer FinTech to anyone, anytime and anywhere, he explained.
"GCash, for instance, already experienced hyper growth for the past 1.5 years through the use of technology and innovation," Tinio said. "With GCash, customers can buy load, send and receive remittances, purchase goods and services, pay government fees or taxes online, among others. These have been part of our financial inclusion advocacy and eventually, we want to become a global payment solutions brands."