Scratching the Surface of FinTech in 2023
The Philippines’ FinTech business has grown rapidly in recent years and is expected to grow even more in the future.
The quick adoption of digital channels during the COVID-19 outbreak contributed significantly to this growth, as it resulted in a greater number of people using online platforms for financial transactions. Furthermore, investors are optimistic about the Philippines’ FinTech future, and the government has been supportive of financial innovation.
Cryptocurrency adoption is one of the primary areas where the Philippines has excelled in recent years. The Philippines, according to Chainalysis, is a top country for cryptocurrency adoption, with 4% of the population owning it. This is a significant milestone since it demonstrates the Philippines’ leadership in digital financial innovation.
Many Philippine FinTech firms are profitable or expect to be profitable within the next year. This is a good indicator for the business because it indicates that there is a high demand for FinTech services in the country. Furthermore, total funding for FinTech startups in the Philippines for the first half of 2021 reached $342 million, more than doubling year on year. This demonstrates the increased interest and investment in the Philippines’ FinTech industry.
Because of its young and tech-savvy population, fast-growing economy, a large number of mobile users, and government investment, the Philippines is well-suited for FinTech growth. Digital banking, online lending, payments and e-wallets, blockchain, and remittances are the primary FinTech areas in the Philippines. These sectors are projected to remain the main drivers of growth in the Philippines’ FinTech industry.
Finally, in recent years, the Philippines’ FinTech industry has grown and matured. The faster use of digital channels as a result of the COVID-19 pandemic, as well as the government’s supportive posture toward financial innovation, has played a significant role in this rise. Furthermore, the high rate of bitcoin acceptance and the profitability of numerous FinTech companies in the Philippines are both encouraging signs for the industry’s future. The Philippines is well-positioned to continue leading the way in Southeast Asia’s FinTech industry, thanks to a young and tech-savvy populace and continued government support.
Sources:
“FinTech in the Philippines 2021 in Review” — https://fintechnews.ph/54878/fintechphilippines/fintech-in-the-philippines-2021-in-review/
“FinTech and the Philippines” — https://workweek.com/2022/05/10/fintech-and-the-philippines/
“Exploring the FinTech Revolution in the Philippines” — https://technode.global/2022/04/07/exploring-the-fintech-revolution-in-the-philippines/
“FinTech’s Presence in the Philippines” — https://www.linkedin.com/pulse/fintechs-presence-philippines-elyse-katrina-go
“The Future of FinTech in the Philippines” — https://blog.rise.ph/the-future-of-fintech-in-the-philippines/
“FinTech Philippines: Opportunities and Challenges, Global Participation Critical” — https://astig.ph/fintech-philippines-opportunities-challenges-global-participation-critical/
“FinTech Opportunities in the Philippines” — https://medium.com/the-looking-glass/fintech-opportunities-in-the-philippines-6a584ccf5211
“The Growing Momentum of Philippine FinTech” — https://www.bworldonline.com/special-features/2022/02/11/429391/the-growing-momentum-of-philippine-fintech/
“The Growth of FinTech in the Philippines” — https://www.bria.com.ph/articles/the-growth-of-fintech-in-the-philippines/
