Is the Philippines ready for the digitalization of it's financial services?
Digitalization is happening everywhere but it is specifically relevant to the financial service. After all, financial services are the one of the most targeted area for cyber crimes because it involves money.
In this age when people expect payments and transfers to be done at the speed of life, cyber security, verification, and processes are also expected to be done in the same manner. Can it be though?
Fiserv is a global leader in financial services technology solutions. Fiserv helps more than 12,000 clients worldwide create and deliver experiences for a digital world that's always on. Solutions that enable today's consumer to move and manage money with ease, speed and convenience at the speed of life.
In the Philippines, Fiserv is working with BPI and BDO among other financial institution. They help in ensuring that transfers and other processes will be done in a faster yet secure way.
Marc Mathenz, SVP and Managing Director of Fiserv APAC, believes the Philippines is a prime spot for digital transformation. The Philippines is perfect for targeted innovation simply because we have a supportive and visionary BSP Head. A lot of our people are actually tech savvy so it's not hard for them to understand new technology and innovation.
A large number of our people use mobile, 70% of which are connected online most of the time. We also have an impressive GDP growth annually which is very promising to investors, making the Philippines still one of the top investment destination.
We also happen to have some of the most trusted banking institutions and cryptocurrency is on the rise here. There are currently 30 types with 3 of them already accredited.
Of course there are challenges such as worries about security, cybercrime, and ATM scheming. There's also the factor of the older generation who still believes in the old adage "if it ain't broken, don't fix it."
Another big hurdle facing digital transformation is the fact that only 34% people have bank accounts while 47% have loans with only 4.4% using financial institutions for their loans. Most people still prefer using out of banks loan providers.
Even with these concerns, Fiserv still believes that digitalization is the way to go. We just need to have more materials that people can read to help them understand how to fully utilize these changes and protect their assets at the same time.
So is the Philippines ready?
Right now, not yet BUT we are getting there and I personally think that's a good thing.