Philippines, India forge fintech partnership to boost inclusion

The Department of Finance (DOF) spearheaded the first meeting of a joint working group (JWG) with the Indian government in New Delhi, India, on September 12, aiming to strengthen the Philippines’ FinTech sector and promote financial inclusion for Filipinos.

The collaboration seeks to leverage India’s expertise in digital finance to advance the digital economy in the Philippines.

“The long-standing partnership between the Philippines and India speaks of both countries’ shared commitment to broaden and deepen our ties and maximize the vast potential for economic and development cooperation, especially on digital economy, digital payments, digital infrastructure, and financial inclusion,” said Donalyn Minimo, Officer-in-Charge Assistant Secretary of the DOF’s International Finance Group.

The joint effort aligns with President Ferdinand Marcos Jr.’s administration’s focus on digital transformation, with the JWG set to bolster connectivity, interoperability, and the development of FinTech solutions.

Between 2021 and 2023, the Philippines’ FinTech industry saw a significant growth of over 38%, increasing the number of firms from 216 to 299 as of August 2023.

Digital transactions in the Philippines have also surged, with the Bangko Sentral ng Pilipinas (BSP) reporting $110.5 billion worth of online transactions recorded in 2023.

The newly established partnership aims to enhance the country’s regulatory frameworks and digital infrastructure, creating more opportunities for innovation in digital payments, blockchain technology, and FinTech solutions.

The meeting opened the door for the Philippines to adopt some of India’s successful strategies. “We are willing to continue dialogues and partnerships with the Indian Government as we strive to build a robust and inclusive FinTech ecosystem,” Minimo added.

The JWG was formalized through a Memorandum of Understanding signed on June 19, 2023, and became effective on May 7, 2024.

The Philippine delegation at the meeting also included representatives from the Department of Foreign Affairs (DFA), the National Economic and Development Authority (NEDA), the Securities and Exchange Commission (SEC), and the Insurance Commission (IC).

The Indian delegation, led by Joint Secretary Rajeev Saksena from the Ministry of Finance, was comprised of officials from various regulatory bodies, including the Reserve Bank of India and the Ministry of Electronics and Information Technology.

On the sidelines of the meeting, the Philippine delegation held several bilateral engagements aimed at broadening diplomatic relations.

These included meetings with Indian institutions like the Ministry of External Affairs, Export-Import Bank of India, and Indian FinTech firm Paytm.