Ney Villasenor, vice president and general manager of GCash, a fintech company that facilitates fast and secure cellular payments, said there is no doubt that COVID-19 has made fintech facilities essential for others living in the Philippines.
Villasenor noted that the king of money in the Philippines and that maximum consumers had not made virtual transactions until the coronavirus outbreak, leading to a significant accumulation of online payments.
He added:
“Before the ‘new normal’ (before the pandemic), payment through QR codes and programs like GCash were considered optional. Today, it is considered necessary to have a virtual portfolio.”
Villasenor continued:
“Fintech continues to close the gap between classic and fashion practices, playing a massive role in monetary inclusion.”
He also discussed that cell wallets help rural and neglected families in the country by offering them access to fashionable monetary services. Small and medium-sized enterprises in the Philippines are also using fintech platforms to streamline their operations.
The Asian Development Bank has revealed that fintech platforms and can meet about 40% of the unmet need for reliable payment responses and about 20% of the borrowings of low-income families and SMEs in Asia.
Villasenor also noted that restaurants in the Philippines that supply takeaway facilities and other merchants inspire others to make contactless bills their virtual wallets.
He added:
“While maximum corporations have short-term recovery plans in position in the face of the economic crisis, the financial technology sector has an overview. What happens next when the pandemic [accelerated] the transition to virtual transactions? What do you want to do to keep this expansion sustainable? ? »
By May 2020, GCash transactions would have increased by 700% year-on-year. Fintech plans to make a higher call for its facilities by forming strategic partnerships. GCash has partnered with Ant Financial, which operates Alipay, the world’s largest virtual wallet provider.
Villasenor revealed that GCash made updates to its app, and has also upgraded its databases, while ensuring adequate security and efficiency of its payments services.
He also mentioned:
“Fintech should make its mark in history with its constant push toward inclusive financial practices…Fintech has emerged as a game changer for the Filipino individual, and traditional business models have to catch up, ASAP.”
He continued:
“Fintech has demonstrated its role in facilitating today’s ultimate life practice, social estrangement. The government has also taken this into account, fintech players to distribute monetary assistance across the country.”
The BSP (Bangko Sentral ng Pilipinas), the central bank of the Philippines, is running a new set of rules for virtual banks planning to identify operations in the country.
Manila has been ranked among the 40 most sensitive emerging ecosystems in the world, according to a new report. While neighboring Southeast Asian countries, such as Malaysia and Indonesia, are high on the list, the Philippines has experienced stable expansion and progression in its fintech sector and start-ups.
Robocash Group, a multinational monetary organization that offers loans and financing to clients in the European and Asian markets, has reportedly introduced a pre-IPO financing circular to finance the planned release of its virtual bank in the Philippines.
In May 2020, the National Bank of the Philippines announced plans to provide virtual banking and contactless payments services to prevent the spread of COVID-19.