In a slowing economy, it pays to modernize

IT’S NO surprise that rising costs, fragile supply chains, and cooling demand are forcing Philippine businesses to rethink their future strategies. But economic slowdowns don’t just test resilience — they expose inertia. Lim-

- By Anouska Ladds

ited understanding of financial tools, poor line of sight into finances, and constant exposure to theft and operational inefficiencies are daily battles to overcome. In the Philippines, where around 995,000 micro, small, and medium enterprises (MSMEs) make up 99.5% of all businesses in the country, many still operate in cash-dominated environments, which could further hold them back from fully embracing digital tools and scaling.

CAPITALIZING ON CARDS

In today’s tight-margin environment, effectively managing working capital is the key to navigating financial pressures and seizing new opportunities. Eight in 10 SMEs fail due to ineffectively managing their cash flow. Even as financial institutions embrace digital and data-driven ways to assess SME credit risk and unlock tailored support in the digital economy, card adoption stands out as a simple yet powerful solution to deliver flexibility, security and control to key processes like vendor payments.