Onward and upward

2024 marked a year of firsts and monumental achievements, propelling the Philippines toward becoming a leading fintech hub with advances in sustainable financial inclusion, technology and groundbreaking collaborations.

- LITO VILLANUEVA

We are stepping into 2025 with clear hindsight, a stronger determination and a sharp eye for trends that will further shape the fintech industry.

However, it is always vital first to look back on our hits and misses to learn, adapt accordingly and improve. This is the key to success. Let's reminisce on some of the most memorable milestones that defined the year and will continue to influence the years ahead.

The rise of digital-only banks has been one of the standout success stories of the past year. With the Bangko Sentral ng Pilipinas (BSP) lifting its moratorium on establishing new digital banks, the market saw new players that intensified competition. This surge and the rise of digital banking and fintech catapulted account ownership to over 70 percent of Filipino adults and boosted digital payments to 53 percent of retail transactions, up from a measly 10 percent in 2018.

Digital-only banks are transforming customer experiences while unlocking the potential for increased profitability. By prioritizing streamlined operations, these banks can maintain low operational costs while providing innovative solutions to underserved communities.

We also witnessed the strength of public-private collaborations—initiatives spearheaded by the Fintech Alliance.Ph, in partnership with the BSP and key industry players, have created a dynamic and robust ecosystem for financial innovation.

I still vividly remember being challenged by the late BSP Deputy Governor, then Governor Nestor Espenilla Jr. in 2016 to organize the emerging fintech industry while building the National Retail Payments System, which gave rise to InstaPay and PESONet. This pivotal moment set the foundation for our journey. Since its founding in 2017 with only seven corporate members, Fintech Alliance.ph has grown to over 100 organizations, driving more than 95 percent of the country's retail digital financial transactions.