Broader fintech, literacy urged as SEC acts on erring lending firms

THE PUBLIC and private sectors must intensify efforts on financial literacy and financial technology (fintech) innovation to offer safer, more inclusive lending alternatives, as the Securities and Exchange Commission (SEC) cracks down on erring lending companies, according to economists.

- By Revin Mikhael D. Ochave

Following the SEC’s tighter monitoring of financial and lending firms, SM Investments Corp. Economist Robert Dan J. Roces said the government and the private sector should encourage fintech solutions to enhance financial inclusion.

“The real opportunity lies in using this regulatory cleanup to foster innovation — encouraging fintech solutions that combine accessibility with transparency, while banks develop more inclusive products,” he said in a Viber message.

Mr. Roces said the SEC’s recent directive also creates opportunities for legitimate players to serve the underbanked Filipino market.

“Rather than just removing bad actors, this moment allows both regulators and industry to build a healthier lending ecosystem that serves Filipinos’ credit needs without exploitation,” he said.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message that there should be stronger efforts from both the public and private sectors to raise public awareness and financial literacy.

“Greater public awareness and financial literacy may still be needed so that borrowers know the better options available for them. This will help them choose the best terms such as lower interest rates and better overall service quality by lenders,” he said.

Diosdado C. Salang, Jr., president and chief executive officer of Discovery Credit Solutions Corp., said the revocations will have a ripple effect across the lending and financing industry.