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The Philippine government, in partnership with its Indian counterpart, recently launched the inaugural joint working group (JWG) meeting aimed at boosting the local financial technology (FinTech) sector while enhancing financial inclusion for Filipinos. This initiative marks a significant step towards harnessing the potential of FinTech in addressing the financial needs of the population.
The inaugural meeting of the Joint Working Group (JWG) emphasised the enduring partnership between the Philippines and India, showcasing both nations’ dedication to promoting economic and developmental cooperation in the digital economy. Discussions during the meeting highlighted the critical need to enhance digital financial transactions and infrastructure, essential for improving financial access for underserved populations, while also exploring innovative solutions that could empower individuals and small businesses in the digital economy.
“This partnership speaks to our shared goal of maximising opportunities for our citizens,” stated Donalyn Minimo, acting Assistant Secretary of the Department of Finance’s (DOF) International Finance Group (IFG).
The establishment of the JWG is consistent with the Marcos administration’s priorities to enhance economic collaboration in the FinTech space. The JWG is expected to improve connectivity and drive the development of innovative FinTech solutions that can cater to various sectors of the economy.
This comes at a time when the Philippines has experienced remarkable growth in its FinTech sector, with the number of companies increasing from 216 in 2021 to 299 by August 2023 – a significant 38% increase. The Bangko Sentral ng Pilipinas reported that digital transactions in the country reached approximately USD 110.5 billion in 2023, reflecting the increasing reliance on digital financial services.
During the meeting, participants explored various initiatives, best practices, and regulatory safeguards aimed at enhancing the Philippine digital infrastructure. The discussions opened avenues for innovation in digital payments, blockchain technology, and other FinTech solutions. This is expected to empower individuals and businesses by providing them with access to more efficient financial services.
The Philippine delegation expressed a strong interest in continuing dialogues and partnerships with India to establish a robust and inclusive FinTech ecosystem that is beneficial to citizens and adds competitiveness to the economy.
The JWG was formalised through a Memorandum of Understanding (MOU) signed on June 19, 2023, which took effect on May 7, 2024. The signing of the MOU set the stage for collaborative efforts in developing the FinTech landscape in the Philippines, with an emphasis on creating a supportive regulatory environment and promoting innovation.
The Philippine delegation included representatives from various government agencies, such as the Department of Foreign Affairs (DFA), the National Economic and Development Authority (NEDA), the Securities and Exchange Commission (SEC), and the Insurance Commission (IC). Philippine Ambassador Josel F. Ignacio and other embassy officials participated in the event, reinforcing the diplomatic ties between the two nations.
The Indian delegation was led by Sh Rajeev Saksena, Joint Secretary of the Ministry of Finance’s Department of Economic Affairs, and included representatives from various ministries and regulatory bodies.
In addition to the JWG meeting, Philippine officials engaged in a series of bilateral discussions with Indian government institutions and private firms, including the Ministry of External Affairs and Paytm, further solidifying their mutual diplomatic relations.
The DOF officials also participated in the 14th Philippines-India Political Consultations, co-chaired by DFA Undersecretary Ma. Theresa Lasaro. These discussions reflect a broader strategy to leverage technology and innovation in enhancing financial services, paving the way for a more inclusive and digitally advanced financial ecosystem in the Philippines.
The collaboration aims to not only enhance financial inclusion but also drive economic growth and development in the region, ensuring that the benefits of FinTech are accessible to all citizens.
