As part of efforts to support the growth of startups in the FinTech industry, the digital technology and intelligence unit of AliBaba, Alibaba Cloud has announced a support program for local FinTech startups in the Philippines.
The support, under the program, ‘FinTech ONE’ according to the company will come in the form of technologies and training that would help accelerate the growth of these startups.
Benefiting companies will receive about $10,000 in coupons which will be redeemed with Alibaba Cloud products and services.
According to the country manager for the Philippines, Alibaba Cloud Intelligence, Allen Guo, this intervention is aimed at helping beneficiaries maximize their potential in the industry.
“By leveraging Alibaba Cloud’s IT infrastructure and innovative fintech (financial technology) products, digital financial services can reach more of the country’s unbanked Filipinos.
Each eligible company will receive up to $10,000 in cloud coupons which can be redeemed against Alibaba Cloud products and services as well as support from Alibaba Group’s ecosystem,” the company said.
“Eligible companies will benefit from streamlined access to technology solutions from Alibaba Group’s ecosystem and its affiliated company Ant Group — including those that facilitate e-commerce and payment processes — to help participating companies maximize emerging opportunities in the Philippines,” Guo said.
FinTech Industry In the Philippines
A 2019 Financial Inclusion Survey pegged the number of unbanked people in the Philippines at 51.2 million, ranking it in fourth place among the world’s most unbanked countries.
The 2019 Statistics by Startup Genome’s Global Startup Ecosystem Report also said that 15 percent of start-ups in the country were FinTech.
With a predicted market value of $10.5 billion by the end of 2022, the industry in the country had recorded tremendous progress following an increase in the adoption of electronic wallets and digital payment solutions occasioned by the restrictions due to the COVID-19 pandemic.
But the challenges of the lack, of a well-structured regulatory body and low financial inclusion challenge in the country.
The Central Bank of the Philippines states that less than 30 percent of Filipinos had bank accounts.
The CBP had thereby drawn up a target to increase the figure to 70 percent by the year 2023.
With the rise in the use of smartphones and access to the internet, the country is hopeful of tapping into the potential in the industry.
The industry in the country is regulated by three agencies; the Bangko Sentral ng
Pilipinas(BSP), the SEC, and the Insurance Commission (IC).
These agencies review the guidelines on virtual asset service providers, issuance of licenses as well as introducing new guidelines in the industry.