FinTech: Future for Business Growth at AIF

Business mentors and entrepreneurs pushed the advancement of financial technology (FinTech) seen to be the future of safer, more efficient and more secure business operations.

During the 11th Asian Innovation Forum (AIF) held in Tanauan, Batangas, Small Business Corporation (SBCorp) vice president for innovations and advocacy Wally Calderon shares their institution as a believer in digital transformation.

“Like what I shared earlier, we use machine learning tools for our evaluation. The dream is that SBCorp can be a fintech company — catering innovative products and services. Hopefully, our MSMEs can also transform digitally,” he told the DAILY TRIBUNE.

Talking about how FinTech scales up micro, small, and medium enterprises (MSMEs), Calderon emphasized the importance of engaging businessmen in the digital sphere, stressing that traditional businesses rerouting their marketing strategies to digital markets, such as TikTok and Facebook Marketplace, are pivotal to maximizing their potential market. 

“[We can] market not only in the traditional physical space of MSMEs but also in the digital sphere,” he said, further stressing the need for educating the older generation on using technology.

Joms D. Ramirez II As part of their efforts, the SBCorp does roadshows on top of joining insightful dialogues such as the AIF. 

“On our own, we do similar events like this.  We bring Starlink because our target areas, we believe, have a challenge in internet connection. If they have a challenge in internet connection, most probably they are the type of people that I mentioned; maybe they have an aversion or a challenge in using new technology. We really need to embrace that technology or digital transformation; if not, they will get behind,” he said.

As per Maya Bank, the country’s leading digital bank, they aim to help MSMEs, particularly with payment solutions and payment updates.

“Because this is the number one problem. The risk of accepting fake money is high. Now, in the introduction of digital payment by Maya, we want to help them to digitalize their payment through QR, which is easy and user-friendly when it comes to MSMEs,” Maya Territory Solutions manager Renier Bacarra said.

“Because they are the under-penetrated... 6 percent of our digital payment currently, and yet they are the most important and crucial in terms of our business sector,” he added, underscoring the benefits businesses can receive when they integrate digital payment, as this will result in more safe and efficient transactions.

“I think the Philippines is ready because, based on statistics, 81 percent of Filipinos already use smartphones. So most of the days, our traditional phone is out.  At the same time, the penetration rate of our internet, because if you’re using a digital platform, definitely you have to have an internet connection,” he said.

Likewise, he advocates for educating the older generation in using fintech.  “So the millennials, definitely, it’s easier for them to learn; it’s easier for them to adapt. But of course, we can’t set aside the older generation. So that’s what we’re trying to help — to educate them properly. In our department, in retail and MSMEs, we have properly deployed manpower in an area. [I] personally conduct a series of cluster meetings so that I can inform our agent networks of Maya’s latest. We tell them to educate their customers so that somehow the information flows,” he added.

Prior to this, another AIF gathering was held in Mandaluyong City, where the SBCorp opened up opportunities for students to pursue their businesses.  Several students from Rizal Technological University’s entrepreneurial courses were introduced to SBCorp’s loan program for graduating students, which will be launched this month.