SEC’s digital push and the infrastructure hurdle

Since mid-2024, when a new commissioner was appointed, the Securities and Exchange Commission (SEC) has been steadily advancing its digital transformation.

The SEC has been reshaping the way of doing business in the Philippines, one digital innovation at a time.

In line with President Ferdinand R. Marcos Jr.’s directive to streamline and digitize all government services, the SEC has embraced a transformation that goes beyond surface-level automation.

It has been building systems that reduce human discretion, increase transparency, and make regulatory processes faster and more predictable. These reforms target a problem that has long burdened Philippine businesses: RED TAPE

On 6 May 2025, the SEC reached a new milestone with the inauguration of its Data Center and the launch of six new digital platforms under the fourth wave of its digital initiatives.

Among them is the Hierarchical and Applicable Relations and Beneficial Ownership Registry (HARBOR), a registry that enhances the SEC’s ability to detect complex ownership structures and trace beneficial owners.

This is crucial in the fight against money laundering and financial fraud.

Another platform, SEC Verification of Electronic Records and Information Trust and Authentication System (VERITAS), enables users to instantly verify the authenticity of electronic records, strengthening trust in the digital ecosystem through the use of blockchain technology.

The SEC Electronic Exceptional and Alternative Submission Environment (EASE) is an online system for processing exceptional submissions from corporations that have business registration and legal issues such as intra-corporate disputes.

EASE will allow the corporation under disputed status to submit reportorial requirements such as the General Information Sheet and Audited Financial Statements.

Three other platforms, Electronic Workbench and Analytics Technical Computing HUB (eWATCH), Document Management System (DMS), and Workflow Management System (WMS), work behind the scenes to improve internal workflows.

These internal software programs allow the SEC to analyze data more effectively, automate document management, and speed up processing times. Though less visible to the public, their impact is real. A regulator that operates more efficiently can respond faster to market developments, resolve issues more quickly, and reduce the cost of compliance for everyone.

These new systems are built upon earlier digital platforms like eFAST and eSPARC, which have already simplified processes such as company registration and report submission.

The benefits of this shift extend beyond regulatory compliance. A more efficient SEC boosts investor confidence, lowers administrative burdens, and contributes to a healthier business environment. In turn, this supports broader economic growth and encourages more enterprises, particularly small and medium enterprises, to enter the formal economy.

At first, problems blew up out of proportion, prompting complaints from a constituency that was more attuned to personal relationships.

The challenges seemed insurmountable and even remain. However, as the SEC deepens its digital transformation, it must ensure that such challenges are overcome and that no business is left behind.

Many micro, small and even medium-size enterprises, especially those in rural and underserved areas, continue to face barriers such as limited internet access, lack of digital infrastructure, and low digital literacy.

Bridging this divide is essential if the promise of faster, more accessible services is to benefit all, not just the well-resourced few who happen to be located in strategic areas.

As the SEC continues to push boundaries in regulatory innovation, it must also make sure that the ease of doing business is a reality for every Filipino entrepreneur, everywhere in the country, not only in the urban areas.

The rural areas therefore present the technology solution for the Philippines to leapfrog its economy not only in Southeast Asia, but in the whole world.