Progress in national infrastructure and enabling policies, supported by digital banking, can help expand access to financing for micro, small and medium enterprises (MSMEs), Angelo Madrid, president of Maya Bank, said at the Money20/20 Philippines Summit.

Madrid shared his views during a panel discussion titled “Open Banking and Embedded Finance Empowering SMEs,” which examined how financial services can be delivered more efficiently when integrated directly into platforms that businesses already use. The approach, panelists said, helps reduce friction, shorten approval timelines, and improve access to capital for small enterprises.

“MSMEs are the backbone of the Philippine economy, but many still face challenges when it comes to accessing timely financing,” Madrid said. “Digital banking plays an important role, but it works best when supported by the right national infrastructure—simpler processes, streamlined requirements and digitized systems that make it easier for businesses to operate and grow.”

MSMEs account for nearly 99.6 percent of all businesses in the Philippines, employ about two-thirds of the workforce, and contribute roughly 40 percent of gross domestic product. Despite this, access to formal financing remains uneven, often limited by lack of collateral, fragmented records, and lengthy application processes that do not always reflect how small businesses operate.

Madrid emphasized the need for continued progress in digital infrastructure and policies that reduce friction for MSMEs, including simplified business registration, standardized documentation, and broader use of digital records across government agencies and financial institutions.

He also highlighted the role of know-your-business processes in helping banks better verify and understand MSMEs, stressing that sustained collaboration among regulators, industry players, and government agencies is crucial. These include the Bangko Sentral ng Pilipinas, Department of Trade and Industry, and the Securities and Exchange Commission.

Panel discussions also underscored how embedded finance—where payments, banking, and credit services are built directly into business platforms—can help close financing gaps by delivering financial tools within the flow of everyday operations. This allows MSMEs to access accounts, payments, and credit in one place, enabling faster cash flow and reducing friction during critical moments such as inventory restocking or seasonal demand.

Drawing from Maya’s experience, Madrid said the model is already being applied through the Maya Business app, which allows MSMEs to accept digital payments, manage funds, and access banking services through a single interface. He noted that AI-powered credit assessments are based on transaction data and cash-flow activity rather than fixed collateral, enabling quicker access to working capital aligned with actual business performance.

Madrid added that progress toward open finance, including secure data-sharing frameworks, can further improve how financial institutions assess MSME needs. However, he stressed that immediate impact depends on strengthening foundational systems and collaboration across government and industry to ensure digital tools translate into real benefits for businesses.

“Improving access to finance isn’t just about new products,” Madrid said. “It’s about making the overall experience simpler and more intuitive—from onboarding and verification to disbursement and daily use.”

The Money20/20 Philippines Summit convenes leaders from banking, payments, fintech, and policy to discuss the future of financial services and how technology can support inclusive and sustainable economic growth.