Higala Group Inc., an instant payments solutions provider, has partnered with Yuchengco-led Rizal Commercial Banking Corp. (RCBC) to launch SynerFi, an open payments platform to expand local digital financial access for unbanked and underserved sectors.
SynerFi, designed to serve rural banks and microfinance institutions (MFIs), will allow these community-based financial institutions to offer their customers digital transactions through InstaPay, the country's real-time payments system.
Under the new partnership, Higala will supply the technology that powers the SynerFi platform, enabling seamless connections to the digital payments network.
RCBC will serve as the sponsor platform bank, overseeing critical regulatory compliance, clearing, and settlement functions.
"SynerFi brings digital services within reach for rural banks and MFIs that have traditionally been left out of the payments ecosystem,” said Vice Catudio, CEO of Higala.
“Through SynerFi, we are reducing entry barriers and ensuring these institutions can thrive in InstaPay. Expanding financial access allows them to empower more Filipinos with the tools needed for economic participation and progress.”
By linking rural banks and MFIs to InstaPay, SynerFi enables smaller financial institutions to offer their customers faster and more affordable digital transactions.
According to the companies, only about 3 percent of digital transactions are interoperable across financial institutions, and only 5 percent of over 360 rural banks currently participate in InstaPay.
Additionally, more than 2,400 credit cooperatives and 4,300 NGO-MFIs have been excluded from the network.
By providing a way for smaller financial institutions to connect to the payments system, SynerFi aims to increase participation, reduce transaction costs, and promote broader digital financial inclusion.