The Philippines’ financial industry is poised to accelerate the development of non-financial applications within the embedded finance sector by over 42% annually, according to a recently released report by Fintech Alliance PH.
The report highlights the growing influence of fintech in non-banking sectors such as e-commerce, automotive, and food services, where payment, insurance, and loan systems are increasingly integrated.
The Philippines Fintech Report 2024 identifies embedded finance as a key driver in industries beyond traditional banking, with significant adoption across various merchant providers.
The report underscores the role of embedded finance in transforming these industries by integrating financial services directly into non-financial platforms, making transactions more seamless for consumers.
Citing GlobalData’s outlook report, Fintech Alliance PH noted that the Philippines’ e-commerce revenue is expected to reach $24.1 billion this year, following a robust 29% growth between 2019 and 2023.
This surge reflects the broader digitalization trend in the country, with fintech playing a pivotal role.
“Looking ahead, artificial intelligence trends will continue shaping the future of financial services, offering more personalized, efficient, and secure solutions for consumers,” said Lito Villanueva, founding chairman of Fintech Alliance PH and chief innovation and inclusion officer at Rizal Commercial Banking Corp.
The Philippines Fintech Map 2024 by Fintech Alliance PH reveals that the country now hosts 335 fintech firms, which are instrumental in supporting the operations of various businesses.
Payment services dominate the fintech landscape with a 35% share, followed by lending at 22%, and remittance at 9%.
In contrast, fewer fintech firms are involved in cryptocurrencies and business registration processes, each holding a 4% share. Insurance activities account for 3%, while real estate services have the smallest share at 1%.
The report suggests that as the embedded finance industry continues to grow, it will increasingly blur the lines between financial and non-financial sectors, driving innovation and growth in the broader Philippine economy.