As financial technology (fintech) is becoming more prevalent in the Philippines, the way we handle our finances in this day and age is also evolving.
Here are some of the fintech trends that will stay and thrive in the country even after the pandemic is over:
Online crowdfunding platforms are used by startups, small businesses, non-profit organizations, and entrepreneurs amid the pandemic.
Crowdfunding allow these entities to form relationships with their supporters, which is essential in promoting their business or causes and in creating a network.
Acquiring financing has become more straightforward and innovative through online crowdfunding platforms such as Patreon or Kickstarter.
Other examples of crowdfunding can also be observed happening on social media, including organizations asking for help from netizens to help those affected by Typhoons Rolly and Ulysses.
Platforms like GCash and PayMaya are now more utilized this pandemic. People use them from saving money to donating to those affected by calamities.
These e-wallets gave many unbanked Filipinos to have access to banking in virtual form. Traditional banks, meanwhile, are also extending their services online.
The use of mobile payments has become more popular amid the pandemic because it allows people to purchase goods or do financial transactions even at home.
With this trend, the Bangko Sentral ng Pilipinas is targeting to increase the number of electronic payments by 50% in volume by the next three years.
Blockchain and Cryptocurrency
Blockchain is a complex system that operates like a digital ledger in which every payment is recorded, providing a simpler, accessible, efficient, and secured network for businesses.
Through blockchain, cryptocurrency has become more prevalent. While there are still many countries that find it questionable, the Philippines has embraced this digital form of currency early on, looking at it as a new way to raise capital.
Many Filipinos invest in cryptocurrency and this can be seen with the rise of platforms like Coins.ph, Ethereum, and Coinage.