The Philippines doesn’t need more fintech apps; needs rails

The Philippines has experienced rapid growth in digital finance, with e-commerce and on-demand apps making online shopping and payment methods commonplace. However, the second wave of the digital economy should focus on building the necessary infrastructure to support financial inclusion. While wallet usage has increased, formal bank account ownership has decreased, leaving a gap that needs to be addressed.

This second wave should not simply add more apps but rather create the necessary "rails" to make the financial system robust and inclusive. The Bangko Sentral ng Pilipinas' Open Finance Framework lays out the principles for this, emphasizing that people own their financial data and can share it with trusted institutions. However, the implementation of this framework requires infrastructure to make it a reality.

This includes making data sharing a right rather than a favor, enforcing data privacy rights, and allowing private companies to design, build, and maintain the infrastructure. By addressing these gaps, the Philippines can ensure that financial services become truly accessible to everyone, including those who currently lack access, such as gig workers, market vendors, and families relying on remittances.