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The fintech landscape in the Philippines is undergoing a remarkable transformation, fueled by the country's rapid digitalisation, a
supportive regulatory framework, and concerted efforts to enhance financial inclusion. The adoption of cryptocurrencies is on the rise,
bolstering the growth of a thriving digital asset industry. Government-led initiatives to modernise payment infrastructure have
resulted in a surge in digital payments, while the emergence of branchless, virtual banks marks a significant milestone in financial
innovation.

As outlined by the Bangko Sentral ng Pilipinas (BSP), the Philippine Central Bank, the aspiration for 2023 is both robust and within
reach: a future where half of the total retail transaction volume is digital and where 70% of Filipino adults have seamless access to
financial services. With these goals in mind, the Philippine fintech ecosystem is well-positioned to maintain its vibrancy and resilience.
It continues to adapt and evolve, catering to consumers' and businesses' evolving needs and preferences.

As we approach 2023, the stage is set for further advancements and achievements in the fintech landscape of the Philippines. The
ecosystem stands ready to embrace new opportunities, foster innovation, and drive financial inclusion throughout the nation.

Fintech News Philippines remains committed to providing the community with the latest insights, stories, and developments that
shape this dynamic ecosystem.

Christian König
Founder, Fintech News Network
The Annual Philippines Fintech Report 2023 has been the much awaited resource material not only by industry players, but as well as
regulators, legislators, policy makers, academe, researchers, investors, including foreign missions in the country. It is a remarkable
piece of research that captures the evolution of the countryʼs fintech industry and the impact the individual and collective activities
of all players on the lives and dreams of Filipinos.

The humongous strides that we have undertaken in the past decade to build a robust, inclusive, and sustainable digital economy have
borne fruits. We have not only demonstrated remarkable potential in creating growth opportunities for millions of Filipinos by
fortifying and scaling our Internet economy. These developments are the reasons why there is much jubilation not only amongst
Filipinos but from people worldwide.

As we embark on a new era of digitization and engage wider citizens, the Fintech Report 2023 compels us to sit, reflect, and ponder
on its striking findings about the successes, gaps, and promises within the Philippine FinTech and Digital Community. For many of us,
this report is both a testament to our diligence and craftsmanship as well as a blueprint of our path in the years to come.

While there is excitement about the immense growth potential that our industry showcases, there are important points to address to
ensure the safety, trust, and reliance of millions of Filipinos in using digital finance.

As the Founding Chairman of Fintech Alliance.PH, I express my heartfelt gratitude to all who have contributed in piecing this valuable
document of data and insights. The diligence of the people who have worked to produce this report is an inspiration to all fintech
players to continue doing work that is facts-based and socially-impactful.

To my colleagues, let us treat this report as a sacred document that encapsulates all our hard work and celebrates our hard-earned
wins. Most importantly, this report is a testament that a developing country like ours can surpass and overcome any roadblock
towards success and development.

May all those who read this yearʼs Philippine Fintech Report be filled with hope, inspired by success, and motivated by action to grow
a stronger, more inclusive, and more socially-responsive Philippine FinTech Industry.

Lito Villanueva
Founding Chairman, Fintech Alliance PH
As the Philippine BFSI(Banking, Financial Services and Insurance) industry continues to evolve and adapt to the new normal, cloud
computing has become an essential tool for businesses looking to stay competitive and drive innovation. At Alibaba Cloud, a global
leading cloud service provider, we are committed to the success of our customers in more than 200 countries and regions, providing
reliable and secure cloud computing and intelligence processing capabilities that can enable customers to grow their business. In
October 2021, Alibaba Cloud Philippines launched its first data center in the country.

Alibaba cloud platform offers a comprehensive suite of services, including infrastructure as a service (IaaS), platform as a service
(PaaS), and software as a service (SaaS), that can be customized to meet the specific needs of businesses across industries.

At Alibaba Cloud, we are proud to have worked with some of the local and global leading fintech companies and banks to drive
innovation and growth in the industry such as GCash, Alipay, Hang Seng Bank, CIMB, DANA, TNG Digital, UBX and more. Our commitment
to innovation and growth in the industry is exemplified by our global best practices and
comprehensive financial services, which include digital e-KYC, Cloud Native, Cybersecurity, Network Acceleration and Data Analytics,
among others to accelerate their digital transformation journey, while maintain the highest levels of security, compliance and
reliability.

For fintech companies, our cloud solutions like Mobile Suite and Cloud Adoption Framework have empowered lots of fintech startups to
launch new products and services rapidly and cost-effectively, without having to invest in expensive IT infrastructure.

As we continue to expand our presence in the Philippines and across the region, we remain committed to providing world-class cloud
solutions and driving innovation in the banking and fintech industries among others. We look forward to working with more companies
and organizations to help them achieve their goals and succeed in the rapidly evolving world.

Allen Guo
Country Manager, Alibaba Cloud Philippines
The Bangko Sentral supports Fintech Alliance.PH on the launch of the Philippines Fintech Report 2023, another authoritative
reference on the countryʼs fast-growing fintech landscape. We are confident that the latest report will serve as a key resource that
provides valuable insights into the drivers behind the progress of FinTechs in the country.

The BSP and the Alliance enjoy a strong history of collaboration in pursuit of shared goals for the financial system and the broader
economy. With your support, we have made good progress on our account ownership and digital payment goals under the Digital
Payments Transformation Roadmap (DPTR) and we are confident that this partnership will continue well beyond the DPTR.

Achieving all these advancements in digital financial services espouses a “collective creative” approach, taking into consideration
the multiplicity of players and multi-layered relationships among fintech innovators, and financial sector players in ensuring policy
consistency and preventing regulatory arbitrage. For the Bangko Sentral, we shall remain committed to pursuing policy reforms that
above all increase public trust in the digital financial ecosystem and
focusing our efforts on areas that are crucial to achieving the countryʼs sustainability goals. On the other hand, we enjoin all
stakeholders to advocate for responsible innovation in digital financial services and help increase the level of digital financial
literacy in the country. It is only through this “collective creative” that we can all truly benefit from everything that technology and
innovation have to offer.

Let me thank the Alliance for inviting me to inaugurate new Fintech Alliance.PH members last May 2023. It is my pleasure to welcome
a fresh set of digital champions ready to push the digital financial agenda forward.

While the central bank does not dismiss the risks associated with increasing digitalization, the BSP would rather look to the promise
of the digital economy, ‘what could beʼ over ‘what could go wrong?ʼ while putting the necessary cybersecurity, consumer protection
and digital financial literacy mechanisms in place. The industry-led multi-
stakeholder nationwide consumer cybersecurity education campaign #WagMagpalokoMagingScamAlerto is one such example and
we look forward to other collaborative efforts with the industry.

We hope that the 2023 Philippine Fintech Industry Report will continue to facilitate a productive dialogue among industry players,
policymakers, investors, and other stakeholders. Congratulations on the launch of the Philippines Fintech Report 2023!

Felipe M. Medalla
Governor, Bangko Sentral ng Pilipinas
I am pleased to present the Philippine Fintech Report 2023, which provides a comprehensive overview of the rapidly evolving fintech
landscape in the country. The fintech industry has been rapidly expanding in the Philippines, with innovations and solutions being
introduced regularly.

This growth has led to increased access to financial services for millions of Filipinos and has the potential to transform the way we
conduct transactions and manage our finances. As regulators, it is our responsibility to support the growth of the fintech industry
while ensuring that it operates within a safe and stable regulatory framework. We understand the need to strike a delicate balance
between promoting innovation and safeguarding the interests of consumers, maintaining financial stability, and combating financial
crimes.

To this end, the Securities and Exchange Commission has been working closely with other regulatory authorities and industry
stakeholders to promote a conducive environment for the fintech industry to thrive. We have also been reviewing and updating our
regulatory framework to accommodate new developments in the industry, such as digital assets and crowdfunding. The Philippine
Fintech Report 2023 provides valuable insights and recommendations for all stakeholders in the industry, including regulators,
policymakers, investors, and industry practitioners. It offers a glimpse of the key players, trends, and predictions for the future of the
industry, and highlights the challenges and opportunities ahead.

As the Chairperson of the Securities and Exchange Commission, I congratulate Fintech Alliance.ph and Chairperson Lito Villanueva on
the successful launch of the Philippine Fintech Report 2023! This is an incredible achievement that showcases the hard work and
dedication of everyone involved in the project. I commend Fintech Alliance.ph for their commitment to promoting innovation and
collaboration in the fintech ecosystem, and I wish them continued success in their future endeavors. Congratulations once again on
this milestone achievement!

As we move forward, I am confident that the fintech industry in the Philippines will continue to flourish, and that regulators will remain
committed to supporting its growth and development. Together, we can create a more inclusive and sustainable financial ecosystem
that benefits all Filipinos.

Emilio B. Aquino
Chairperson & CEO, SEC
My warm greetings to Fintech Alliance.ph as it releases its Philippines Fintech Report 2023.

As we are all aware, Financial Technology (Fintech) has been a key enabler during the pandemic, allowing continuous operations of
critical industries : despite the lockdowns and other limitations -- not least of which is the financial sector. Given this, we cannot help
but look forward to discovering the actual figures being generated by our fintech players. lnformation such as these will provide
guidance on key operational decisions by management teams, and give direction towards future goals.

At the lnsurance Commission, our vision is clear: To have strong, sustainable and globally competitive regulated entities, as pillars of
the economy, serving every Filipino.

Under today's societal, economic and financial landscape, such vision is only doable with the help of financial technology. Our
experiences in recent years have proven without doubt that the way forward is through digitalization. Which is why the Commission
issued several circular letters providing guidelines and policies for sandbox approvals related to Fintech innovations, which is a way
of encouraging our regulated entities to continue taking up the challenge of technological evolution in order to maximize efficiency
and market reach.

I hope that the information contained in your Annual Report will inspire our financial community to further improve their products
and services through continuous innovation. From our end, the Commission supports the endeavors to promote Fintech
advancements.

Again, my congratulations to Fintech Alliance.ph.

Reynaldo A. Regalado
Commissioner, Insurance Commission
The Credit Information Corporation (CIC), the country's own premier fintech GOCC, congratulates Fintech Alliance.PH and Fintech
News Philippines for the successful publication of the Fintech Philippines Report 2023.

The CIC, as the country's sole public credit registry with over 40 million data subjects and 135 million contracts, is geared towards the
further expansion of its valuable credit information database to foster a more sustainable and inclusive credit ecosystem wherein
financial technology, or "FinTech," plays a crucial role. Presently, 13 members of the Fintech Alliance.PH are already registered
entities with CIC. These FinTech companies contribute data to us and some are already enjoying the privilege of access to the CIC's
database. We also have 12 more Fintech Alliance.PH members in the pipeline for registration. In 2022, select Alliance members were
able to generate over 174 thousand credit reports, which is an increase of over fifty percent (50%) from the 111 thousand reports
generated in 2021.

As chronicled in this publication, Fintech Alliance.PH's initiatives for 2022 have been pivotal in fueling the rapid growth of the fintech
industry. Particularly, its close collaboration with the various governmental regulatory bodies as well as its efforts to build synergy
among industry players, have been instrumental in fostering the development of the overall Philippine digital financial services
landscape. For the CIC, we are especially excited for the implementation of our Memorandum of Understanding with Fintech
Alliance.ph which paves the way for the pilot program on harnessing credit data for scoring and analytics purposes among qualified
Alliance members to begin.

We at the CIC also commit to continuously champion Fintech Alliance.PH's future endeavors towards greater financial inclusion and
meaningful innovation in the country. This is ultimately for the benefit of every Filipino, especially those in the most marginalized and
vulnerable sectors of society.

Maraming salamat, at mabuhay kayo!

Ben Joshua A. Baltazar

President & CEO, CIC
The Department of Information and Communications Technology (DICT) extends its congratulations to Fintech Alliance.ph on the publication of
the Philippine FinTech Report 2023, which provides valuable insights into the current ICT landscape of the country. The FinTech industry has the
potential to address long-standing issues such as limited access to banking services, high transaction costs, and inefficiencies in traditional
financial systems. By leveraging cutting-edge and emerging technologies like mobile applications, blockchain, and artificial intelligence, FinTech
startups and incumbents alike are transforming the financial ecosystem, making it more inclusive, efficient, and customer-centric.

In the Philippines, the fintech industry has been growing at an unprecedented pace, revolutionizing the way individuals and businesses conduct
financial transactions. As a developing country with a substantial unbanked and underbanked population, the Philippines presents a fertile
ground for FinTech innovations to bridge the gap in financial inclusion and empower citizens with better access to financial services. Its growth
is driven by the harmonious collaboration of both government and private sector initiatives through the sound decisions of policymakers and
decision-makers. The role of regulators and government agencies in fostering this advancement is crucial and instrumental in creating a
conducive environment for FinTech startups and traditional financial institutions to innovate and thrive. With that, the DICT has been actively
supporting the industry by enhancing digital connectivity, improving cybersecurity, promoting digital literacy, and establishing an agile
bureaucracy.

Through various programs and initiatives such as the BroadBand ng Masa Program, which expands broadband infrastructures and sets up free
Wi-Fi sites across the country, Stimulating the Growth of Emerging Technologies in the Philippines (SET PH), Digital Startup Acceleration and
Development Program (DSDAP), and the implementation of the National Cybersecurity Plan the DICT shows its commitment to fostering a
progressive and secure digital environment for the FinTech sector. The Department is also promoting eGovPay under our eGov Super app which
aggregates all payment channels and gateways in a single system that simplifies and standardizes all payment processing and transactions.

As the number of its stakeholders continues to grow, the fintech industry is poised to flourish as the digital economy increasingly becomes an
integral part of the lives of Filipinos. We recognize its contribution to our nation-building efforts as it makes banking services more available to
our countrymen, enabling them to participate in and advance the country's digital economy.

Whether you are a key stakeholder, investor, regulator, or someone passionate about this industry, you are sure to find the Philippine Fintech
Report 2023 indispensable in making informed decisions that will promote the growth and development of the sector.

Together, let us work closely to ensure that the benefits of FinTech innovations reach every corner of the nation while safeguarding the stability
and integrity of the financial system.

Ivan John E. Uy
Secretary, DICT
I am deeply honored to be invited to write the foreword for FinTech Allianceʼs Annual Philippines FinTech Report. FinTech Alliance.PH has been one
of the organizations that remain an active partner in fostering stronger data privacy and protection in the country. Safeguarding personal data
while we continue to learn how to maneuver the constantly changing digital world is not easy. On that account, the Commission needs the full
trust and support of our stakeholders in successfully preserving our citizenʼs right to privacy. The continuous evolution of existing and emerging
interoperable information and communications technology (ICT) revolutionized the way we live today. These new technologies challenged our
traditional methods; it paved the way for the adoption of ICTs on how Filipinos conduct their businesses and how we consume and avail goods and
services, including financial services.

Financial technology continues to expand in the Philippines, which demonstrates its significance in the countryʼs current digital economy. Not
only the countryʼs flourishing digitalization is responsible for fintechʼs prompt acceptance, but also through a positive regulatory environment
and the governmentʼs endeavors toward financial inclusion. Fintech is among the leading edge in improving the economy. It contributes to
nation-building by enabling the technology which allows every Filipino to migrate from the old ways of doing things to the digital mode of getting
their products and services like paying bills online, mobile banking, investment, and the like.

To achieve a financially-inclusive Philippines while ensuring that the processing of personal data is secure and reliable has been one of my
guiding principles as the Privacy Commissioner. As partner-regulator, we at the NPC, recognize the potential of fintech in democratizing finance
while also acknowledging our indispensable duty to uphold the data privacy rights of our citizens. The Philippines Fintech Report 2023 initiated
by Fintech.PH is an important body of work, offering a dependable source of information on fintech and our present digital landscape. Such
publication is vital in educating and guiding industry practitioners, investors, the media, as well as policymakers and regulators – the NPC
included. This report is likewise instrumental as we persevere to release relevant policies and issuances that will better guide our stakeholders in
their compliance with the Data Privacy Act of 2012 (DPA).

From the publication of our various guidelines and advisories in promoting organizational accountability to personal information controllers
(PICs) and personal information processors (PIPs) up to protecting the fundamental human right of privacy, these inputs and bodies of work
published by our stakeholders hold great significance to the Commission.

Indeed, in a digital world with no borders, it is imperative that we work together in a manner that ensures a better digital experience for each and
every Filipino. Undeniably, this report is an essential document that can be referenced in formulating informed decisions towards the
development of the fintech sector. More than this, I envision that this report will also be utilized to form strategies that will continue to uphold the
rights of the data subjects and further comply with the DPA.

John Henry D. Naga

Privacy Commissioner & Chairman, NPC
With the rising importance of technology in shaping the financial landscape, the Philippines Fintech Report 2023 surveys the
financial technology terrain and presents several forecasts on the industryʼs evolution.

The Anti-Money Laundering Council (AMLC), for one, has long recognized the critical role of fintech. In 2018, the AMLC released the
Guidelines on the Digitization of Customer Records and a study that analyzed the profile of transactions passing through
Philippine-regulated virtual asset service providers. The AMLC also continually engages with technology-driven sectors, such as
remittance and payments services companies to augment its intelligence-gathering. Likewise, the AMLC participates in multilateral
projects with other financial intelligence units to contribute to and learn from the global and regional discourse on emerging
technologies.

As firms and consumers alike have been compelled to tap into technology to adjust to the new economy of physical distancing and
electronic payments, the pandemic may have buoyed demand for regulatory and financial technology solutions.

The AMLC joins FinTechAlliance.ph in enabling initiatives that support the growth of financial technology and its awareness. In this
new economy, this report offers features insights and guidance for primary stakeholders, such as regulators, in executing thorough
and mindful resolutions to further the progress of the sector.

Matthew M. David
Executive Director, AMLC
 CONTENTS
01 Philippines at a Glance

02 Philippines’ Fintech Landscape

03 Regulatory Developments
Philippines Payments

04 Cryptocurrency

05 Philippines Digital Banking

06 Key Regulatory Milestone

Photo by Mari Gimenez

on Unsplash.com
01 Philippines at a Glance
The Philippines’ Flourishing Growth in
Banking and Connectivity

6.4%
GDP growth (1Q of 2023)
115,559,009
Total population (2022)
93.2M (+9.2%)
Number of deposit accounts Q3 2022
84.9%
Smartphone penetration
(Growth from Q3 2021) (2022)

6%
GDP forecast (2023)
47.9 %
Urban Population
23,022 (+1.06%)
Number of ATMs 2022 Q2
84.75M
Number of Internet users
(Growth from 2020 Q4) (2022)

US 3,623
GDP Per Capita (2022)
30M
Filipinos aged 10-24
28.3
Number of access points per 10,000
97.5%
Mobile Broadband Connections
adults Q3 2022 (2022)

5.4%
Inflation forecast (2023)
6M
Number of micro-enterprise
55
Number of banks with digital
71.32M
Mobile internet user
onboarding capability 2022 penetration

Sources: BSP Monetary Policy Report - November 2022, latest Financial Inclusion Survey (2022 Q2), Statista, Philippine Statistics Authority (PSA)
*Mobile broadband connections - number of sim cards that are 3G and above (as percentage of total population)
02 Philippines’ Fintech Landscape
Philippines Fintech Map 2023
Remittance (11%)

KYC/Regtech (1%)

Lending (21%)

Blockchain/Crypto (5%)

BNPL (3%)

Wealthtech (3%)

Proptech (1%)

Payment (38%) Insurtech (3%)

Digital Banking* (3%)

Comparison (1%)
Crowdfunding (1%)

e-Wallet (9%)

Source: Fintech News Philippines *Digital Banking (Banks + Digital-centric apps combined)
 02 Philippines’ Fintech Landscape
Philippines Fintech Map 2023 (Total: 299 Fintech Companies)
PAYMENTS (107) e-WALLET (27)

LENDING (59) LENDING (BNPL) (10) BLOCKCHAIN/CRYPTOCURRENCY (16) INSURTECH (9) REMITTANCE (31)

WEALTHTECH (10) DIGITAL BANKS (6) DIGITAL-CENTRIC KYC/REGTECH (11)

BANKING APPS (4)

PROPTECH (3) COMPARISON (3) CROWDFUNDING (3)

*Note: Some companies appear in more than 1 category to better reflect the nature of their businesses, but they still count as one towards the total. Source: Fintech News Philippines*
03 Regulatory Developments
Cultivating a Digital Financial
Ecosystem Electronic Money
Issuers (EMIs)
Updated Digital Banking
Guidelines

BSP Circular 1166 updates e-money and

Recognising the need to foster fintech innovation to EMI rules in the Philippines with new
achieve financial inclusion goals, regulators in the requirements for risk management, The BSP also updated guidelines to its
Philippines are laying the groundwork for digital interoperability, transaction limits, and digital bank framework of December
financial services and digital-first business models, liquid assets. A three-year moratorium on 2020, with regard to corporate and risk
non-bank EMI licenses is in place for governance of digital banks as well as the
introducing new digital banking licenses, creating a assessment and regulatory enhancement. applicable prudential regulations on
real-time payments system InstaPay, and establishing a EMIs have higher capital requirements, capital, leverage, and liquidity.
standardized QR code payment network, QR Ph. with large-scale EMIs at PHP 200 million
and small-scale at PHP 100 million.

Existing Thrift, Rural And Updated electronic Implementation of an industry

Cooperative Banks Know-Your-Customer (e-KYC) sandbox for digital finance
innovations
In 2022, the BSP approved the regulatory
Updated electronic Know-Your-Customer sandbox rules formalizing the “test and
According to the new regulations, thrift, (e-KYC) for the use of digital
rural, and cooperative banks might be learn” approach for startups and
identification and verification as part of innovators to experiment with new
required by the BSP to hold a minimum the customer onboarding process of
capital of PHP 1.0 billion. This rule applies financial products and services in a
BSP-supervised financial institutions controlled environment. BSP Circular No.
to banks whose main offerings are (BSFIs). The enhanced rules also
financial products and services that are 1153, or the Regulatory Sandbox
highlights the acceptance of the new Framework, enumerates the guidelines
handled digitally from start to finish, Philippine Identification System
utilizing platforms and channels akin to for a "controlled, time-bound, live testing
(PhilSys)-enabled e-KYC system by the environment which may feature
those used by digital banks. Philippine Statistics Authority (PSA). regulatory waivers at the (BSPʼs)
discretion."
03 Regulatory Developments
Open Finance in the Philippines
Open finance is an emerging trend in the Philippines, offering the potential to revolutionise the financial landscape and empower millions of Filipinos.
Leveraging technology, open finance aims to provide greater access to financial services, addressing challenges and promoting financial inclusion.

Key Drivers of Open Finance Government Initiatives for Participation and Duration of Expected Outcomes and
in the Philippines Open Finance Open Finance PH Pilot Benefits

Growing Adoption of Digital Payments: National Retail Payment System (NRPS): • Ten institutions will participate, • Valuable insights from the pilot
• Digital payments are expected to • Launched by BSP in 2019. including banks, non-bank will shape a comprehensive open
reach $20 billion in value by 2025, • Promotes digital payments and financial institutions, fintech finance framework for the
fostering the shift towards open simplifies financial service companies, and government Philippines.
finance. accessibility for Filipinos. agencies. • A level playing field will be created,
• Increased digitalisation enables • Open Finance PH Pilot (Launched in • Third-party service providers will fostering innovation, competition
easier and more accessible 2023): facilitate data sharing among and enhancing consumer welfare
financial transactions for - Supported by BSP, International participants. and protection.
Filipinos. Finance Corporation (IFC), and • The pilot will run for 18 months,
• Fintech Startups Revolutionizing World Bank (WB). commencing from June 2023.
Financial Services: - Aims to create a data-sharing
- Innovative fintech companies framework among financial
leverage technology to institutions, fintech companies,
provide accessible and and stakeholders.
affordable financial products. - Tests various use cases like
- These startups offer an account aggregation, payment
alternative to traditional initiation, credit scoring, and Aligned with Broader Initiatives
banking services, reaching a product comparison.
wider audience. - Explores challenges and benefits
concerning data privacy, security, • The Open Finance PH Pilot is part of the collaborative efforts of BSP, IFC, and WB to
interoperability, and consumer support the digital transformation of the Philippine financial sector.
protection. • It aligns with the Philippine Development Plan 2023-2028 and the National Strategy for
Financial Inclusion 2022-2028.
03 Philippines Payments
Fostering Green and Sustainable Financing
in the Philippines
BSP intends to introduce further incentives to promote sustainable and
green financing in the Philippines. These incentives, including an increased
single borrower's limit (SBL) and a zero reserve requirement rate, are part of
the BSP's Strategy for Sustainable Central Banking.

The BSP initiated the 11-Point Strategy for Sustainable Central Banking (SCB)
in December 2022, advocating sustainability principles and practices both Green/Sustainable Categories
within its own remit and the broader financial system of the Philippines. with Approved Loans/Financed by Banks

BSP highlights among universal/commercial banks (U/KBs) in August 2022, Energy Efficiency 50%
75% of respondent banks have financed or approved loans supporting
Renewable Energy 89%
green/sustainable projects, with total outstanding loans of P829.7 billion and
Green Buildings
US$14.35 million as of 30 June 2022.
50%

Sustainable Water
& Wastewater Management 56%

The total outstanding loans of the respondent banks to green/sustainable Pollution Prevention & Control 17%
projects represent approximately 7% of the Philippine banking system's total Sustainable or Zero-Carbon 22%
loan portfolio as of end-June 2022. Transportation

Promoting Resource Efficiency,

Circular Economy 26%

The top green/sustainable activities or projects supported by these banks Promoting Resilent Food Systems 22%
are renewable energy (89%), sustainable water and wastewater management
Transition Activities
(56 %), and energy efficiency and green buildings (both 50%).
17%

Others 39%
0% 20% 40% 60% 80% 100%

Source: BSP Sustainability Report 2022

03 Philippines Payments
Fostering Green and Sustainable Financing
in the Philippines 01 Conduct a comprehensive vulnerability assessment of the
Philippine economy and financial system, accounting for
physical and transition risks and other environmental risks.

02
Enhance mandatory disclosures of climate-related financial
risks by all banks in the Philippines, building on the Task
Force on Climate-related Financial Disclosures (TCFD)
recommendations.

03 Issue guidance on mandatory climate stress testing for

banks.

11
BSP AS ENABLER, MOBILISER, & DOER
04 Integrate environmental and social risks into
prudential practices.

NTAL
Financial Supervision:

ME Reserve Management:
05 Incorporate macroeconomic effects of climate

point
Corporate and risk change into monetary policy analysis.

N ER
governance standards; Participation in Green
Sustainable Finance Bond Fund launch by the
BIS
BL
IRO

06
Framework Environmental
Consider the incentive schemes for the promotion of
and Social Risk

SO
A

Strategy for green lending by banks.

EN

Management Framework
ENV

MOB
Sustainable

CIAL
ILIZER Central Banking
07 Include sustainability considerations in portfolio
management and risk management of BSP and sign the
UN Principles for Responsible Investment (UN PRI)

Building Management:
08 Develop a task force for inclusive green finance.
GO

New Clark City, BERDE

DOE Certification
ER
Operations: R
09
V

NA
Include climate-related financial disclosures in the
No to Single-Use Plastic Annual Report of BSP.

NCE
Policy, MB Paperlite
Facility; iHRIS

SUSTAINABLE CENTRAL BANKING ROADMAP 10 Adopt sustainable practices for own facilities and
operations of BSP.

Source: Sustainable Central Banking Framework, Bangko Sentral ng Pilipinas 11 Roll out a capacity-building program for all staff in
relevant areas.
03 Philippines Payments
Digital Payments Statistics
- Nearly half of retail payments in the country are now digital

Share of Digital Payments to Total Payment Transactions

42.1% ACTIVE E-MONEY TOTAL AMOUNT OF
ACCOUNTS E-MONEY TRANSACTIONS
Share of Digital 30.3% 41.0
2410

Payments by 14%
20.1% 40
37.4
2500

Volume in 2022 10% 35

1% 2000
30

2013 2018 2019 2020 2021 2022 1485

VOLUME (MILLION)

VOLUME (MILLION)
25 1500

44.1% 20 17.9 1090

40.1% 963

Share of Digital 15 1000

Payments by 20% 24%

26.8%
10
VALUE in 2022 5
5.0 500

8% 2.2

0 0
2013 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2017 2018 2019 2020

Source: 2022 Status of Digital Payments, Bangko Sentral ng Pilipinas

03 Philippines Payments
Digitising Key Payment Streams
The volume of PESONet transactions amounted
PESONet MBS
to ₱1.40 trillion” (US$25.48 billion) for the first PESONet multiple batch settlement (MBS) was launched on 24 January
quarter of 2022, representing a 47.4% growth 2022, increasing the daily batch settlement to two cycles within a
from the first quarter of 2021. banking day. This service enhancement provides heightened
efficiency for individuals and businesses in managing their cash flows.
Similarly, the volume of InstaPay transactions for With MBS in place, PESONet users can receive funds at an earlier time
the same period increased to ₱772.3 billion
than the usual end of banking day, enabling users to settle payments
(US$14.06 billion), posting a 49.3% growth over
the same period. faster, and consequently, enhancing PESONetʼs viability as an alternate
to the paper-based check system.

Launched Initiatives in 2022

PESONet MBS + Bills Pay Ph
* JANUARY NOVEMBER
The development of new and innovative payment
streams to digitize key payment use cases aims
to make digital payments more accessible,
ubiquitous and convenient. Bills Pay Ph
Bills Pay Ph was launched on 29 November 2022. It seeks to
Strategic initiatives pursued by the BSP in 2022,
address the currently fragmented bills payment facilities in the
in collaboration with the payments industry, led
by the Philippine Payments Management, Inc. country. With this facility, businesses that are onboarded as
(PPMI), included: billers and which prefer to collect payments digitally are no
longer limited to bilateral arrangements with multiple payment
First, the Multiple Batch Settlement of PESONet service providers. Businesses are also able to capture a wider
transfers; and Second, the Interoperable Bills base of end-users that prefer to pay their bills digitally.
Pay Facility.

*Multiple Batch Settlement Source: 2022 Status of Digital Payments, Bangko Sentral ng Pilipinas
04 Cryptocurrency
Regulating Virtual Assets
in the Philippines
List of Virtual Asset Service Providers (VASP)
BSP introduced the Guidelines for Virtual Asset Service Providers (VASPs) in 2021. As of 30 April 2023
These guidelines established a comprehensive regulatory framework for virtual
currency exchanges in the Philippines.

As part of the framework, VASPs must obtain a license from the BSP before
commencing operations in the country. The guidelines emphasise effective Know
Your Customer (KYC) and AML/CTF measures.

As of 30 April 2023, there are 19 registered VASPs in the Philippines with 5 inactive or
inoperational. These VASPs provide various services, such as trading, remittance,
and asset management, to cryptocurrency users in the country.

Source: TRISD Database

04 Cryptocurrency
Regulating Virtual Assets
in the Philippines 16 approved cryptocurrency exchanges
The central bank of the Philippines, Bangko Sentral ng Pilipinas (BSP), has so
far approved 16 cryptocurrency exchange service providers.

On January 25, 2023, the SEC presented draft rules encompassing

cryptocurrencies, "tokenised securities products" and other
blockchain-based financial products. However, the SEC has delayed
the rollout to ensure the protection of investors and prevent potential
losses following the collapse of the FTX exchange.

The Philippine government has recently implemented a capital gains

tax of up to 15% on cryptocurrency transactions to regulate and tax the
growing digital asset market.

By 2024
There have been discussions by the government about implementing
new taxes on crypto by 2024, causing concerns that Manila may adopt
Indiaʼs approach and levy a 30% flat tax on all crypto earnings.

3 year moratorium for new VASPs still in effect, except for those pre
approved by BSP
The BSP confirmed that the regular application window for new VASP
licenses will wind down for three years, and will be a subject to
reassessment based on the current market developments.
Bitan Moneytech has been delisted as of June 30, 2022 and is no longer on the
above BSP-approved list.
04 Cryptocurrency
Cryptocurrency Regulation in The Philippines
BANGKO SENTRAL NG PILIPINAS (BSP)

February 6, 2017 January 25, 2021 As of January 31, 2023

BSP issued Circular NO. BSP introduced the Guidelines for Virtual There are 19 registered
944 in 2017, acknowledging Assets Service Providers (VASPs). As part
virtual currencies as a valid of the framework, VASPs must obtain a
VASPs in the Philippines
payment method. license from the BSP before commencing to date.
operation in the country.

2017 2018 2019 2020 2021 2022 2023

February 8, 2018 December 22, 2022

SEC issued an advisory on SEC cautioned the public January 25, 2023
initial coin offerings (ICOs) and against using unregistered
cryptocurrency investments. exchanges within the country. SEC presented draft rules for public review
resulted to financial products and services
encompassing crytocurrencies and digital
financial products.

SECURITIES AND EXCHANGE COMMISSION (SEC)

05 Philippines Digital Banking
Digital Banks Boosting Financial Inclusion RECEIVED DIGITAL BANKING LICENSE BY BSP

KEY PLAYERS
Since getting the green light to operate by August 2022, the digital only banks have
already been setting benchmarks, boosting financial inclusion efforts such as:
Licensed on Licensed on Licensed on

• Government digital-only bank Overseas Filipino Bank introduced new digital Jul 2020 Mar 2021 Q4 2021
account opening platform for overseas Filipinos, overseas Filipino workers, No. of Users No. of Users No. of Users
and their beneficiaries to securely and conveniently submit all requirements 62K 1M 200K
online. December 31, 2021 As of 2022 As of July 2023

• UnionDigital Bank and Tala partnered to launch an e-wallet for unbanked

Filipinos, offering easy loan applications, money transfers, and bill
payments.
Licensed on Licensed on Licensed on

• UNO Digital Bank partnered with 1Sari Financing Corporation to provide Aug 2021 Nov 2020 Sept 2021
financial solutions to help sari-sari store owners and micro-enterprises No. of Users No. of Users No. of Users
grow. 1.1M 1.7M 2.3M
As of 2023 As of 2022 As of 2022

• Tonik has already surpassed 1 million customers less than a year into its full
launch. (January 2023) DIGITAL-CENTRIC BANKING APPS*
Exited 2022
• GoTyme now has more than 300 digital kiosks in the Philippines, with plans
to expand to 450 by end-2023.
Licensed on Licensed on Licensed on Licensed on
• Maya launched the "My Money. My Bank. My Way" campaign, aiming to May 2020 Jul 2020 May 2019 Jan 2019
popularize digital banking and empower Filipinos with innovative,
personalized, and rewarding money management solutions. (February 2023) No. of Users No. of Users No. of Users No. of Users
328K 4M 380K 7M
As of May 2023 As of 2022 As of 2022
05 Philippines Digital Banking

Market Value:
$ Billion

Jan 2021 Jan 2023

Over the past two years, 0 5 10 15 20

the three largest fintechs Change in Valuation

+3.0
and digital banks in the
Leading Fintechs
& Digital Banks1

Philippines generated
+2.0
Top 2 Banks 2

more market value than Other Traditional

+0.2

all traditional banks

Banks3

combined.
1 Data unavailable for GoTyme Bank, UnionDigital Bank, and UNObank.
2 BDO Unibank and Bank of the Philippine Islands.
3 Metrobank, Philippine National Bank, China Banking Corporation, Rizal
Commercial Banking Corporation, Union Bank of the Philippines, Security Bank

Source: Corporate Performance Analytics by McKinsey; PSE Edge

06 Key Regulatory Milestone
BSP Pushes for
eGov PH
Initiatives:

Financial Inclusion
Based on the 2022 Financial Inclusion Survey of the BSP,
financial account ownership rose to 65.6% in 2022 from Government Philippine Mobile or eGov PH is an online one-stop shop application
56% in 2021. This is equivalent to 88.7 million Filipino developed by the Department of Information and Communications Technology
adults. (DICT) that aims to enhance the efficiency, accessibility, and accountability of
informational and transactional exchanges between the government and its
Access to Bank Accounts: citizens.
E-money accounts grew to 49% in 2022. The number of
The application is embedded with various features, which include
Filipino adults with bank accounts is 50.3 million from 1. eGov Pay where users can pay utility bills and fees for government services and
42.9 million in 2021. The number of Filipinos without an process such as contributions to Government Service Insurance System (GSIS),
account dropped to 34.3 million from 51.2 million. Social Security System (SSS), and Philippine Health Insurance Corporation
(PhilHealth);
With E-money accounts Without E-money accounts 2. Philippine eCommerce Platform, which aims to help MSMEs and farmers grow
60 and expand their businesses by allowing users to receive profits in full;
3. eLGU, which local citizens can use to access and transact online local
50
49%
50
51.2 government social services, such as social amelioration programs and
50.3
33% applications for business permits, barangay clearances, and police clearances.
40 42.9 40
Value (million)

The DICT is currently in discussion with private gateway payment services on the
Value (million)

30 30 34.3
integration of online payment services in eGov PH. Development of the application
commenced in November 2022 and was launched in the 2nd quarter of 2023, with
20 20 additional functionalities gradually rolled out in the succeeding quarters of the
year.
10 10

0 0
2021 2022 2022 2021
06 Key Regulatory Milestone
Paleng-QR Ph
The Paleng-QR Ph program, jointly developed by the BSP and the Department of the Interior and Local
Government (DILG), aims to build the digital payments ecosystem in the country by promoting cashless
payments in public markets and tricycles.

Capitalising on the QR Ph initiative, the program seeks the policy championship and enjoins LGUs to push for
the acceptance of vendors, community shopkeepers,and tricycle operators and drivers in all cities and
municipalities in the country.

The main objective of the program is:

• To promote account ownership using QR Ph which is the national QR Code standard that allow
transfers between participating banks and e-wallets. In 2022, the City Governments of Baguio, Davao,
Tagbilaran, LapuLapu, Naga, Pasig, Antipolo, and Alaminos issued ordinances on the implementation of
the Paleng-QR Ph program.

• Support the digital transformation of rural financial institutions and other last-mile providers,
including microfinance institutions.

The Cooperative Development Authority (CDA) launched the online marketplace platform Coopbiz.ph in 2022,
which aims:

• To bring local market products produced by merchants and vendors of CDA registered cooperatives to the
domestic and global market chain through a digital platform with integrated payment and logistics
providers.

• To enable seamless transactions with international customers, the CDA engaged cross-border
payment providers for online transactions and international logistics providers for courier services.
06 Key Regulatory Milestone

ANNUAL PLAN TARGETS RESPONSIBLE

BASELINE MEANS OF
INDICATOR VERIFICATION AGENCY/INTER-
(YEAR) 2023 2024 2025 2026 2027 2028 AGENCY BODY
The indicators and targets set during Outcome 1: Financial inclusion broadened and deepened
the Philippine Development Plan Proportion of adults (15 years
2023-2028 to promote an inclusive, and older) with an account Bangko Sentral
at a bank or other financial 55.6 ≥70.0 ≥70.0 ≥75.0 ≥75.0 ≥80.0 ≥90.0 ng Pilipinas
innovative, and healthy financial institutions or with a mobile- (2021) (BSP) Demand
BSP
Side survey
sector. money service provider
increased (%)
Proportion of E income socio-
economic class with accounts to 55.1 ≥60.0 ≥60.0 ≥65.0 ≥65.0 ≥70.0 ≥75 BSP Demand BSP
proportion of ABC income class (2021) Side Survey
with accounts increased (%)

Outcome 2: Financial innovation accelerated and strengthened

a/ Refers to the percentage of digital payments volume over total retail Volume of digital payments over Payment System
payments volume where digital payment refers to a payment
transaction between two parties where both the payer and payee
total retail payment transactions 30.3 50.0 52.0- 54.0- 56.0- 58.0- 60.0- Oversight BSP
utilized digital payment instrument/channel in making the transaction. in the country increased (%)a (2021) 54.0 58.0 62.0 66.0 70.0 Department
While retail payments refers to payments that meet at least one of the Dashboard
following: (a) the payment is not directly related to a financial market
transaction; (b) the settlement is not time-critical; (c) the payer, the Number of financial technology 216 221 226 231 240 250 260 Fintech Alliance SEC
payee, or both are individuals or non-financial organization; or (d)
either the payer, the payee or both are not direct participants in the
(fintech) companies increased (2021)
payment system that is processing the payment.
Outcome 3: Financial sector health ensured
b/ Non-banks comprised of BSP-supervised Investment Houses,
Financing Companies, Investment Companies, Securities Ratio of Financial Systemʼs Total 149.4
Dealers/Brokers, Pawnshops, Lending Investors, Non-Stock Savings Assets to gross domestic product 129.5 129.5 129.5 129.5 129.5 129.5
and Loan Associations (NSSLA), Credit Card Companies, Government (2021)
Non-bank Financial Institutions (i.e., Philippine Guarantee Corporation
(at current prices) increased (%)
[PHILGUARANTEE] and Small Business Corporation[SBC]), and
Authorized Agent Banks (AAB) Forex Corporations, wherein assets are a) Banks and Non-Banksb BSP, Government
reported gross of allowance for probable losses and net of Report on Total
Resources of the Service
depreciation. Data on non-banks are based on Consolidated Statement 135.0 >116.0 >116.0 >116.0 >116.0 >116.0 >116.0 Philippine Financial Insurance
of Condition, except for NSSLAs which is based on Financial Reporting System, Social
Package. Non-bank institutions also include Social Security System (2021) System, National
(SSS), Government Service Insurance System (GSIS), and private Income Accounts Security System,
insurance companies (i.e., life insurance companies, non-life insurance etc.c
companies, and professional reinsurers), wherein assets are reported
net of allowance for probable losses and depreciation. b) Insurance Commission (IC) 11.7d IC Annual Reports,
supervised 11.0 11.0 11.0 11.0 11.0 11.0 National Income IC
c/ Bangko Sentral ng Pilipinas, GSIS, SSS, and other Government Non-Bank (2021) Accounts
Financial Institutions (e.g., PHILGUARANTEE and SBC).

Data sourced from unaudited financial statements submitted by

c) Cooperative Development
d/
Insurance Commission-regulated entities for Q4 2021. Authority (CDA)-supervised 2.7 2.5 2.5 2.5 2.5 2.5 2.5 CDA
cooperatives (less coop banks (2021)
and insurance coops)
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