January 23, 2023 | 12:02 amFinancial technology is not only heard but is mostly felt as well in recent years in the Philippines. The marriage between finance and innovation have been so far fruitful and seemingly limitless. Data from a study done in 63 countries showed that fintech is positively and significantly correlated with financial stability . This simply tells us that the Philippines is on the right track when it comes to innovation in finance.
With the continuous rise of technology since the late ’90s, we’ve seen the disruption of the traditional finance industry. Smartphone owners — which account for the majority of Filipinos — can now participate in the formal banking system without having to leave their homes, allowing convenience, safety, ease, and inclusion when it comes to financial transactions. Adapting to the changing trends, the finance industry has learned to be quick and agile as new innovations are introduced.
There’s still no stopping fintech’s growth against all odds, including the wrath of the COVID-19 pandemic. In fact, the event has been a catalyst for innovation. The pandemic has paved the way to innovation for many finance firms in the country. Those with a ton of paperwork for transactions in the past had to develop digital ways to transmit documents and communicate with their colleagues and teams. Lockdowns drove significant increases in the adoption of finance-related mobile applications.
UnionBank went as far as initiating further artificial intelligence exploration to aid in improving the state of financial inclusion and improve risk management in the country, through AI-powered alternative credit scoring and risk models, to make it possible to offer loans and credit to a broader range of individuals and small businesses.