Conglomerates investing more in fintech

MANILA, Philippines — Some of the country’s biggest conglomerates are now pouring in more money in financial technology or fintech as more and more Filipinos embrace the digital way of life.

The Sy-owned SM Group, the Aboitiz family’s conglomerate, the Lucio Tan Group and the Gokongweis are just some of the businesses that are investing more on fintech.

“We have to. We don’t have any other choice. We have to go to fintech. Anything that is digital, we have to embrace,” Teresita Sy-Coson, vice chairman of SM Investments Corp. and BDO Unibank said in a recent interview.

Erramon Aboitiz, head of the Cebu-based Aboitiz conglomerate, shared the same view.

In an interview with The STAR, Aboitiz said the group is investing more in fintech because of the digital revolution.

“It’s now necessary to invest in fintech,” Aboitiz said in a recent interview. 

The Aboitiz Group owns Union Bank of the Philippines, among the country’s top banks. 

The group of taipan Lucio Tan has also been exploring ways to increase its investments in fintech. 

For instance, the Tan-owned Philippine National Bank (PNB), together with Voyager Innovations, the digital innovations arm of PLDT and Smart, has already launched a quick salary service that provides quick and convenient loan application and approvals via any mobile device.

JG Summit Holdings Inc., the conglomerate of the Gokongwei family, has also strengthened its presence in the Fintech space.

Its subsidiary Express Holdings has partnered with China-based Oriente to set up a digital financial service company that seeks to address underbanked consumers and MSMEs in the Philippines.

Fintech companies are those that use technology – often in the form of online platforms or mobile applications – to enable alternative delivery of financial products or services. 

With fintech, banks could capture the growing volume of digital payments for consumer goods and services.

Through this mode of payment, banks could seize opportunities from the growing middle class whose capacity to spend is expanding along with the country’s growing economy.

Other conglomerates such as the group of corporate tycoon Manuel V. Pangilinan and Ayala already have fintech businesses.

The MVP Group’s PayMaya Philippines is the pioneer and leader in digital financial services in the Philippines. PayMaya has made mobile and online payment transactions more accessible to Filipinos nationwide with revolutionary payment technologies.

Ayala-owned Globe Telecoms, meanwhile, has Mynt which provides innovative and first-in-world fintech solutions to consumers, merchants, and organizations. Its purpose is to enable financial access for consumers and merchants by disrupting traditional channels through digital financial technology services. 

It operates two fintech companies: GCash, a micropayment service that transforms the mobile phone into a virtual wallet for secure, fast, and convenient money transfer, and Fuse, a tech-based lending company that enables Filipinos to get personal and business loans through use of mobile technology, alternative data, and innovative credit scoring methods. 

Joey Concepcion, presidential adviser on entrepreneurship, is also pushing for fintech.  

He said banks indeed need to be in the fintech space to help make lending more accessible to micro, small and medium enterprises.  

“Banks will have to embrace fintech. It’s really to help micro, small enterprises,” he told The STAR.

He said there is greater democracy when there is a digital market place in the country.