Philippines, Australia partner for fintech cooperation

MANILA, Philippines — The Philippines and Australia entered into a partnership to promote trade and investment across the financial technology (fintech) sector, marking a major step towards technological collaboration.

FinTech Alliance.ph founding chairman Lito Villanueva signed the memorandum of understanding (MOU) with Australian Trade and Investment Commission (Austrade) general manager for Southeast Asia Mukund Narayanamurti.

This tie up will strengthen the Philippines and Australia’s engagement on fintech policy and regulation to provide increased access to capital opportunities and address barriers.

“Australia and the Philippines’ digital economies are growing rapidly and dynamically – there is so much more that we can do to realize the full potential of our trade and investment relationship,” said Australian Ambassador to the Philippines HK Yu PSM, FCPA.

This exciting partnership will enhance fintech cooperation between our countries, and provide fintech companies the support that they need in order to grow our digital economies,” Yu added.

The partnership follows the elevation of the Philippines-Australia relationship to a Strategic Partnership declared by Philippine President Marcos and Australian Prime Minister Anthony Albanese, and the Australian government’s economic pivot to Southeast Asia through the launch of Invested: Australia’s Southeast Asia Economic Strategy to 2040 in September.

Under the tieup, FinTech Alliance.ph and Austrade would organize initiatives to innovate financial services in the Philippines and Australia leading to enhanced commercial opportunities.

“We are very honored to be working together with the Australian government to further accelerate the rapid progress we are making in the fintech and trade industry, as well as for our digital economy. Through this invaluable partnership, we will be able to drive massive digital transformation for all, and continue to change the lives of our countrymen,” Villanueva said.

The two organizations will be guided by the Philippines Development Plan 2023-2028 and Australia’s Southeast Asia Economic Strategy, which sets out a practical pathway to increase Australia’s two-way trade and investment with the Southeast Asia region, including in the Philippine digital economy.

The partnership also aims to foster information sharing on emerging market trends and developments, including the use of new technologies to improve the fintech ecosystem in their respective markets.

It would also provide a framework for the Philippines to look more closely at Australia’s experience in open banking. At the same time, Australian fintech firms can learn more about the rapid development of the Philippines digital economy.

The Philippines fintech sector is also undergoing a remarkable transformation, fuelled by the country’s rapid digitalization, a supportive regulatory framework, and concerted efforts to enhance financial inclusion.

The Bangko Sentral ng Pilipinas aims to shift 50 percent of all payment transactions to digital, and to onboard 70 percent of adult Filipinos into the formal financial system by the end of this year under its Digital Payments Transformation Roadmap.