Philippine financial technology (fintech) companies should take advantage of growing market opportunities by taking aggressive action, market intelligence and advisory services provider International Data Corporation (IDC) said.
IDC Associate Vice President Michael Araneta urged local companies “to … move swiftly both locally and regionally”.
IDC, Araneta said, expects 2018 to be a banner year for Asia Pacific fintech companies going regional and following the footsteps of online payments solutions provider Alipay and ride-hailing firm Grab.
IDC Philippines head of operations Jubert Alberto noted a wide-ranging market for fintechs that includes overseas Filipino workers, a rapidly growing middle class, and large population of the unbanked in far-flung areas.
Alberto acknowledged the role of telecommunications companies PLDT and Globe Telecom in adopting a fintech mindset.
“These fintechs rise from the 3rd platform provide more novel and nimble ways in terms of accessing financial service via smartphones. Their burgeoning partnerships with banks and insurers have paved the way for more financial inclusions and better economic opportunities,” he said.
IDC identified the top 10 fast-growing fintechs in the country, six of which it said excelled in payments services: Acudeen; Ayannah; Bloom Solutions; Coin.ph; Lendr; LoanSolutions.ph; Mynt; PawnHero; PayMaya; and Satoshi Citadel Industries.
“It’s very interesting to see the rise in public-private partnerships within the fintech domain in the Philippines. This is unique for the Philippines, with many non-government financial institutions that are favoring collaborating with fintechs to address the needs of current and potential customers. The disruption is largely visible in payments including remittances and money transfers,” Araneta said.