Strong fundamentals—including a youthful, urbanizing population, a rapidly growing economy and expanding middle class, and widening mobile and internet usage—will likely drive the digital transformation of the Philippine financial sector. But credit also goes to a supportive regulator that has put into place the critical requisite payment frameworks and regulatory standards to support its development.

There is a particular optimism about the Philippines due to the country's unique geography and its comprehensive cell phone coverage allowing service to reach even remote areas. 

This paper examines the current contours and activities of the FinTech sector in the Philippines, the trends driving its development, and ongoing concerns about financial literacy, the domestic startup ecosystem, and collaboration with the traditional banking sector. The paper highlights five areas of important focus for those working to transform the country’s current paper-based financial sector into something far more inclusive and efficient:

1. The need for digital transformation
2. The drivers of the coming digital transformation
3. The role of government and the regulatory environment
4. The Philippine FinTech landscape
5. Outstanding challenges for the development of the FinTech sector