PH, Australia boost fintech cooperation
By Ma. Joselie C. Garcia
FinTech Alliance.ph, the Philippines’ leading digital trade organization, and the Australian government through the Australian Trade and Investment Commission (Austrade), signed a memorandum of understanding (MOU) on Wednesday, Nov. 15, to promote trade and investment across the fintech sector in the region.
The Australian Embassy said that the MOU is set to strengthen Australia and the Philippines’ engagement on fintech policy and regulation, providing increased access to capital opportunities and addressing 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,” Australian Ambassador to the Philippines HK Yu PSM said.
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 as declared by President Ferdinand R. Marcos Jr. and Australian Prime Minister Anthony Albanese, as well as 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 this partnership, FinTech Alliance.ph and Austrade will organize initiatives to innovate financial services in the Philippines and Australia leading to enhanced commercial opportunities.
“We are very honoured 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,” Fintech Alliance.ph Founding Chairman Lito Villanueva said.
The two organizations will be guided by the Philippines Development Plan (PDP) 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 will also 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 will 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.
Australia is home to strong fintech innovators and early adopters, with its robust and dynamic fintech ecosystem backed by a stable regulatory environment and policies that encourage innovation.
Australia’s areas of innovation include payment systems reforms, enhanced digital assets, and open data regulations.
The Philippine's fintech sector is also undergoing a remarkable transformation, fueled 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.