SynerFi, an open payments platform focused on enhancing access for smaller financial institutions, is advancing the digital transformation of eight rural banks across the Philippines. By integrating these banks into the InstaPay ecosystem, SynerFi is enabling them to offer modern digital banking services that were previously the domain of larger, mainstream banks. This development marks a significant step towards bridging the financial inclusion gap, particularly for rural communities that have long been underserved by traditional banking networks.

“This marks the beginning of empowering the underserved banking sector by enabling them to offer digital banking services that are otherwise available only to mainstream and traditional banks,” according to Winston Damarillo, president and chief executive officer of Higala.

The initial group of rural banks onboarded includes Rural Bank of San Antonio, Inc.; Rural Bank of Lipa City (Batangas), Inc.; Progressive Rural Bank, Inc.; Banco Abucay, Inc.; Rural Bank of Hermosa (Bataan), Inc.; Money Mall Rural Bank, Inc.; First Philippine Partners Bank, Inc. (A Rural Bank); and Lagawe Highlands Rural Bank, Inc.

Lito Villanueva, Executive Vice President and Chief Innovation and Inclusion Officer of Rizal Commercial Banking Corporation (RCBC), highlighted the importance of this development, “Connecting rural banks to Instapay and the wider digital ecosystem is not simply an act of digitalization, but a deeper commitment to accelerate financial inclusion in underserved areas. SynerFi continues to demonstrate its promise to drive financial access beyond urban areas and materialize the government’s sustainable agenda. RCBC is excited to welcome more participants with the shared mission to make banking services accessible to all Filipinos into the instant payment ecosystem.” RCBC, a staunch advocate of inclusive finance, expressed its excitement in welcoming these rural banks into the expanding digital payments ecosystem.

Through Higala’s Inclusive Instant Payment System, banks within the SynerFi network will now have access to a suite of digital solutions, including white-label mobile banking applications with digital onboarding, CASA (Current Account, Savings Account) and payment services, and teller web applications. These tools allow rural banks to deliver comprehensive digital services without the need for significant investment in technology or compliance infrastructure.

Ronaldo Recto, President of Rural Bank of San Antonio, Inc., highlighted the transformative impact of this partnership on smaller banks like his. He noted that having access to world-class digital banking services without the burden of building costly in-house technology teams enables rural banks to focus on serving their communities. Recto said the partnership allows them to offer top-tier services while expanding their digital reach efficiently.

Further supporting this effort, Higala has announced the extension of its seed funding round to US$4 million. The expanded funding, backed by Talino Venture Studios, Chemonics International, Kadan Capital, Tenco Capital, and 1982 Ventures, will help SynerFi scale its operations and onboard more financial institutions across the country.

Damarillo said the additional funds will accelerate Higala’s ability to empower more banks through SynerFi, allowing them to expand their services and better serve their customers in the digital economy.

Jamey Butcher, President and CEO of Chemonics International, said that investor interest in Higala has grown significantly, prompting the increase in the seed funding round from the initial US$2.8 million to US$4 million. He stressed that through SynerFi, rural bank customers in the Philippines will now have access to mobile banking services for the first time -- a crucial milestone in advancing financial inclusion in the country.

Butcher noted that Chemonics has been supporting financial inclusion in the Philippines for nearly 40 years. Drawing on the organization’s experience in more than 160 countries, he remarked on how inclusive digital tools can profoundly transform lives and communities. He added that SynerFi’s achievements contribute not only to progress in the Philippines but also to a broader global movement towards empowering underserved populations through technology.