Rural banks to develop apps, link to instant payment system
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Rural banks to develop apps, link to instant payment system
MANILA -- Some rural banks in the Philippines will soon have their own mobile banking app and offer digital services through SynerFi, an open payments platform by RCBC, Higala and other venture capital investors.
MANILA -- Some rural banks in the Philippines will soon have their own mobile banking app and offer digital services through SynerFi, an open payments platform by RCBC, Higala and other venture capital investors.
An initial eight rural banks will be onboarded the SynerFi platform.
An initial eight rural banks will be onboarded the SynerFi platform.
These include the Rural Bank of San Antonio, Inc., Rural Bank of Lipa City, Inc., Progressive Rural Bank, Inc., Banco Abucay, Inc., Rural Bank of Hermosa, Inc. Money Mall Rural Bank, Inc., First Philippine Partners Bank, Inc., and Lagawe Highlands Rural Bank, Inc.
These include the Rural Bank of San Antonio, Inc., Rural Bank of Lipa City, Inc., Progressive Rural Bank, Inc., Banco Abucay, Inc., Rural Bank of Hermosa, Inc. Money Mall Rural Bank, Inc., First Philippine Partners Bank, Inc., and Lagawe Highlands Rural Bank, Inc.
SynerFi will create each bank’s own mobile app and depositors will now be able to send and receive money from commercial banks and e-wallet platforms via InstaPay, receive remittances abroad, pay via QRPH in shops, pay bills, and potentially also apply for loans and other financial services.
SynerFi will create each bank’s own mobile app and depositors will now be able to send and receive money from commercial banks and e-wallet platforms via InstaPay, receive remittances abroad, pay via QRPH in shops, pay bills, and potentially also apply for loans and other financial services.
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“We’re really providing rural banks with the complete banking system. They can now take digital deposits. They can now electronically onboard clients even if you don’t go to the branch,” said Winston Damarillo, President and Chief Executive Officer of Higala.
“We’re really providing rural banks with the complete banking system. They can now take digital deposits. They can now electronically onboard clients even if you don’t go to the branch,” said Winston Damarillo, President and Chief Executive Officer of Higala.
Officials said the new service will not only offer convenience to rural bank users, but it will have an impact on the overall economy because of the significant role rural banks play in the country’s development.
Officials said the new service will not only offer convenience to rural bank users, but it will have an impact on the overall economy because of the significant role rural banks play in the country’s development.
“Rural banks and micro finance institutions are not at the periphery of our financial system. They are the cause of countryside development, the first mile of inclusion, and often the only bridge between marginalized communities and meaningful economic participation,” said Lito Villanueva, Executive Vice President and Chief Innovation and Inclusion Officer of RCBC.
“Rural banks and micro finance institutions are not at the periphery of our financial system. They are the cause of countryside development, the first mile of inclusion, and often the only bridge between marginalized communities and meaningful economic participation,” said Lito Villanueva, Executive Vice President and Chief Innovation and Inclusion Officer of RCBC.
Damarillo added, “It starts to formalize economic development. Vendors that accept InstaPay will now have credit scores and eventually have credit access… When you digitize payments, when you digitize the ability to disburse, when you digitize the ability to collect, it makes credit lending cheaper.”
Damarillo added, “It starts to formalize economic development. Vendors that accept InstaPay will now have credit scores and eventually have credit access… When you digitize payments, when you digitize the ability to disburse, when you digitize the ability to collect, it makes credit lending cheaper.”
Some of the rural banks said this program is important for them especially since they do not have the expertise or the budget to venture into digitalization. This project has zero capital intensity.
Some of the rural banks said this program is important for them especially since they do not have the expertise or the budget to venture into digitalization. This project has zero capital intensity.
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Higala has also announced that its seed funding has been extended from $2.8 million to $4 million, helping expand SynerFi’s presence in the Philippine rural bank sector.
Higala has also announced that its seed funding has been extended from $2.8 million to $4 million, helping expand SynerFi’s presence in the Philippine rural bank sector.
“We’ve just closed our seed round and have investors now from Singapore, Japan, America, and here in the Philippines… It really shows that there’s a widespread belief that the Philippines is not only one of the fastest growing economies in Asia, but also a place of innovation,” said Jamey Butcher, President and CEO of Chemonics.
“We’ve just closed our seed round and have investors now from Singapore, Japan, America, and here in the Philippines… It really shows that there’s a widespread belief that the Philippines is not only one of the fastest growing economies in Asia, but also a place of innovation,” said Jamey Butcher, President and CEO of Chemonics.
Officals now target to partner with 20 percent of rural banks in the country or more than 60 banks in the first year of operation. For now, they are awaiting the final nod from the Bangko Sentral ng Pilipinas which is expected in the coming months.
Officals now target to partner with 20 percent of rural banks in the country or more than 60 banks in the first year of operation. For now, they are awaiting the final nod from the Bangko Sentral ng Pilipinas which is expected in the coming months.
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