Digital banking, backed by national infrastructure and supportive policies, can accelerate financing for micro, small, and medium enterprises (MSMEs), Maya Bank president Angelo Madrid said at the Money20/20 Philippines Summit.
Speaking on “Open Banking and Embedded Finance Empowering SMEs,” Madrid said integrating financial services into business platforms can reduce friction, shorten approval timelines, and expand access to capital.
“MSMEs are the backbone of the Philippine economy, but many still face challenges accessing timely financing,” he said. “Digital banking works best with simpler processes, streamlined requirements, and digitized systems that make growth easier.”
MSMEs account for nearly 99.6 percent of businesses, employ two-thirds of the workforce, and contribute roughly 40 percent of GDP. Yet financing remains limited due to collateral constraints, fragmented records, and slow applications.
Madrid highlighted policies like simpler registration, standardized documentation, and broader digital records, plus know-your-business processes, as key to helping financial institutions better assess MSMEs. Collaboration among regulators, industry players, and agencies like BSP, DTI, and SEC is critical.
Embedded finance, which integrates payments, banking, and credit into business platforms, allows MSMEs to access tools in one place, speeding time-to-cash for operations like inventory restocking. Through the Maya Business app, MSMEs can manage funds and access AI-powered credit based on cash flow, not just collateral.
“Improving access to finance isn’t just about new products,” Madrid said. “It’s about making the experience simpler and more intuitive—from onboarding to daily use.”
The Money20/20 Philippines Summit brings together leaders across banking, fintech, and policy to discuss inclusive and sustainable financial growth.
