A subsidiary of Globe Telecom Inc. is pushing for financial technology to address the needs of unbanked Filipinos.
“There is really a dire need for financial inclusion in the country since many Filipinos still do not have bank accounts as well as access to formal lending and credit. But due to fintech innovations, even those in remote areas can already take advantage of a wide range of financial services available in the market today,” Albert Tinio, president of GCash, the micro-payment service company of Mynt, said.
He said about 70 percent of Filipinos do not have bank accounts or any formal means to save money, while 90 percent of Filipinos do not have a credit score, making it difficult for them to secure a loan.
It also forces some individuals to turn to informal lenders which charge interest rates of as high as 20 percent.
Moreover, 40 percent of cities and municipalities do not have physical banks, thus, residents have to spend a lot of time, effort, and money to get to the nearest bank.