The Evolution of Digital Banking in the Philippines

September 3, 2021
by
NextPay Editorial Team

The troubles of legacy banking

You’ve probably experienced some challenging moments in legacy banking processes. You might still be having nightmares about losing your passbooks or when you travel to faraway cities just to encash money from one specific branch.

No matter how you put it– traditional banking was hard! Now, we have an array of options with fintech-powered services finding this way to business owners.

Way before the pandemic disrupted the global economy, more than 70% of local businesses have been considering digitalization to streamline their processes. When the COVID-19 hit, people were forced to stay inside their homes while countless businesses were slowed down or even closed. And just like that, fintech rose to prominence as it addressed the need for contactless payments and money transfers.

However, many are still in the dark when it comes to digital banking in the Philippines. In fact, only 4.5% of Filipinos currently have a mobile banking account according to Hootsuite’s Digital 2021 report. Truth be told, digital banking in the Philippines is still in its infancy, and decoding its evolution might allow more Filipinos to appreciate its benefits.

the history of digital banks in the philippines

A brief history of digital banking in the Philippines

First, let’s take into account the relationship between fintech and smartphones. Back in 2017, the country was the global leader when it comes to ‘time spent on social media’. However, the same cannot be said in terms of using mobile phones for digital banking. Unfortunately back then, the Philippines was the only Asian country with the majority of its consumers preferring over-the-counter payments over digital means.

As consumer trust towards fintech eventually evolved as the new decade unfolded, so did local digital banks with their services. But for Pinoys back then, there were still a few things missing.

In terms of digital banking solutions, businesses have started looking for more user-friendly features that can make fintech apps and platforms less intimidating.

NextPay is the best digital banks in the philippines

The NextPay factor

Fast forward to 2020. Seeing many Filipino businesses struggle with digital transformation, we at NextPay began creating an alternative solution to corporate banking. After taking note of how the country is lagging far behind its Asian counterparts in terms of fintech, we started focusing on MSMEs and their needs. Soon, we were helping companies collect payments and handle other financial matters remotely via easy-to-navigate online processes.

Before the pandemic, there were only an estimated 51.2 million unbanked Filipino adults. That number has jumped to an added 4 million digital accounts today owing to everyone’s need for contactless money transfers. By focusing on everyone’s needs, we were able to set up a versatile yet easy-to-use platform at the onset of an unprecedented surge.  

Moving forward, our platform continues to break the barriers of business banking for small businesses in the Philippines. Whether you’re a solopreneur, startup, or into big business, NextPay is your best alternative to corporate banking.

By the way, did we mention that NextPay operates on a pay-per-use model? Learn more here.

As fintech continues to grow with more Filipinos opening digital bank accounts, we have already processed over USD 500Mn  in transactions for over 200 businesses in just less than two years!

digital banks in the philippines for your business

Make NextPay your business banking partner today

Building trust among Filipino businesses is a continuing process for us— that’s why we remain focused on your needs. With NextPay, you can oversee your cash flows and manage money in one centralized platform. You can also send batch payments securely, track invoices, generate financial reports and pay your suppliers online without worry. NextPay provides everything that every Pinoy business, freelancer, and entrepreneur needs to enjoy the benefits of digital banking!

Learn more about how NextPay can help you and your business grow!

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