Blockchain Technology could aid Philippine MSMEs in 2022

UnionBank’s fintech arm (UBX) has grown by 44 times last year as there was an increasing acceptance of new technologies in banking. With this growth, UBX launched i2i as a banking-as-a-service platform to serve rural communities.

Although the Philippines is a rapidly-developing country 70% of its citizens have limited access to banking services, as ⅓ of the population lives on less than $2 per day.

“2021 was a year of immense growth for i2i with the growing demand for financial services in the country. Our goal is to grow by 300% this year,” said Anne Yosuico, UBX Managing Director for Banking Services.

She then adds that demand for mobile ATM services is behind the growth surge.

The i2i platform has partnered with 130 rural banks and is supported by the BSP (the country’s central bank). The platform allows merchants of MSMEs to offer financial services like ATM withdrawals, fund transfers, and deposits.

Last January, the World Economic Forum (WEF) stated that blockchain could aid the growth of MSMEs. According to the forum, MSMEs account for nearly 90% of all businesses, employing 50% of the workforce and contributing roughly 40% of the GDP in emerging economies.

Additionally, the World Bank’s Enterprise Survey showed that MSMEs are often hindered by a lack of access to financial services.

With regards to this, blockchain technology could help bridge the financial gap by allowing small businesses to build and grow by embracing the technology. This is because blockchains can connect smaller businesses to global markets, helping them save costs and simplify payments.

With digital wallets, small businesses can begin accepting cryptocurrencies as payment, giving them a wider customer base as more people have started investing in decentralized currencies.

According to Yosuico, blockchain technology can open a “new world” of opportunities to merchants, as it allows for processing loan applications digitally, selling insurance, and performing know-your-customer (KYC) checks.

“As a strong ally of the government and the industry, we are committed to building and developing more financial solutions to bring banking services closer to Filipinos,” Yosuico said.

Source: BeInCrypto