MSMEs champion digitalization to empower poor
Remolona urges PH firms to embrace technological advances in financial sector
Microfinance institutions (MFI) and microentrepreneurs that have adopted the latest technologies to streamline their services and grow their businesses were honored at the 2nd Digital Financial Inclusion Awards (DFIA).
A total of 25 outstanding achievers in the use of financial technology (fintech)—20 microentrepreneurs and five MFIs—were recognized in the annual search.
The DFIA is a financial inclusion program funded by Citi Foundation and jointly undertaken with the Microfinance Council of the Philippines, Inc. (MCPI) and the Bangko Sentral ng Pilipinas (BSP).
In his welcome remarks, Paul Favila, Citi Philippines chief executive, stressed how digitalization was transforming the finance industry and those in the sector needed to adapt.
“Digital transformation has become a priority in finance and in the new economy, and should also be a priority for the microfinance community as they play an important role in promoting financial inclusion among MSMEs (micro, small and medium enterprises),” Favila said.
BSP Governor Eli Remolona Jr. underscored the “transformative powers” of digital technology as he encouraged MSMEs to embrace the scientific and technological advances in the financial sector.
The 20 microentrepreneur winners each received a cash prize of P100,000 and a laptop. They were Shirley Aguinaldo, Rhodora Angeles, Joseph Arriesgado, Normanita Banagudos, Anabelle Banquero, Salome Barile, Rhea Fhene Barte, Ryme Janelle Besonaya, Cecilia Jarilla, Nurfaida Jupakkal, Joy Maniaol, Marissa Palcat, Arlene Panit, Arlene Passion, Connie Rivera, Catherine Rugnao, Floricel Sanorjo, Fely Suarez, Estrelita Tuan and Marites Zulueta.
Their businesses ranged from food production and processing, poultry and organic products to handicrafts, weaving and printing.
Cash incentives
Each of the five winning MFIs received a cash incentive of P100,000 to help them continue improving their digital financial service programs.
The MFI winners were CARD Mutually Reinforcing Institutions (CARD MRI), Kabalikat para sa Maunlad na Buhay Inc. (KMBI), Kabuhayan sa Ganap na Kasarinlan Credit and Savings Cooperative (K-Coop), RAFI Micro-Finance Inc. and Rural Bank of Guinobatan Inc.
The DFIA evolved from the Citi Microentrepreneurship Awards that aimed to raise awareness about the importance of microentrepreneurship and microfinance to achieve financial inclusion and economic empowerment of low-income people.
Remolona expressed hope that these winners would serve as role models for their peers.
He gave assurance that the BSP “will continue to foster an enabling regulatory environment so that more MSMEs benefit from digital financial innovation.”
Since 2000, the BSP has played a key role in increasing the access of MSMEs to financial services by mainstreaming microfinance.
It set in 2007 the goal of financial inclusion to bring the system closer to all Filipinos.
As mandated by Republic Act No. 11211 of 2019, which amended the BSP charter, the country’s top financial regulator is establishing an enabling regulatory environment that allows a variety of players to meet the diverse needs of the unserved and vulnerable sectors of the economy.
Favila said, “Through the DFIA program and our collaborative efforts, we have contributed to uplifting microfinance and promoting enterprise development across the country. We hope that the DFIA program helps in raising awareness and encouraging policymakers to recognize and support microentrepreneurs as key drivers of their local economies.”
He said DFIA was developed to encourage and support microfinance institutions and microentrepreneurs to harness digitalization in growing and enhancing their customer base, sales volume and their profitability.
“Despite the economic challenges that have impacted individuals and businesses, these economic trailblazers have prevailed in the face of adversity,” he pointed out.