December 10, 2024 | 12:00am
In finance, we often focus on numbers: balance sheets, loan portfolios and economic indicators.
But beyond these figures lies something far more significant: financial health. Just as we safeguard our physical and mental well-being, nurturing our financial health is equally essential.
Financial health transcends the size of our bank accounts or credit scores. It’s not about being “rich” or accumulating assets.
Rather, it reflects our ability to manage money effectively to meet present needs, weather financial shocks and work toward future goals.
It is about achieving stability, resilience and ultimately, financial empowerment.
In the Philippines, financial health is taking center stage. Through groundbreaking initiatives such as the Fintech Health Survey, the country has set a regional benchmark for understanding the financial behaviors and needs of both the banked and unbanked populations. This data-driven approach helps dismantle barriers to inclusion and promotes the development of practical solutions tailored to the realities of everyday Filipinos. The Fintech Health Survey is the first industry-specific initiative of its kind in Southeast Asia. It sheds light on our customers’ specific behaviors, needs and aspirations.
It is a solid proof of how data-driven surveys can guide us in our mission to empower communities through financial inclusion.
By tracking financial health indicators directly from users, we move from assumptions to evidence. By focusing on this metric, the nation is providing access to financial tools and empowering people to live with dignity and security. The Philippines’ success was lauded by Queen Maxima of the Netherlands, the UN Secretary-General’s Special Advocate for Financial Health during her visit to the Bagong Pilipinas: The Philippines Country Pavilion at the Singapore FinTech Festival. Queen Maxima called on global fintech associations to follow the Philippines’ example in establishing financial health measurements.
The Queen’s presence was an important endorsement of the Philippines’ strides in financial inclusion and digital finance, marking a milestone in the country’s journey toward a more inclusive financial landscape.
“I count on the Philippines and this fintech alliance to inspire many other associations across the globe to take the stand. I will be using you as an example to tell what is possible. Above all, to give the message that fintech is not about technology at the end of the day but about the needs of the people,” the Dutch monarch said.
It was an honor to hear these words from the Queen herself, known globally for her advocacy for financial inclusion. As she promoted financial health and the responsible development of financial services, motivation and inspiration continued to run through our veins. We are showing the world that by adopting financial health as a strategic focus, we can create a roadmap for other markets to follow. Imagine a future where Southeast Asian nations collaborate to establish a financial health framework akin to the ASEAN Economic Community. Shared data, best practices and cooperative initiatives could amplify impact, bridging the gap between developed and developing nations.
At the festival, the Bangko Sentral ng Pilipinas (BSP), Fintech Alliance.PH and Asia Fintech Alliance engaged in a dialogue and highlighted the importance of financial health in guiding traditional and digital banks toward greater financial inclusion.
BSP director Mynard Brian Mojia of the Inclusive Finance Advocacy Office emphasized the importance of financial health service providers and tech players actively participating in this journey – not out of a desire to satisfy regulatory expectations or fulfill corporate social responsibility obligations, but because they genuinely recognize the value of prioritizing their consumers’ financial well-being. Collaboration is key. We call on more regional and global institutions to join the cause.
Governments, fintech companies and traditional financial institutions must work together to create an ecosystem where innovation thrives, education expands and financial products become accessible to all.
The rise in financial account ownership in the Philippines – from 34.5 percent in 2017 to 51.4 percent in 2021 – demonstrates the power of public-private partnerships.
Programs like digitized microfinance services and shared financial databases have turned inclusion into a tangible reality for millions. Regulators like the BSP play a vital role by setting a balanced framework that encourages innovation while protecting consumers. The BSP’s Financial Inclusion Survey highlights the need for increased financial literacy to maximize the benefits of financial services. It is our responsibility to educate the public about financial literacy and health. Private sector investments are equally crucial. For example, the $400-million investment by KKR in telecom infrastructure not only enhances digital connectivity but also creates the foundation for more accessible financial services.
At the end of the day, to improve financial health moving forward, a multi-faceted approach involving all stakeholders championing socially responsible fintech innovations is crucial. Just as good physical health helps us thrive, strong financial health enables us to live a more confident and secure life.
At its core, financial health is about empowerment – both for individuals and entire communities. A financially healthy population fuels resilient societies, thriving businesses and robust economies.
Let us continue to build bridges between aspiration and action, ensuring that financial health becomes not just a goal, but a way of life.
Lito Villanueva is the Philippines’ leading thought leader in inclusive digital finance. As EVP and Chief Innovation and Inclusion Officer at RCBC, he has led award-winning digital initiatives at scale. He is also the founding chairman of Fintech Alliance PH, overseeing 95 percent of the nation’s digital retail financial transactions. He is the first global chairman of the South Africa-based Alliance of Digital Finance Associations and a co-founder of the Asia FinTech Alliance. He has substantially impacted the fintech landscape in the Philippines through his leadership and innovative efforts. His contributions have been crucial in advancing the fintech ecosystem in the Philippines, making financial services more inclusive and efficient.
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