Manila: Eight rural banks are set to pioneer SynerFi, an open payments platform operated by technology firm higala.ph, in the coming weeks, with an additional 12 banks expected to join by the end of the year. This initiative supports the government's goal of increasing digital financial inclusion.
According to Philippines News Agency, the eight banks already onboard with the SynerFi system include Rural Bank of San Antonio, Inc., Rural Bank of Lipa City (Batangas), Inc., Progressive Rural Bank, Inc., Banco Abucay, Inc., Rural Bank of Hermosa (Bataan), Inc., Money Mall Rural Bank, Inc., First Philippine Partners Bank, Inc. (A Rural Bank), and Lagawe Highlands Rural Bank, Inc.
Winston Damarillo, president and CEO of Higala.ph, emphasized the significance of rural banks in the economy. He noted that enabling these banks to utilize an open payments platform would enhance their capacity to serve more people, particularly in rural areas, aligning with the government's financial inclusion objectives. Damarillo highlighted that this effort marks the start of empowering the underserved banking sector by offering digital banking services that were previously available only to mainstream banks.
This development is being executed with the assistance of Rizal Commercial Banking Corporation (RCBC), identified as a digital challenger bank. Lito Villanueva, RCBC's executive vice president and chief innovation and inclusion officer, highlighted that while the Bangko Sentral ng Pilipinas (BSP) has been advocating for bank digitalization, only 5 percent of the 358 rural banks currently participate in InstaPay, a component of the central bank's National Retail Payment System (NRPS).
InstaPay is a real-time electronic fund transfer service facilitating transactions up to PHP50,000 per transfer. Villanueva, citing statements from rural bank officials, mentioned that each rural bank branch services approximately 2,000 to 10,000 clients, who will benefit from the open payments system. He stressed the importance of leveling the playing field and ensuring that every Filipino, particularly those in remote areas, can reap the benefits of digital banking.
