What drives or impedes financial inclusion? With over 109 million Filipinos,13 the Philippines is the thirteenth largest country in the world by population size. A large, growing market attracts investments and creates more jobs. Millennials make up one-third of the country’s total population. The country’s median age, 25.7 years old, reflects a youthful profile and an abundance of productive talent. A demographic dividend, marked by accelerated economic growth resulting from the productivity of an expanding work force, can lead to steadily rising savings and investment rates.14 The financial landscape is rapidly evolving, especially with the digitalization of financial services which brings more opportunities to the unserved and underserved areas. The rise of digital banks, open finance, and other financial technology (fintech) innovations are revolutionizing the design, delivery, and consumption of financial products and services. BigTech (the biggest technology companies) and TechFin (financial service provided by large technological companies) are creating super platforms that have the potential to transform the digital finance ecosystem. The adoption of DFS has increased considerably, largely driven by the COVID-19 pandemic during which individuals and businesses opted for more online transactions. 13 14
PSA, 2021 The Philippines is expected to benefit from the demographic dividend between the years 2025-2070 (NEDA, 2018)
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