Improved national infrastructure and enabling policies, supported by digital banking, can help speed up access to financing for micro, small and medium enterprises (MSMEs), Maya Bank president Angelo Madrid said at the Money20/20 Philippines Summit.
Speaking at a panel on open banking and embedded finance, Madrid said financial services become more effective when they are built directly into the platforms that businesses already use. This approach reduces paperwork, shortens approval times and makes it easier for small firms to get capital.
MSMEs make up about 99.6 percent of all businesses in the Philippines, employ around two-thirds of the workforce and contribute roughly 40 percent of gross domestic product. However, many still struggle to secure formal financing due to limited collateral, incomplete records and slow application processes.
Madrid said digital banking works best when backed by simpler business registration, standardized requirements and wider use of digital records across government and financial institutions. He also stressed the importance of strong know-your-business (KYB) systems to help banks better assess MSMEs, and called for continued cooperation among regulators and agencies such as the Bangko Sentral ng Pilipinas, the Department of Trade and Industry and the Securities and Exchange Commission.
Panelists noted that embedded finance—where payments, banking and credit are integrated into business platforms—allows MSMEs to access financial services in one place, supporting faster cash flow and quicker responses to needs like inventory restocking or seasonal demand.
Madrid cited Maya’s Business app as an example, allowing MSMEs to accept digital payments, manage funds and access credit through one platform. Credit decisions are based on transaction data and cash flow rather than fixed collateral, enabling faster and more practical lending.
While open finance and secure data-sharing frameworks can further improve access over time, Madrid said immediate gains depend on strengthening basic systems and collaboration across government and industry to make financing simpler and more accessible for MSMEs.
