DTI to link up MSMEs with fintech companies

CEBU, Philippines — The Department of Trade and Industry (DTI-7) is helping micro entrepreneurs in the region to employ fintech (financial technology) in their respective businesses.

DTI-7 assistant regional director Maria Elena “Nanette” Arbon announced that the agency is now initiating partnerships with financial institutions, fintech companies to link micro entrepreneurs to these providers.

Initially, DTI-7 is talking with UnionBank to come up with good programs or campaigns to make fintech part of the small businesses system.

Fintech is the technology and innovation that aims to compete with traditional financial methods in the delivery of financial services. It is an emerging industry that uses technology to improve activities in finance.

To date, Arbon said most small businesses are not yet comfortable in entering into full digital payment system, so with majority of Filipino consumers.

However, despite the cultural barriers sticking into cash-based payments amid the fast evolving digital economy, Arbon said there is a need for micro businesses to be well oriented in the way of doing business, in order to stay in the growth trail.

Most Filipinos still have ‘trust issue,’ in using technology for full financial transaction. Much more the small businesses that are yet to take risks.

“People still want to visit the office, the traditional way,” Arbon said.

But, what is good about the service providers now is they are taking notes of the Philippines’ cultural differences, they are trying to customize their products and services to fit the distinct “Pinoy way.”

Aside from collaborating with FinTech companies, DTI-7 is also working with market places groups like Lazada, Shoppee, among others to link MSMEs to these platforms.