Higala Pioneers Inclusive Payments In PH

The Philippines' financial landscape is on the brink of a major transformation as Talino Venture Studios and Chemonics International join forces to seed-fund Higala, the country's pioneering Inclusive Instant Payment System (IIPS).

Studies show that 44% of the Philippines' bankable population—those aged 15 and older—still lacks access to formal banking services.

This strategic collaboration aims to reshape the nation's digital financial infrastructure and promote inclusive banking services for all Filipinos, particularly those in rural and underbanked communities.

Despite the existence of 400 rural banks across the Philippines, only 18 are part of InstaPay, indicating a significant interoperability issue.

This lack of connectivity has limited the reach of modern banking technologies and hindered financial inclusion.

Higala's mission is to address this gap by creating a financial superhighway that connects thrift banks, rural banks, and microfinance institutions that have been excluded from existing payment networks due to high switching costs.

Vice Catudio, President and CEO of Higala, emphasizes the importance of this initiative, saying, "Our goal is to make banking more inclusive, especially for underserved segments of the population with limited access to traditional banking services."

Higala's approach to inclusion involves lowering the cost of real-time payments, enabling financial institutions to offer instant payments at reasonable prices, and empowering merchants to accept digital transactions.

Higala's platform utilizes Mojaloop, an open-source payment framework designed to boost financial inclusion.

This technology facilitates seamless connectivity among various financial entities, providing a secure and affordable means of instant fund transfers.

Paula Hunter, Executive Director of the Mojaloop Foundation, expresses the significance of this deployment in Asia, "Together, we're not just revolutionizing payment systems; we're unlocking opportunities, fostering resilience, and building a future where financial access knows no bounds."

In addition to simplifying payments, Higala offers a suite of innovative solutions such as regulatory technologies like e-KYC (Know Your Customer) and AI-based risk detection. This comprehensive approach positions Higala as a key player in the Philippines' journey toward a more inclusive and digitally enabled economy.

Talino Venture Studios, a leader in inclusive fintech, and Chemonics International, a globally recognized sustainable development firm, are at the forefront of this initiative.

Talino CEO Winston Damarillo states, "With Talino and Chemonics providing funding for Higala, we bring together the impact of venture investing and global good to expand the benefits of financial inclusion to segments that need them most."

Higala's partnerships with key industry players like Rizal Commercial Banking Corporation, Xendit, FinTech Alliance.Ph, and the Rural Bankers Association of the Philippines signal a united effort toward achieving comprehensive financial inclusion in the Philippines.

The commitment to innovation and financial inclusion is further endorsed by the Bangko Sentral ng Pilipinas (BSP), with Deputy Governor Mamerto E. Tangonan acknowledging the need to modernize the national payment system.

"The BSP supports continued efforts to enhance the efficiency of the national payment system and help modernize the Philippines' digital payments infrastructure as part of our ongoing efforts to bring more users into the digital payments system," said Tangonan.