A Filipino student among the participants, talks about PHL’s financial situation
Written by Miccel Mendoza
Korea University, Computer Science and Engineering
Yeouido, Seoul – 30 international students from more than 20 countries gathered at Kookmin Bank’s new building to participate in the Asia K-Banker School, a workshop focused on digital finance and its transformative potential.
The two-day program, held last November 15-16, featured a combination of team-building activities, expert lectures, in-depth discussions, essay writing, and networking opportunities. The selection process was rigorous, involving an initial written examination followed by an interview to ensure that the most suitable candidates were chosen to represent their countries.
Among the participants, a student from the Philippines was chosen to illustrate the financial situation of the Philippines and its progress in digital finance.
The workshop began with a basic lecture on the Korean situation and the global financial situation, equipping the participants with the necessary context for the discussions that followed. A follow-up session considered social value and financial sustainability, exploring how financial systems can drive long-term social benefits.
The Financial Development Index represents a country’s relative ranking in the depth, accessibility, and efficiency of its financial institutions and markets. In the case of the Philippines, which is considered a developing country and often considered lagging behind developed economies in terms of economic development, the index reveals significant trends. According to the International Monetary Fund (IMF), the Financial Development Index of the Philippines increased significantly from 0.29 in 1991 to 0.41 in 1997. It then dropped to 0.3 in 2002 before showing a steady increase, reaching 0.38 again in 2021. The Philippines has always been above the global and regional average, its scores in recent years suggest room for improvement compared to neighboring countries.
The workshop included an engaging lecture on the development of digital technology and finance. In this talk, the participants got information about the latest fintech technologies. Fintech is driven by four main technologies: AI, blockchain, cloud computing, and big data. The world is turning to digital finance, and its importance cannot be understated.
A few years ago, living without cash in the Philippines was almost impossible due to the heavy reliance on cash. However, in recent years, cashless transactions have gradually increased, especially among the younger generation. Online banking and mobile banking platforms such as BDO Online Banking and BPI Mobile App have greatly improved access to financial services by providing 24/7 access, transaction tracking, and a wide range of financial services.
In addition, a real-time payment system known as Unified Payments Interface (UPI) is being considered in the Philippines. UPI-enabled platforms now allow instant money transfers between various banks and financial institutions. Digital wallets like GCash and Maya, which provide similar functionality to UPI, have become leading platforms in the country. These platforms offer a wide range of financial services, including P2P payments, merchant transactions, QR code-based payments, loans, investments, and cryptocurrency services. They go beyond simple payment platforms, serving as one-stop solutions for users looking for a simple, cashless way to manage their finances. The ability to offer various services within a single application appears to be very attractive to users.
In addition, neobanks (only digital banks) introduce new financial products such as fast boarding, free accounts, high-yield savings accounts, and instant loans, offering a simple, user-oriented experience. Their fully digital functionality allows users to open accounts and access services within minutes. In the Philippines, Tonic Bank has gained great popularity, especially among young users who value convenience and affordability.
The Philippines has made significant progress but still has a long way to go in the digital financial sector. Digital payment options like GCash and Maya should be more accessible to everyone. Internet connectivity and security issues must be addressed. Most importantly, support for Filipino citizens who cannot adapt to the transition to the digital world should be made available. If concerted efforts are made, we can see the Philippines join the developed world in leading digital finance.
The event was sponsored by Kookmin Bank, providing support and additional scholarships to outstanding participants. This program is in line with the Kookmin group’s mission to deliver services that bring happiness and well-being to their customers and the community.
This landmark event demonstrates Korea’s commitment to developing global leaders around the world and eagerness to promote a collaborative approach to shaping the future of digital finance.
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