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Talino Venture Studios, renowned for its sustainable innovation initiatives, and Chemonics International, a leading sustainable development firm, have unveiled Higala, a groundbreaking startup Inclusive Instant Payment System (IIPS) in the Philippines. This joint endeavor aims to bridge the gap in financial inclusion by connecting rural banks, microfinance institutions, and other underserved entities to the digital payment ecosystem.
Addressing Financial Exclusion:
Despite the presence of 400 rural banks in the Philippines, only a mere 18 are part of the InstaPay network, leaving many Filipinos devoid of modern banking conveniences. Higala emerges as a financial superhighway, slashing high switching and on-ramp costs, and facilitating seamless connectivity among financial institutions.
Empowering Financial Institutions:
“Higala will modernize our country’s digital financial infrastructures and enable the participation of financial institutions through our network. Our goal is to make banking more inclusive, especially to the underserved segments of the population,” remarked Vice Catudio, President, and CEO of Higala.
Driving Financial Inclusion:
Higala endeavors to democratize access to real-time payments by lowering transaction costs, enabling financial institutions to competitively price their instant payments. Moreover, it seeks to empower the underbanked and accelerate merchants’ adoption of digital payments.
Technological Advancements:
Higala’s open payment platform integrates cutting-edge technologies, including regulatory technologies like e-KYC and AML-TF monitoring, AI-based risk detection, and a payment hub for instant fund transfers across participating banks. Additionally, it leverages the Mojaloop Foundation’s open-source software to enhance affordability and accessibility in financial transactions.
Commitment to Sustainable Development:
Winston Damarillo, CEO of Talino Venture Studios, emphasized their commitment to sustainable development, particularly in expanding financial inclusion to the unbanked. Chemonics President and CEO Jamey Butcher echoed this sentiment, highlighting Higala’s role in fostering affordable, real-time transactions accessible to all Filipino communities.
Pioneering Deployment of Mojaloop in Asia:
Higala marks the first deployment of Mojaloop open-source software in Asia, underscoring its commitment to breaking down barriers and empowering communities through financial inclusion.
Support from Industry Leaders:
The initiative has garnered support from the Bangko Sentral ng Pilipinas (BSP) and industry leaders, including the Rizal Commercial Banking Corporation and FinTech Alliance.Ph, reflecting a collective effort towards inclusivity and innovation in transaction management.
Conclusion:
Higala represents a pivotal step towards realizing comprehensive financial inclusion in the Philippines, driven by collaboration, innovation, and a shared vision of empowering every Filipino with access to modern financial services.
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