“The Philippines should be a cashless society,” Alibaba founder Jack Ma said on Wednesday in a dialogue with students at De La Salle University – Manila.
According to Ma, such setting would make eradication of corruption possible.
But in an industry where finance is an important aspect, how do we go “cashless”?
Here is where “fintech”, or financial technology, which the business magnate was referring to, comes in. As defined by Forbes, it pertains to “technologies used and applied in the financial services sector”.
In a nutshell, fintech is the digital manifestation for your financial affairs.
You’ve probably come across, or even have used, fintech in this time and age — think of banking transactions and payments done online, all effortlessly done without “cash”.
If managing your personal finances has become an easy task, imagine what this growing field of fintech can do for your business.
Ryne Landers of Business.com summarized the benefits of fintech in two words: “accessibility” and “speed”, comparing it to how enterprises back then would have to spend hefty amounts for complex business solutions. Now, with just a few taps, your accounts are in check, all in one place.
He also added that the same accessibility is made present in exchanges between you and your market.
Fintech also provides new opportunities for anyone hoping to establish a startup. According to Forbes, crowdfunding, which is a form of fintech, enables small businesses to raise funds for capital through the Internet, which makes it tad less complicated task.
Moreover, fintech has been paving the way for the growing number of players in its industry. We, in the country, do have a number rising financial technology ventures such as PayMaya, and Coins.ph, to name a few.
Ma, who also founded top fintech platform Alipay, saw the potential of the Philippines in incubating a strong fintech ecosystem because “mobile phone coverage is everywhere” in the country, despite the slow network connection which he viewed as an opportunity to motivate improvement.
“If you can solve a complaint, you have a chance,” said the business magnate
Jack Ma visited the university to receive his honorary Doctor of Science in Technopreneurship degree, and to engage with the academic community as part of his 1-day business trip in Manila on October 25.