Digital banking and stronger national infrastructure can help expand access to financing for micro, small and medium enterprises (MSMEs), according to Angelo Madrid, president of Maya Bank, Maya Bank, during the Money20/20 Philippines Summit.
Madrid shared the view in a panel discussion titled “Open Banking and Embedded Finance Empowering SMEs,” which explored how financial services can be delivered more efficiently when integrated into platforms businesses already use. The approach aims to reduce delays, shorten approval timelines, and improve access to capital for small enterprises.
“MSMEs are the backbone of the Philippine economy, but many still face challenges when it comes to accessing timely financing,” Madrid said. “Digital banking plays an important role, but it works best when supported by the right national infrastructure, simpler processes, streamlined requirements, and digitized systems that make it easier for businesses to operate and grow.”
MSMEs make up nearly 99.6% of businesses in the Philippines, employ about two-thirds of the workforce, and contribute about 40% of gross domestic product (GDP). Despite this, access to formal financing remains uneven. Many small businesses face challenges such as limited collateral, fragmented financial records, and lengthy application processes that may not match how MSMEs operate.
Madrid stressed the need to continue improving digital infrastructure and policies that make it easier for MSMEs to operate. He cited simpler business registration, standardized documentation, and wider use of digital records across government agencies and financial institutions as examples.
He also pointed to know-your-business (KYB) processes as a way for financial institutions to better verify and understand MSMEs. Madrid said collaboration among regulators and industry players, including the Bangko Sentral ng Pilipinas (BSP), the Department of Trade and Industry (DTI), and the Securities and Exchange Commission (SEC), remains important to improving business conditions and expanding credit access.
Panel discussions also highlighted embedded finance, where payments, banking, and credit are built directly into business platforms. This setup allows MSMEs to access financial tools within their daily operations, helping them respond faster to needs such as inventory restocking or seasonal demand.
Madrid said Maya supports this approach through its integrated ecosystem. Using the Maya Business app, MSMEs can accept digital payments, manage funds, and access banking services in one platform. AI-powered credit assessment uses transaction data and cash flow activity instead of relying only on collateral, helping businesses access working capital faster.
“Improving access to finance isn’t just about new products,” Madrid said. “It’s about making the overall experience simpler and more intuitive, from onboarding and verification to disbursement and daily use.”