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World Bank approves $600M loan for Philippine tech shift

🇵🇭 Internet Islands - The Philippines has one of the biggest digital user base in Asia. The country has an internet penetration rate of 73.1% in 2023 and 84.4 million social media users.

💤 Sleeping Giant - Despite these numbers, cash still dominates over the counter, government service and fee payments (~90% of transactions). World Bank also reports that 1/3 of adults don’t have a transaction account with a financial body

💵 What’s in store - The country’s first Digital Transformation Development Policy Loan (DIPL) was set up to digitize operations and infrastructure, service delivery and encourage digital payments. The loan is said to:

  • Support the growing ecommerce industry

  • Improve competitiveness

  • Strengthen digital skills

  • Raise efficiency

  • Lower operating costs

These reforms will help the authorities expand the reach of digital financial services to underserved and unbanked segments of the population, including women, and facilitate the transition from a predominantly cash-based economy to a digital one. To boost business growth in digital services, this development policy loan will also support reforms that promote the uptake of e-commerce by consumers and businesses and promote competition in digital services markets,

According World Bank (Source: GMA Network, 2023)

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