Digital Banking Revolution in the Philippines and its Drivers, Impacts, and Challenges: A Multifaceted Analysis

Abstract

Aim: This study explored the dynamic landscape of digital banking in the Philippines, with the goal of uncovering the drivers, impacts, and potential challenges associated with its expansion. It sought to provide a comprehensive understanding of this transformative phenomenon within the context of an emerging economy.

Methodology: A qualitative research approach was meticulously chosen, featuring in-depth interviews with key stakeholders, while quantitative data was collected through surveys of bank customers. Thematic analysis and appropriate statistical techniques were applied to draw meaningful insights and discern trends from the gathered data.

Results: The study identifies key drivers, such as the widespread availability of internet services, the adoption of mobile phones, innovative fintech developments, supportive government policies, and strategic collaborations, which have significantly fueled the growth of digital banking. Survey data highlights the positive impact of digital banking on accessibility to financial services, financial inclusion, and access to credit facilities. However, it also uncovers potential risks, including cybersecurity threats, concerns regarding data privacy, limitations in technological infrastructure, challenges related to financial literacy, and issues regarding regulatory compliance.

Conclusion: The burgeoning digital banking landscape in the Philippines presents promising prospects for financial inclusion. Nevertheless, it necessitates a proactive approach to address cybersecurity concerns, bolster technological infrastructure, promote consumer awareness, foster innovation, and fortify regulatory frameworks. These recommendations are intended to ensure the establishment of a secure and sustainable digital banking ecosystem, all while maximizing its advantages for all strata of society and contributing significantly to economic growth.

Keywords: Digital Banking, Financial Technology, Philippines, Financial Inclusion