The financial technology (fintech) industry needs to bolster and utilize the Philippine Skills Framework (PSF) to boost the availability of its talent, as its ecosystem develops to ensure its contribution to the country’s development goals, the Philippine
Institute for Development Studies (PIDS) said.

In a research paper, the PIDS said the PSF involves developing sector-specific skills frameworks that will guide the country’s workers in enhancing their skills for particular job roles.

“Therefore, the fintech industry may benefit from this framework and may be included in the priority sector for the PSF. This may help the talents and enterprises thrive more in this industry, in and out of the Philippines,” it said.

The paper said the government should also revisit its policies concerning higher education institutions and update the curriculum of related disciplines to prepare the graduates better and make them more competent, particularly those considering careers in fintech.

“As the Philippines continues to grow and develop competitive and innovative enterprises, the need to reskill and upgrade the skills of human capital and workforce becomes more crucial,” it added.

Aside from utilizing the PSF, the PIDS also underscored the need to address the weaknesses of the fintech sector through the Philippine Development Plan (PDP) 2023-2028.

It particularly cited the unequal access to fintech among Filipinos caused mainly by hesitancy and lack of trust that could be tackled through education, information dissemination, and improvements in access to reliable information communications
technology (ICT) services and quality infrastructure.

“Likewise, given the potential of fintech to boost financial inclusion in the country, the new administration must empower Filipinos in all socioeconomic strata by promoting fintech and providing an enabling environment for the sector to thrive,” the paper said.

The PIDS said the government must also include provisions in the PDP to promote investments in fintech startups, as it provides a fair playing field to allow new entrants to participate and penetrate the market.

“The government must develop policies providing incentives to support the growth of startups encountering a lack of funding and talent shortage. There have been several projects and initiatives to support startups in place,” it added.

The paper said the Philippines has a strong fintech industry, as indicated by a growing number of fintechs particularly in payments, lending, and banking technology verticals, and increasing capitalization.

However, the ecosystem must be strengthened for the sector to flourish, it said.