Progress in national infrastructure and enabling policies, supported by digital banking, can help accelerate access to financing for micro, small and medium enterprises (MSMEs), Maya Bank President Angelo Madrid said at the Money20/20 Philippines Summit.
Madrid shared these views during a panel discussion on “Open Banking and Embedded Finance Empowering SMEs,” which examined how financial services can be delivered more efficiently when they are integrated directly into the platforms businesses already use—helping reduce friction, 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 account for nearly 99.6% of all businesses in the Philippines, employ about two-thirds of the workforce and contribute roughly 40% of GDP. Yet access to formal financing remains uneven—often constrained by limited collateral, fragmented records and lengthy application processes that do not always reflect how small businesses operate.
Madrid emphasized the importance of continued progress in national digital infrastructure and in enabling policies that reduce friction for MSMEs—such as simpler business registration processes, more standardized documentation and greater use of digital records across government and financial institutions.
He also highlighted the role of know-your-business (KYB) processes in helping financial institutions verify and better understand MSMEs. Madrid said sustained collaboration among regulators, industry players and government agencies—including the Bangko Sentral ng Pilipinas (BSP), the Department of Trade and Industry (DTI) and the Securities and Exchange Commission (SEC)—is key to improving the ease of doing business and expanding credit access for MSMEs.
Panel discussions highlighted how embedded finance—where payments, banking and credit are integrated directly into business platforms—can help close financing gaps for MSMEs by delivering financial services within the flow of everyday operations. Instead of navigating separate applications or physical branches, MSMEs can access payments, accounts and financing tools in one place, enabling faster time-to-cash and reducing friction at moments of need, such as inventory restocking or seasonal demand.
Drawing on Maya’s experience serving MSMEs, Madrid highlighted how this model works in practice through Maya’s integrated ecosystem. Through the Maya Business app, MSMEs can accept digital payments, manage funds and access banking services in a single interface, while AI-powered credit assessment is informed by actual transaction data and cash-flow activity rather than fixed collateral alone. This allows working capital to be offered more quickly and in amounts aligned with real business performance—making credit more accessible and practical for small enterprises.
Madrid noted that progress toward open finance, including secure data-sharing frameworks, can further enhance how financial institutions assess MSME needs over time. However, he emphasized that near-term impact comes from strengthening foundational systems and collaboration across government and industry players to ensure digital tools translate into real improvements for businesses on the ground.
“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.”
The Money20/20 Philippines Summit brings together leaders from across banking, payments, fintech, and policy to discuss the future of financial services and how technology can support inclusive and sustainable economic growth.
