MANILA -- Building a larger user base remains a challenge for fintech companies in the Philippines, a business professor said Wednesday.

"The challenges really, are trying to build a large base, a large base of users," said Asian Institute of Management (AIM) Professor Jose Camus. "See, when there are so many players, they’re reaching a very small section of the market."

Camus noted that more and more players are entering the fintech lending space.

"In the lending space they're looking at building, reaching those borrowers which the banks are not currently reaching at the moment. And this will be a major growth area for them."

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He said fintech is becoming a very vital component in the development of the financial system today, noting that it promotes financial inclusion.

"Soon what will happen is these players in the market will continue to deliver financial services to these underserved markets which the banks have not been serving properly," he said.

--ANC, 6 September 2023

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