At the Money 20/20 Philippines Summit, Angelo Madrid (2nd from right), President of Maya Bank, highlighted the role of national infrastructure and enabling policies in supporting digital banking to expedite access to financing for micro, small and medium enterprises (MSMEs) in the Philippines.
Progress in national infrastructure, combined with enabling policies and digital banking innovation, can significantly accelerate access to financing for micro, small and medium enterprises (MSMEs), according to Maya Bank President Angelo Madrid, who spoke at the Money20/20 Philippines Summit.
Madrid shared these insights during a panel discussion titled “Open Banking and Embedded Finance Empowering SMEs,” which explored how financial services can be delivered more efficiently when they are embedded directly into the platforms businesses already use. By reducing friction, shortening approval timelines, and aligning services with day-to-day operations, embedded finance can make capital more accessible to small enterprises.
“MSMEs are the backbone of the Philippine economy, but many still struggle to secure 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 help businesses operate and grow more easily.”
MSMEs make up nearly 99.6 percent of all businesses in the Philippines, employ about two-thirds of the workforce, and contribute roughly 40 percent of gross domestic product. Despite their economic importance, access to formal financing remains uneven. Many small enterprises are constrained by limited collateral, fragmented records, and lengthy application processes that do not reflect how they actually run their businesses.
Madrid stressed the need for continued improvements in national digital infrastructure and policy frameworks that reduce friction for MSMEs. These include simpler business registration processes, more standardized documentation, and wider adoption of digital records across government agencies and financial institutions.
He also highlighted the growing importance of know-your-business, or KYB, processes in helping banks verify and better understand MSMEs.
According to Madrid, sustained collaboration among regulators, industry players, and government agencies—such as the Bangko Sentral ng Pilipinas, the Department of Trade and Industry, and the Securities and Exchange Commission—is essential to improving the ease of doing business and expanding credit access for small enterprises.
Discussions at the summit also underscored how embedded finance can help close financing gaps by integrating payments, banking, and credit directly into business platforms.
Instead of navigating separate applications or visiting physical branches, MSMEs can access financial tools in one place, enabling faster time-to-cash and reducing friction during critical moments such as inventory restocking or seasonal demand spikes.
Drawing from Maya’s experience serving MSMEs, Madrid pointed to the company’s integrated ecosystem as a practical example of this model. Through the Maya Business app, enterprises can accept digital payments, manage funds, and access banking services within a single interface.
AI-powered credit assessment is informed by actual transaction data and cash-flow activity rather than fixed collateral alone, allowing working capital to be offered more quickly and in amounts aligned with real business performance.
Madrid added that progress toward open finance, including secure data-sharing frameworks, can further improve how financial institutions assess MSME needs over time. However, he emphasized that near-term impact depends on strengthening foundational systems and deepening collaboration across government and industry to ensure digital tools translate into tangible improvements for businesses on the ground.
“Improving access to finance isn’t just about launching 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 banking, payments, fintech, and policy to discuss the future of financial services and how technology can support inclusive and sustainable economic growth in the country.