Hungary and the Philippines have signed an international fintech agreement called the Hungarian-Philippine Fintech Bridge. The cooperation creates opportunities for closer interconnection of the ecosystems of the two countries, facilitating increased information flow, new market linkages, and joint ventures.
Peak, representing Hungary, and Fintech Alliance.ph, representing the Philippines, signed the agreement on the Hungarian-Philippine Fintech Bridge on 27 September in Manila, the capital of the Philippines. The Hungarian fintech sector can now boast two cross-border collaboration programs together with the Spanish-Hungarian Fintech Bridge, which was signed back in 2021.
The collaboration was established with the support of the Embassy of Hungary in Manila and the Hungarian Ministry of Foreign Affairs and Trade.
The main objectives of the Hungariam-Philippine Fintech Bridge are to promote knowledge sharing, connect fintech companies from both countries, stimulate bilateral flows of venture capital and support the creation of new joint ventures.
The agreement will focus on six key areas in fintech:
- Remittances
- Overseas workers finance
- Parent & Child finances
- Financial Education
- Shopping Mall digitization
- Open Finance embedded by AI
In each of these areas, the two countries’ fintech sectors have outstanding solutions that can have a significant impact on the international market. The possibilities are almost limitless: from easier international distribution of products and services to utilizing synergies between companies to the birth of new joint ventures.
A collaboration full of opportunities
Remittances and overseas workers’ finances are of particular importance to the Philippines. Last year, remittance inflow accounted for 8.9 percent of the country’s GDP – a significant share of which is sent by overseas workers to their families. At the same time, an increasing proportion of the Hungarian population is trying their luck abroad, so international remittance developments can also be of great value to them.
Through the relationship between the two countries, it is also worth mentioning the inflow of foreign workers into Hungary, with a substantial proportion of workers coming from the Philippines. The recently announced joint initiative between Peak and RCBC could make their lives easier in the future.
Parent and child finances and financial education are highly relevant all around the world. Having basic financial literacy is essential in people’s lives. Yet in many countries, people’s knowledge falls short of expectations. Beyond the education system, the financial sector – and fintech – can make a strong contribution to developing people’s financial literacy, either together within the family, or independently through an app.
The digitalization of shopping malls is one area where Hungarian solution Intermall can help anywhere across the globe. And finally, artificial intelligence and open finance are among the most trending areas of technology and finance, with fintech professionals generally agreeing on their vast potential.
