Talino Venture Studios and Chemonics International have joined forces in a landmark initiative aimed at bolstering financial inclusion in the Philippines. Their partnership heralds the launch and seed funding of Higala, the country’s trailblazing Inclusive Instant Payment System (IIPS).
Higala, as an IIPS, is poised to revolutionize the financial landscape by acting as a vital conduit that connects thrift banks, rural banks, and microfinance institutions, which have long been sidelined from mainstream payment networks due to prohibitive costs associated with switching and on-ramp processes.
The venture comes in response to a stark reality: despite the presence of 400 rural banks across the archipelago, only a mere 18 are integrated into InstaPay, underscoring the pressing challenge of interoperability among these institutions. This lack of connectivity stifles the realization of full financial inclusion, thereby depriving numerous Filipinos of the advantages modern banking technologies can provide.
“At Talino, we are committed to the sustainable execution of development that benefits all stakeholders, especially the unbanked. With Talino and Chemonics providing funding for Higala, we bring together the impact of venture investing and global good to expand the benefits of financial inclusion to segments that need them most,” according to Winston Damarillo, CEO of Talino Venture Studios.
At the heart of Higala’s mission lies a commitment to lowering the cost of real-time payments, in turn, enabling financial institutions to offer instant payment services at affordable rates. The startup aims to extend inclusive financial solutions to the underbanked segments of society while facilitating swift integration for merchants to accept digital payments seamlessly.
One of the pivotal aspects of Higala’s infrastructure is its core instant payment technology, designed to cater to financial institutions of all sizes. Through white-label app services, Higala seeks to transform traditional banks into digital entities, thus furthering the reach of financial services across the nation.
“We are excited to embark on a new journey with Higala, a testament to our commitment to innovation and financial inclusion in the Philippines and other dynamic markets across the globe. Drawing from three decades of impactful partnerships and success in the economic growth space in the Philippines, Higala embodies our vision for affordable, real-time transactions accessible to all Filipino communities,” said Jamey Butcher, President and CEO of Chemonics.
Integral to Higala’s innovative approach is its partnership with Mojaloop Foundation, a non-profit organization dedicated to advancing financial inclusion through its open-source software, Mojaloop. By harnessing the capabilities of Mojaloop’s open payment platform, Higala facilitates seamless connectivity among diverse financial entities, including banks, payment gateways, merchants, and regulatory bodies like the central bank. This collaborative framework enhances the affordability and accessibility of financial transactions, paving the way for a more inclusive financial ecosystem in the Philippines.
In addition to the Bangko Sentral ng Pilipinas (BSP), Higala has forged partnerships with key industry players such as the Rizal Commercial Banking Corporation, Xendit, FinTech Alliance.Ph, and the Rural Bankers Association of the Philippines, signaling widespread support for its mission to democratize access to financial services across the nation.