Empowering PH SMEs with tech strategies, ensures growth amid economic disruptions

MANILA, PHILIPPINES – Key stakeholders from the private sector gathered at the recently concluded Empowering SMEs: Strategies of Growth and Resilience, held at the Manila Polo Club, Makati City. Organized by the small and medium-sized enterprise (SME) lender ProCredit Financing Corp. in collaboration with Singapore-based venture capital firm Integra Partners, the event shed light on how technology and digital transformation can bolster more opportunities for Philippine businesses in an ever evolving landscape.

The event advocated for financial inclusion with the vision of nurturing a tech-driven community of consumers and businesses. This is in line with the Bangko Sentral ng Pilipinas’ (BSP) objectives of promoting access to high quality financial services for the general public, and saw the participation of BSP representatives including Financial Inclusion Office (FIO) Acting Bank Officer V May H. Valdez, FIO Manager Eleanor Ramos, and Central Bank Associate Beatrice Alexa G. Karamihan.

Embracing Digital Transformation.

The first panel discussion focused on open banking and technology-enabled data infrastructure enhancements to accelerate SME financing. They underscored the crucial role of financial management to businesses to efficiently track data and make informed investment decisions.

“The main role of data access is getting access to automated and verified data to make lending decisions,” said Brankas CEO and Founder Todd Schweitzer. “Data is crucial for lending decisions, but one of the biggest challenges in the Philippines is that there are particular data points that you just are not able to collect,” added Paymongo CEO Jojo Malolos.

“We understand that accurate financial records are crucial for business success. While traditional methods often rely on financial statements, the complexities of local banking practices can make this challenging. That’s why we work closely with our clients to develop tailored solutions that simplify record-keeping and provide clear financial insights,” shared ProCredit Chief Lending Officer Dwaipayan Mitra.

The panel emphasized the need for collaboration between lenders and clients to create a supportive ecosystem for businesses. By partnering with banks and lenders, SMEs can secure funding and grow sustainably.

“Nurturing a growth-oriented mindset is about personal progress and building a dynamic enterprise that thrives on innovation and strong relationships. By embracing calculated risk-taking, remaining open to feedback, and fostering collaboration, we can empower our teams and drive our businesses forward,” shared LeadCore Technologies’ Ormina De Jesus, a ProCredit client.

Access to Finance for SMEs.

While the Philippines has a thriving business community, the second panel underscored obstacles that hinder growth optimization including limited financial data, digital infrastructure, and transparency in working with lenders.

“The first layer of financial inclusion is visibility – visibility of the human being. Many SMEs are proprietorships – they are the business. If you know the human, you know the business,” said Saripay General Manager Sandeep Bhalla.

Apart from relying on traditional lenders, more tech-centric players in the market can also transform the local community, and offer more options for easier access to financial support.

“We have put together experiences and learnings from challenging markets in emerging countries and are building a model of lending which allows us to eliminate the friction and fluff from the client experience as much as possible,” said ProCredit CEO Adnan Agha. “Lenders in this space need to become advisors to guide their clients, particularly on financial management, which will help significantly expand access to debt capital for the SME segment.”

While progress may take time to be seen on a macro level, the panel acknowledged that SMEs can develop faster with the right infrastructure, support, and legislation.

Digitizing Backend Operations.

To maximize the use of technology in improving business processes, the final panel shared valuable insights on the benefits of digitization and how SMEs can adapt using reliable tools with minimal disruption of traditional practices.

“Focus on your core business operations, and outsource the rest,” said Tranko General Manager Karan Bhaskar. “Your solution is only as good as your ability to implement it. SMEs have many off the shelf solutions, but bringing in technology means bringing in people who can implement it.”

As Filipinos highly depend on manpower to manage their day-to-day, the panelists highlighted the advantages of digitization for business owners. Among them were customized solutions and incentivized implementation, which combine traditional practices and digital solutions.

“While there is no one-size-fits-all strategy to guarantee the success of any business, embracing technology and the available tools in the market will make all the difference. More Philippine SMEs can grow and succeed with an open mindset, hunger for learning and a persevering attitude to maintain resilience in an evolving economic landscape,” concluded Adnan Agha of ProCredit.

This is the first of many events that ProCredit will host in the coming weeks and in 2025, continuing its advocacy for Filipino businesses across the country.

This first event was supported and attended by 360 Logix Solutions., Advance PH, Alon Capital, ARQ Capital, AUB, Brankas, Creador, Crestone Capital, CRIF, DEG, Digido, First Circle, Foxmont Capital Partners, GMA 7, Growsari-Tranko, Helicap, IFC, iGlobal Financial Services, Kindred Health Inc., Metrobank, NetBank, Norfund, OneLot, Paymongo, PhilBritish Insurance, Pondo Pinoy, RBAP, RFC, RIO, Salmon, Saripay, SAVii, Smile API, Sprout, Tala, UBX, USA-OEDG, USAID Digital Invest, USAID-SPEED, and Xendit.