Maya: Digital banking, stronger infrastructure speeds up MSME financing

Improving national digital infrastructure and simplifying policies—supported by digital banking—can significantly speed up access to financing for micro, small, and medium enterprises, according to Maya Bank President Angelo Madrid.

Madrid shared these views during a panel discussion at the Money20/20 Philippines Summit, where industry leaders examined how open banking and embedded finance can reduce friction and improve capital access for small businesses.

Financing gaps persist despite MSME scale

MSMEs make up nearly 99.6% of all businesses in the Philippines. They employ around two-thirds of the workforce and contribute roughly 40% of the country’s GDP. Despite this scale, access to formal financing remains uneven.

Many MSMEs continue to face barriers such as limited collateral, fragmented business records, and long approval timelines that do not reflect real-world operations. These constraints often slow down access to working capital, especially during periods of peak demand.

Digital banking works best with enabling systems

Madrid said digital banking can help address these gaps, but only when supported by strong national systems. He pointed to the need for simpler business registration, more standardized documentation, and wider adoption of digital records across government and financial institutions.

According to Madrid, progress in these areas reduces friction during onboarding and verification, allowing financial services to reach MSMEs faster and more efficiently.

Embedded finance shortens time to capital

Panel discussions highlighted how embedded finance—where payments, banking, and credit tools are built directly into business platforms—can improve MSME access to financial services.

Instead of navigating separate applications or physical branches, MSMEs can manage payments, accounts, and financing within a single system. This shortens approval cycles and improves time-to-cash, particularly during inventory restocking or seasonal demand.

Maya’s MSME model in practice

Drawing from Maya’s experience, Madrid cited the Maya Business app as an example of how embedded finance works at scale. Through a single interface, MSMEs can accept digital payments, manage funds, and access banking services.

Credit assessment is informed by transaction data and cash-flow activity, rather than fixed collateral alone. This allows working capital to be offered faster and in amounts aligned with actual business performance, making financing more practical for small enterprises.

Collaboration and policy alignment remain critical

Madrid also emphasized the importance of know-your-business (KYB) processes and sustained collaboration among regulators, financial institutions, and government agencies. He cited the Bangko Sentral ng Pilipinas (BSP), Department of Trade and Industry (DTI), and Securities and Exchange Commission (SEC) as key players in improving the ease of doing business.

While open finance and secure data-sharing frameworks can further improve credit assessment over time, Madrid noted that near-term impact depends on strengthening foundational systems and coordination across sectors.

“Improving access to finance isn’t just about new products,” Madrid said. “It’s about making the entire experience simpler—from onboarding and verification to disbursement and daily use.”

The Money20/20 Philippines Summit brings together leaders from banking, fintech, payments, and policy to discuss how technology can support inclusive and sustainable economic growth, with MSME financing remaining a central focus of the conversation.