On August 10, 2025, the Philippines central bank, Bangko Sentral ng Pilipinas (BSP), made a huge step in financial inclusion with the launch of its Credit Risk Database Philippines Web-based Scoring System (CRDPh system). This automated platform is designed to help banks and lenders more efficiently evaluate Micro, Small, and Medium Enterprises (MSMEs) for potential loans, a vital development in a country where the majority of MSMEs are funded via personal savings or loans from family and friends. On August 10, 2025, the Philippines central bank, Bangko Sentral ng Pilipinas (BSP), made a huge step in financial inclusion with the launch of its Credit Risk Database Philippines Web-based Scoring System (CRDPh system). This automated platform is designed to help banks and lenders more efficiently evaluate Micro, Small, and Medium Enterprises (MSMEs) for potential loans, a vital development in a country where the majority of MSMEs are funded via personal savings or loans from family and friends. August 10, 2025 August 10, 2025 majority of MSMEs majority of MSMEs Built with the assistance of the Japan International Cooperation Agency, CRDPh has the potential to unlock further opportunities for MSMEs in the Philippines, with this being an opportunity to both reshape domestic growth and be a model for other high-growth Southeast Asian economies. By leveraging technology to drive digital payments, support cross-border remittances, and integrate with Web3, the Philippines is positioning itself as an emerging fintech leader in Southeast Asia. Built with the assistance of the Japan International Cooperation Agency, CRDPh has the potential to unlock further opportunities for MSMEs in the Philippines, with this being an opportunity to both reshape domestic growth and be a model for other high-growth Southeast Asian economies. By leveraging technology to drive digital payments, support cross-border remittances, and integrate with Web3, the Philippines is positioning itself as an emerging fintech leader in Southeast Asia. MSMEs in the Philippines While Filipino MSMEs are increasingly pursuing digital growth and integration, the majority of Filipino MSMEs continue to focus on serving their local communities, with a focus on wholesale and retail trade, accommodation and food services, as well as manufacturing. The vast number of MSMEs makes up a sizeable percentage of the overall Filipino economy, thus potentially having rippling international effects if harnessed properly. digital growth and integration digital growth and integration continue to focus continue to focus focus focus In fact, MSMEs have been referred to as the “Philippines’ economic backbone” by the United Nations in previous reports, with MSMEs employing over 60% of the Philippines’ workforce and contributing to around 40% of total gross domestic product (GDP). However, MSMEs continue to face a significant funding gap from established institutions like banks. Despite specific legislation mandating banks to allocate a cumulative total of 10% to MSME lending, funds accessibility for MSMEs through banks remains extremely nuanced and complex, owing to a lack of financial history and limited acceptable collateral, among a variety of other factors. previous reports previous reports 10% 10% Overseas remittances and their impact With MSME funding primarily emerging from family and friends, the need for overseas foreign workers (OFWs) continues to be paramount for the Filipino economy. The BSP reported that in 2024, the personal remittances sent to the Philippines by its large number of overseas foreign workers (OFWs) consisted of 8.3% of the country’s GDP, with a significant growth in cash remittances from the United States, Saudi Arabia, Singapore, and the United Arab Emirates. In fact, Filipinos sent nearly $3b in personal remittances in April 2025 alone. 8.3% 8.3% April 2025 April 2025 This steady increase in remittances, combined with a young, mobile-first population, has also fueled an internet in digital payments in the Philippines, which has seen astronomical growth in recent history. Driven by widely-used mobile wallet providers like GCash, PayMaya, and GrabPay, financial services have been made more accessible and preferred for individuals and small businesses alike, despite over half of the Philippines remaining unbanked. As a result, the popularization of these mobile wallets has enabled MSMEs to participate more effectively in the digital economy. combined combined widely-used mobile wallet providers widely-used mobile wallet providers over half over half However, despite this availability of digital payments, access to startup capital remains a challenge for MSMEs, with platforms like CRDPh potentially unlocking more financial opportunities for MSMEs and the individuals that participate in them. Crypto adoption in the Philippines Beyond digital payments, the Philippines has also developed a significant interest in Web3 on both institutional and individual fronts. From an institutional perspective, most recently, the Philippines government announced a proposed Strategic Bitcoin Reserve Act in August 2025, potentially making the Philippines the home of Asia’s first sovereign crypto reserve mandating the purchase of 2,000 BTC per year over a five-year period. August 2025 August 2025 Additionally, in early 2025, a group of Filipino banks announced their efforts to introduce a peso-backed stablecoin, termed the PHPX,  The consortium behind this effort includes the Union Bank of the Philippines, Rizal Commercial Banking, Cantilan Bank, and the Rural Bank of Guinobatan, with additional leadership provided by Singapore’s JUST Finance. This followed on the heels of the late 2024 BSP announcement that it had completed initial pilot trials for Project Agila, its effort to test a homegrown central bank digital currency (CBDC). early 2025 early 2025 late 2024 late 2024 On an individual basis, crypto adoption remains equally strong. The Philippines ranks second in global cryptocurrency ownership  in late 2024, with over 50% of surveyed Filipinos reporting digital asset ownership. The popularity of blockchain-based, non-fungible token (NFT) games such as Axie Infinity further reflect how Filipinos have embraced digital assets, particularly as alternative income streams. In fact, Axie Infinity was so popular that it accounted for over a third of the game’s total daily active users (DAUs), making the Philippines one of the most sought-after markets for individual digital asset adoption. late 2024 late 2024 third third Conclusion The introduction of the digitally-native CRDPh highlights how the Philippines understands the need to provide new avenues of funding for its local MSMEs to truly foster economic growth. Combined with the country’s remittance market, high levels of digital payments adoption, and acceptance of Web3, the Philippines is positioning itself at the intersection of both community-driven entrepreneurship and fintech. With this in mind, the effects of having prosperous Filipino MSMEs may reshape financial innovation across Southeast Asia. In this context, MSMEs in the Philippines serve as both local pillars for economic opportunity and catalysts for regional economic transformation. Image Credit: NEGOSYO Image Credit: NEGOSYO NEGOSYO

This story contains new, firsthand information uncovered by the writer.

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How MSMEs in the Philippines Are Quietly Reshaping Southeast Asia’s Digital Economy

How MSMEs in the Philippines Are Quietly Reshaping Southeast Asia’s Digital Economy

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