Talino Ventures Studios and US-based Chemonics International, a leading sustainable development firm, have jointly invested $1.5 million to develop Higala, the pioneer startup Inclusive Instant Payment System (IIPS) in the Philippines.
Last Thursday, the firms launched Higala which will serve as a financial superhighway that will connect thrift banks, rural banks and microfinance institutions that are currently excluded from payment networks because of high switching and ramp-up costs.
“Higala will help modernize our country’s digital financial infrastructures and enable the participation of financial institutions through our network. Our goal is to make banking more inclusive, especially to the underserved segments of the population that have limited access to traditional banking services,” said Vice Catudio, Higala president and chief executive officer.
Higala noted the full potential for financial inclusion in the country remains untapped – with the presence of 400 rural banks in the Philippines, only 18 are part of InstaPay.
Higala promotes inclusion by lowering the cost of real-time payments, which helps financial institutions to reasonably price their instant payments.
Catudio said Higala is offering less than P1 per transaction.
It also aims to provide inclusive financial solutions to the underbanked as well as rapidly enable merchants to accept digital payments.
“Through Higala’s open payment platform and suite of solutions, we will enable new market players to aggressively develop and market innovative payment services to both consumers and merchants,” said Catudio.
“This includes integrating solutions such as regulatory technologies like e-KYC and AML-TF monitoring, AI-based risk detection and management, banking microledgers, payment hub that will enable instant fund transfer across participating banks, and a global transaction gateway for remittance,” he added.
Higala is backed by the Bangko Sentral ng Pilipinas and industry leaders, partners and collaborators, including Rizal Commercial Banking Corp., Xendit, FinTech Alliance.Ph and the Rural Bankers Association of the Philippines.
“We are committed to inclusivity, affordability, and the innovative approach to transaction management and settlements. Higala provides efficiency and equitability to fully support the nation’s move towards comprehensive financial inclusion,” Catudio said.
