Shift to digital world is already happening and slowly we are also seeing a shift to a Borderless society especially in trade.
12% of the major world banks have fully converted digitally while 38% into transformation. Paper Money is going away. Financial Technology (Fintech) is reshaping our Payment Systems, Asset Management, and even in Fund Raising activities and every year new and more efficient method are evolving and being developed.
- In the Philippines, QR transactions increased from Php 1.862B in 2018 to Php 3.275Billion first half of 2019.
- When it comes to digital trade, DTI has revealed Digital Trade currently enables up to Php 160 Billion
- By 2030, digital trade will enable an estimated Php1.9 Trillion of economic impact!
There are several advantages in being part of the digital world ecosystem however there are also pitfalls. It’s the pitfalls we need to establish risk management systems starting with ‘understanding the fintech world’.
For balance to achieve first understand digitalization impact in the fintech world. Digital payments, remittances are already part of our day to day life and laws already in place, but this is just a tip of the iceberg. There is a need to also fully appreciate tokenization. How it can help in fund raising.
Major part of this digital world is the shift in fundraising activities from IPO and Bonds to possibly Coint/Asset Offering. It is tho unfortunate that in 2017, 47% of the world’s Initial Coin Offerings fail and about 90% of the whitepaper was regarded as ‘fake’ and because of this China and South Korea banned ICOs. This is just an example where we need to see good equilibrium between positivity in digital trade but also be aware that there is a need for balance this with regulations.