Major Partnership Aims to Digitize Rural Philippine Banking
In a significant move to advance financial inclusion across the Philippines, global payments leader Visa has announced a strategic partnership with fintech infrastructure provider M2P Fintech and CTBC Bank (Philippines) Corp. This collaboration, announced on November 10, 2025, is specifically designed to empower rural and thrift banks with the capability to offer digital debit cards to their customers.
Breaking Down Infrastructure Barriers
The core of this initiative is an innovative "issuance-in-a-box" framework that allows smaller financial institutions to bypass the traditionally high costs of building their own digital payment infrastructure. This model seamlessly integrates Visa's global payments network, M2P Fintech's robust technology platform, and CTBC Bank's established banking license.
Through this partnership, participating banks will be able to issue both physical and digital Visa debit cards to their account holders. This is a game-changer for institutions that previously lacked the resources to compete with larger banks in the digital space.
Addressing a Vast Market Need
The potential impact of this initiative is substantial. According to data from the Bangko Sentral ng Pilipinas, rural and cooperative banks serve a massive customer base of over 24 million depositors nationwide. Thrift banks account for an additional nearly 10 million accounts.
Despite this extensive reach, these smaller banks collectively hold less than eight percent of total banking assets in the country. This disparity highlights the critical need for digital transformation solutions tailored to their scale and operational context.
Enhanced Security and Consumer Confidence
Security remains a top priority for the partnership. Banks that join the program will gain access to Visa's sophisticated suite of risk and fraud prevention tools. This includes Visa Advanced Authorization and Visa Risk Manager for proactive threat detection.
Furthermore, the Visa Resolve Online system will be available to facilitate faster dispute resolution, a feature designed to boost consumer confidence in using digital payment methods.
"This collaboration advances Visa's commitment to financial inclusion and innovation in payments," stated Jeffrey Navarro, Country Manager for Visa Philippines.
Madhusudanan R, Co-founder of M2P Fintech, emphasized that the initiative would significantly enhance efficiency and service delivery for the partner banks. Luis Elizaga, President of CTBC Bank, pointed out that the program specifically aims to digitize rural institutions that serve vital sectors of the Philippine economy, including agriculture and MSMEs (Micro, Small, and Medium Enterprises).
