LANDBANK’s recent partnerships with DICT and Visa accentuate the government’s push to digitize financial services for MSMEs and public agencies, as part of a comprehensive agenda of financial inclusion and transparency in the Philippines.
Partnerships For Every Filipino
On July 21, 2026, two major initiatives helped define the Philippines’ commitment to digital transformation.
First, the Department of Information and Communications Technology (DICT) and Land Bank of the Philippines (LANDBANK) signed a memorandum of understanding to develop AI‑enabled solutions for micro, small, and medium enterprises (MSMEs).
This partnership, aligned with Association of Southeast Asian Nations’ (ASEAN) Priority Economic Deliverable on AI‑Powered MSME Growth initiative, will provide affordable AI tools to help small businesses prepare bankable business plans, comply with government requirements, and access financing.
DICT Secretary Henry Aguda emphasized that AI must create “real opportunities for our people, especially our MSMEs that serve as the backbone of the economy.”
On the same day, LANDBANK partnered with Visa to launch the Government Purchase Card (GPC), a credit card system for government agencies to digitize low‑value purchases.
Over 700 cards have already been issued, with a target of 2,000 agencies onboarded by year‑end. The cards will be integrated with a digital expense management platform to automate spending, reconciliation, and reporting, enhancing transparency and accountability in public finance.
Small but Significant Government Steps
These initiatives are a reflection of LANDBANK’s twofold mission: supporting MSMEs, which account for 99.5 percent of businesses in the Philippines, and modernizing government financial operations.
MSMEs benefit from AI tools that strengthen creditworthiness and productivity, while government agencies gain efficiency and oversight through digitized spending. The collaborations involve DICT, Visa, and LANDBANK, bridging public and private expertise in a way that directly benefits both entrepreneurs and public servants.
In the long run, these projects aim to address financing gaps for MSMEs, reduce bureaucratic inefficiencies, and enhance fiscal transparency. By embedding AI into MSME operations, the government hopes to make small businesses more competitive and investment‑ready.
Meanwhile, digitized government spending reduces risks of corruption and leakage, aligning with broader governance reforms.
These measures also tie into the Philippine Development Plan 2023–2028, which emphasizes digitalization, transparency, and financial inclusion as pillars of sustainable growth.
The government’s bigger plan is to create a digital economy ecosystem where MSMEs thrive and public finance is transparent.
Bangko Sentral ng Pilipinas’ (BSP) Digital Payments Transformation Roadmap aims for 70 percent of Filipino adults to have transaction accounts and 50 percent of retail payments to be digital by 2028.
LANDBANK’s AI and Visa partnerships are building blocks toward this vision, ensuring that both private enterprises and public agencies are equipped with modern tools.
Serving the Underbanked
Digital financial inclusion is more than just giving people access to online wallets or mobile banking—it is about ensuring that financial services are affordable, accessible, and useful for all segments of society.
The underbanked are those who may have a bank account but still rely heavily on cash transactions, informal lending, or pawnshops for their financial needs. They are distinct from the unbanked, who have no formal financial access at all.
In the Philippines, the underbanked often include rural farmers, small sari‑sari store owners, and informal workers who may have accounts but rarely use them for digital payments or credit.
According to the Bangko Sentral ng Pilipinas (BSP) 2025 Financial Inclusion Survey, while 51 percent of Filipino adults now own a transaction account, only about 30 percent actively use digital financial services. This gap highlights that access alone is not enough; usage and trust are equally critical.
The reasons for the number of underbanked in the country are multifaceted.
Many Filipinos lack financial literacy, making them hesitant to use digital platforms. Others face infrastructure challenges, such as poor internet connectivity in rural areas.
Cultural habits also play a role, with cash remaining the preferred medium for daily transactions. For women and marginalized groups, social barriers further limit access to formal financial tools.
Digital financial inclusion seeks to address these barriers by offering low‑cost, user‑friendly, and secure digital solutions. It is not just about convenience; it is about empowering individuals to save, borrow, invest, and transact in ways that improve their economic resilience.
In the Philippines, where remittances and micro‑entrepreneurship are vital, digital inclusion have the potential to transform livelihoods by reducing costs and expanding opportunities.
How Financial Institutions Bridge the Gap
Financial institutions like LANDBANK are central to bridging the gap between the underbanked and full digital inclusion.
As a government‑owned bank, LANDBANK has a mandate to serve marginalized sectors, including farmers, fisherfolk, and MSMEs. Its recent partnership with DICT to develop AI solutions for MSMEs is a direct response to the challenges these businesses face in accessing credit. Through the provision of AI‑powered tools to prepare business plans and meet compliance requirements, LANDBANK is lowering the barriers to financing.
The role of financial institutions is not limited to providing access; it extends to building trust and confidence.
By ensuring compliance with BSP regulations and adopting secure digital platforms, banks reassure users that their money and data are safe. This trust is essential for encouraging the underbanked to shift from cash to digital transactions.
Furthermore, transparency and trust are the cornerstones of financial inclusion. Without them, even the most advanced digital tools will fail to gain widespread adoption.
The Government Purchase Card initiative exemplifies how transparency can be embedded into financial systems.
When procurements are digitized, every transaction leaves an auditable trail, reducing opportunities for corruption and misuse. This strengthens public confidence in government spending and ensures that taxpayer money is used responsibly.
For MSMEs, transparency in financing processes is equally important. AI‑powered tools that generate standardized, verifiable business plans help lenders assess creditworthiness more objectively.
This reduces the perception of bias and increases the likelihood of loan approvals. When MSMEs see that the system is fair and transparent, they are more likely to engage with formal financial institutions rather than relying on informal lenders.
Trust also extends to data security. In a digital economy, users must be confident that their personal and financial information is protected.
Financial institutions like LANDBANK, operating under BSP oversight, are required to implement strict data protection measures. This regulatory framework reassures users that their participation in digital finance will not expose them to undue risks.
Transparency and trust are not just ethical imperatives; they are economic necessities. They encourage participation, reduce transaction costs, and foster a culture of accountability.
In the Philippines, where skepticism toward institutions can be high, embedding transparency into digital finance is essential for achieving true inclusion.
DOPAY’s Role in Digital Inclusion
DOPAY complements LANDBANK’s initiatives by offering a gateway to financial inclusion, enabling seamless fund transfers, remittances, and crypto transactions under BSP oversight.
In a country where millions remain underbanked, DOPAY aims to help bridge the gap, offering compliant, innovative solutions that make digital finance both inclusive and trustworthy.
Not just that, with DOPAY’s Refer & Earn program, Filipinos can unlock new doors for earning possibilities with every successful referral.
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