Higala, a rising digital payments infrastructure provider, is gearing up to launch its platform in July — and it’s bringing 40 rural banks along for the ride. This move aims to expand financial access across underserved regions, setting the stage for a more connected and accessible banking landscape.
Rural Banks Get a Digital Boost
For decades, rural banks have been the backbone of small-town economies, but their digital presence has lagged behind larger financial institutions. Higala is looking to change that.
The company’s platform will allow these banks to offer instant digital payments, a service that’s becoming more of a necessity than a luxury. Among the first banks on board are Rizal Microbank, Guagua Rural Bank, and Rural Bank of Cadiz — part of a longer list of community-focused institutions now equipped to keep pace with the country’s digital shift.
Winston Damarillo, Higala’s CEO, hinted that more partnerships are in the pipeline, teasing potential deals with major universal banks and popular e-wallet services.
“We’re probably going to be announcing soon at least two [universal] banks and at least one, maybe all, of the wallet players,” Damarillo said.
Aiming for Financial Inclusion
The Philippines presents a massive opportunity for digital financial services. Damarillo shared some eye-opening figures: roughly 60 billion transactions take place every year, moving a staggering $2.7 trillion across the economy.
Despite those numbers, access to convenient, fast, and reliable digital payments remains uneven — particularly for rural communities. Higala’s entry could help bridge that gap, offering a lifeline to banks that otherwise might struggle to compete in the modern financial arena.
“This is the realization of [the Bangko Sentral ng Pilipinas’] open finance road map,” said Lito Villanueva, executive vice president and chief innovation and inclusion officer at Rizal Commercial Banking Corp. (RCBC). “It’s initially focusing on open payments use cases, making digital transactions more seamless and frictionless.”
Backed by Big Investors
Higala’s ambitions are backed by fresh capital. The company recently secured $2.8 million in seed funding from Talino Venture Studios — known for supporting sustainable innovation — and 1982 Ventures, a Singapore-based venture capital firm specializing in Southeast Asia’s fintech startups.
This funding is expected to fuel Higala’s rollout, helping the company expand its reach beyond rural banks to other financial institutions. The goal? To create a more inclusive and competitive financial ecosystem.
What’s Next for Higala?
The company’s strategy doesn’t stop at rural banks. Damarillo revealed that Higala is already collaborating with RCBC on SynerFi, an open payments platform that offers smaller banks a gateway into digital payments. This approach could level the playing field, allowing regional lenders to offer services on par with their larger, urban counterparts.
With universal banks and digital wallets potentially joining the mix, Higala could position itself as a major player in the country’s fintech landscape. As digital payments continue to reshape the global economy, it’s clear that even the smallest banks are getting a chance to tap into the future.
