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Philippine Institute for Development Studies

More Filipinos going digital—but over half still unbanked, PIDS study finds

by Contributor April 29, 2026

written by Contributor

More Filipinos are moving into digital finance, with account ownership nearly doubling from 29% in 2019 to 56% in 2021, and digital payments now accounting for 57.4% of retail transactions. Yet despite this rapid shift, more than half of the population remains outside the formal financial system, according to a new study by the Philippine Institute for Development Studies (PIDS).

The study underscores a growing disconnect: digital adoption is accelerating, but financial inclusion is not keeping pace.

Titled, “Digital Financial Platform Engagement and Financial Inclusion in the Philippines: Insights on AI Deployment and Policy Implications” by PIDS consultants Nikka C. Pesa and Rutcher M. Lacaza, and PIDS supervising research specialist Mary Grace R. Agner, the paper finds that Filipinos who actively use digital platforms such as e-wallets, online banking, and digital payments are more likely to own and use formal financial accounts.

“Digital financial engagement is a strong and consistent determinant of financial inclusion,” the authors noted, emphasizing that regular use of these platforms increases participation in the formal financial system.

This suggests that the issue is no longer just access to financial services, but how frequently and effectively these services are used.

However, the expansion of digital finance has not translated into universal inclusion.

The study points to persistent barriers that continue to exclude many Filipinos, particularly those from low-income households. These include a lack of money, high transaction costs, limited documentation, and low trust in financial institutions.

Even as digital payments become more common, these constraints prevent a large segment of the population from fully participating in formal financial systems.

The findings also highlight the emerging use of artificial intelligence (AI) in shaping financial services.

AI is increasingly embedded in digital platforms, powering functions such as fraud detection, credit scoring, and chatbot-based customer support.

While these technologies have the potential to improve efficiency and expand access, their adoption remains uneven across the sector.

Large financial institutions are leading the adoption of AI, while smaller cooperatives and savings banks face structural and resource constraints that limit their ability to adopt such technologies.

This uneven rollout points to a broader structural issue: while consumers are rapidly embracing digital tools, institutional capacity to deploy advanced technologies remains limited.

The study describes this imbalance as a gap between strong consumer demand and uneven institutional readiness—one that could slow the pace of inclusive growth if left unaddressed.

Beyond access and technology, the study also raises concerns about trust and security. As digital transactions increase, so do the risks of fraud, data privacy, and cybersecurity—factors that can discourage users from engaging more fully with financial platforms.

To address these challenges, the authors recommend strengthening digital infrastructure, expanding financial and digital literacy, and ensuring clear and responsible governance of AI systems.

“By strengthening digital infrastructure, promoting financial and digital literacy, and ensuring responsible AI adoption, the Philippines can transform digital financial platforms into a true catalyst for inclusive and sustainable growth,” the study stated.

At the same time, the authors caution that technology alone cannot close the inclusion gap.

“Persistent socioeconomic barriers, institutional disparities, and gaps in digital literacy continue to limit participation, calling for stronger collaboration among policymakers, regulators, and the private sector,” the authors also stressed.

The findings come ahead of the PIDS webinar, “AI and the Future of Work: Implications for Skills, Jobs, and Public Sector Readiness,” scheduled on April 30, 2026. The event will explore how AI is reshaping jobs, skills, and institutions, complementing the study’s insights on how AI is transforming financial services.

As digital tools become increasingly central to everyday transactions, PIDS emphasized the need to ensure their benefits are shared more broadly across all sectors of society.

Read the full study at https://doi.org/10.62986/dp2026.03.

Photo by Nathana Rebouças on Unsplash

April 29, 2026 0 comments

Business

3 lessons from women who successfully built careers in freelancing

by Contributor April 10, 2026

written by Contributor

MANILA, Philippines – Earning through freelance work has never been more accessible. With a stable internet connection and numerous job platforms, opportunities can come from anywhere – and for many Filipino women, they do. A 2020 study by the Philippine Institute for Development Studies (PIDS) showed that an increasing number of women are engaging in online work because it lets them earn while balancing home responsibilities.

But access doesn’t always mean ease. Freelancers face inconsistent income, unpredictable clients, and little guidance on how to navigate it all. For longtime freelancers Mia Juan and Dana Novales, building a career online has meant learning these lessons in real time. With more women entering the freelancing field, they share three lessons they’ve learned:

1. Build real relationships, not just transactions.

Freelancing can make work feel transactional. You get assigned a task, submit the work, get paid, and then move on. But the most successful freelancers don’t treat work that way. In such an unpredictable field, being remembered matters.

According to Dana, “Real relationships are built on service, not strategy.” Every “Well done!” or “Good work!” can open doors to new opportunities, so don’t waste them. Instead, take an extra step to establish a real relationship with your clients: check in, understand what they need, and find ways to make the process easy for them.

2. Set up systems that work for you.

Handling different clients with different ways of working can get overwhelming fast. For Mia, having systems for your workflow simply makes this easier and helps manage client expectations.

*A look into Mia’s workstation, where she manages her daily freelance work and tasks*

That can be as simple as being clear about what services you offer. “It’s basically saying this is what I can offer and setting a clear boundary of what you do not do. That way, there is no miscommunication of responsibilities, which happens commonly in freelancing work,” she shares. It also helps to have a proper onboarding flow – having contracts, timelines, and payment terms in place before you start, not while you’re already in the middle of the work.

3. Find solutions that work for your peace of mind.

Some challenges only appear once you’re in the midst of them, and for many freelancers, realizing that foreign payments come with fees, delays, and uncertainty is when freelancing starts to feel stressful.

*A closer look at Dana’s work routine, which includes various creative works for her clients*

“Earning in USD sounds exciting–until fees, forex, and delays eat into your income,” Dana points out. She shares that this is something she wishes she had known earlier in her freelancing career. “That’s why there is importance in having the right structures in place, especially if you’re a mom who has to think of managing your home, paying your bills, among many other responsibilities.”

That’s why Mia and Dana now use the new GCash Virtual US Account, a feature within the GCash app that lets freelancers receive USD payments from US clients more directly without the usual surcharges. After creating an account, you get your own ACH and Wire Routing Number, which you can give to your clients for direct deposits of your pay.

You can also choose to convert your USD to PHP when you want, depending on live forex rates, which you can see on the platform – giving you control over how much you actually receive. Once it’s in your wallet, you can use it to send money, pay bills, or add to your savings.

Creating a GCash Virtual US Account is easy in just a few steps.

Open the GCash app. Tap US Accounts in the Explore the App section
Tap Continue and verify your information
Complete your account creation

April 10, 2026 0 comments

News

Violent discipline at home lowers Filipino kids’ odds of staying in school—PIDS

by Contributor December 9, 2025

written by Contributor

VIOLENT discipline at home lowers Filipino children’s chances of staying in school by about half, according to a new study by the Philippine Institute for Development Studies (PIDS).

Nearly two in five Filipino children experience physical or emotional violence from a parent by age 10—a form of early harm that significantly weakens their school engagement later on.

“While a child’s development is expected to flourish at home, for these children, home is where fear and harm begin,” said PIDS project technical specialist Aaron Carlos Manuel during a PIDS public webinar where the findings were presented.

He explained that “early childhood experiences shape mental health outcomes,” affecting how violence may influence emotional regulation, behavior, and engagement in school.

The study, “Early Harm, Lasting Impact: The Effect of Parental Violence on Educational Outcomes Among Filipino Children,” authored by Manuel along with Senior Research Specialist Lyle Daryll Casas and Senior Research Fellow Dr. Valerie Gilbert Ulep, draws from a long-term national study tracking nearly 5,000 children from late childhood to young adulthood.

Violence at home remains widespread

The study found that 39.5% of 10-year-olds experienced physical or emotional violence from a parent in the past six months.

The numbers stay high as they turn 11 and 12, and even as they grow older—35% in the second wave and 34% in the third wave of the study. The rate only drops around 27% in the fourth wave.

This mirrors global patterns, with “about half of the global child population experiencing some form of violence at some point in their lives.”

Early exposure weakens schooling outcomes

Children exposed to parental violence at age 10 were about 50% less likely to be enrolled in school by age 14 to 15. Most children remain in school overall, but those who are unenrolled are disproportionately from homes where violence occurs.

“For example, out of 1,000 children, enrollment is still very high at 96%. But among the few who are not enrolled, a larger share comes from the children who were exposed to parental violence,” Manuel said.

Both boys and girls show reduced odds of staying enrolled, though the link is statistically stronger for boys.

The study also shows that these children tend to start school with weaker skills. About 1 in 4 of them score low in math, reading, and science, and their average IQs are lower.

Later on, their school performance continues to trend lower, but the differences are not substantial enough to be statistically significant.

Call for better measurement and stronger interventions

Discussant Dr. Alejandro Herrin, visiting research fellow at the University of San Carlos-Office of Population Studies, emphasized the need to improve how the country measures violence, noting that current survey tools do not capture key elements such as intention and repetition. He also recommended examining violence alongside bullying by peers and adults.

“What is not clear is how close we are to measuring that concept,” he said, explaining that Philippine laws and international standards often include elements—such as “intention” and “repetition”—that are not fully captured in current survey tools.

He added that future analyses should examine violence alongside bullying by peers, adults, and classmates.

Furthermore, the study’s authors stressed the need for stronger prevention and support systems.

They highlighted the importance of early interventions combining positive parenting programs, school-based initiatives, and community support.

“To ensure the success, multi-sector collaboration is important… With the leadership of the DSWD and the DILG, [we need to strengthen data systems] to allow more comprehensive understanding of how violence really shapes learning trajectories,” Manuel said.

Watch the recording of the webinar at https://bit.ly/pidslive112725 and download the study at https://bit.ly/pidsdp2025-21. ### — MJCG

December 9, 2025 0 comments

Business

Sari-sari stores using AI see 46% sales jump – Packworks report

by Contributor December 2, 2025

written by Contributor

MANILA — Artificial intelligence (AI) is beginning to reshape how local sari-sari stores operate, helping small retailers make smarter decisions and improve profitability through practical, data-driven insights.

New findings from tech startup Packworks.io show that AI is no longer a distant concept for microenterprises but is becoming a tool that directly supports day-to-day store management and sales performance for neighborhood stores.

Packworks analyzed more than 300 stores in its network over a two-week period following data collection in September 2025 and recorded a 46% increase in daily gross merchandise value (GMV). This increase highlights substantial gains in overall store efficiency, resulting in a 17% rise in total sales for stores during the same period.

Packworks also found that stores that applied AI-driven recommendations earned higher revenue despite operating on 20% fewer active selling days—dropping from five to four days over two weeks. This indicates how AI can guide store owners in managing inventory, improving product mix, and planning demand more efficiently, enabling owners to maximize sales during their operating hours.

The insights come from Packworks’ analysis of sari-sari stores that accessed its Store Insighting Project (SIP) document, a personalized report that turns each store’s transaction history into actionable recommendations powered by AI. By reviewing pre- and post-performance across stores, Packworks quantified the impact of engaging with the SIP document on business outcomes for its partner stores.

The analysis also showed that the increase in sales was driven by underperforming products identified by the AI tool, giving store owners insight into which stock to move to maintain operational efficiency.

Packworks’ AI-powered precision marketing tool was developed with DOST-PCIEERD’s Startup Grant Fund (SGF) Program, awarded in 2024 to support wider AI adoption in the country’s micro-retail sector. The company also partnered with ST Telemedia Global Data Centres (Philippines) (STT GDC Philippines) to access its AI Synergy Lab to run large-scale machine learning models, and with Ateneo’s Business Insights Laboratory for Development (BUILD) to build a comprehensive data warehouse and business intelligence tools.

“Even at this early stage of adoption, we’ve recorded increased sales and enhanced operational efficiency from stores by using the AI tools we’ve developed with support from DOST and through our collaborations with STT GDC and Ateneo BUILD. As stores learn to leverage the recommendations from the AI-driven insights they can access through SIP, microretailers can make smarter decisions that translate into higher sales and more efficient operations,” Packworks chief data officer Andoy Montiel said.

Packworks’ latest innovation aims to complement the government’s efforts in helping micro, small, and medium enterprises (MSMEs) adopt AI. While AI adoption could unlock PHP 2.8 trillion economic benefits by 2030 across sectors, a report by the Philippine Institute for Development Studies (PIDS) shows that only 14.9% of local businesses currently use AI tools. This wide gap, despite widespread computer ownership and internet access, indicates a slow rate of adoption and highlights the need for accessible solutions.

“Our mission at Packworks is to close the gap by making AI practical, accessible, and useful for the smallest retailers. Our latest innovation highlights the immense potential of how technology, especially AI, and strategic partnerships can drive sustainable growth for neighborhood stores across the Philippines,” Packworks co-founder Hubert Yap said.

Packworks’ mission to bring AI into micro retail stores aligns with the Philippine Development Plan 2023-2028, which recognizes the role of digital transformation and emerging technologies like AI in increasing efficiency and revitalizing industries and services.

December 2, 2025 0 comments

Business

SHDA pushes for people-centered and inclusive housing strategies at National Developers Convention

by Contributor October 31, 2025

written by Contributor

AS THE Philippines observed the National Shelter Month in October, the Subdivision and Housing Developers Association (SHDA) advanced a recalibrated, people-centered approach to housing, supported the expansion of the Pambansang Pabahay Para sa Pilipino Program (4PH), and adopted convention resolutions during the 33rd SHDA National Developers Convention held on October 9–10, 2025, at the Makati Shangri-La Hotel.

Themed “Recalibrate: Upgrading Housing Strategies for a Better Tomorrow,” the event underscored the private sector’s crucial role in creating inclusive and sustainable communities in partnership with the Department of Human Settlements and Urban Development (DHSUD).

The two-day convention gathered over 400 key stakeholders, from the government sector, real estate developers, financial institutions, and policy experts, to refine strategies for delivering affordable, inclusive, and resilient homes under the 4PH program. Philippine Institute for Development Studies (PIDS) vice president Dr. Marife Ballesteros shared insights on demographic shifts and housing trends, while Pag-IBIG Fund CEO Marilene Acosta provided updates on financing and programs that directly support 4PH’s nationwide rollout.

SHDA national president Engr. Francis Richmond Villegas emphasized that collaborative reforms are key to achieving the administration’s housing goals. “Through the 4PH program, we see unprecedented opportunities for developers to help deliver more homes, more efficiently, and with greater social impact,” he shared.

SHDA 2025 National Convention chairperson Renelyn Tan-Castillejos highlighted the importance of synergy and of bringing together key stakeholders to address the country’s housing needs. “The role that the real estate sector plays in nation building is vital not only through the construction of homes but more importantly in the creation of safe and livable communities using sustainable technologies,” she said.

The panel discussions centered on policy reforms aligned with DHSUD’s 8-Point Housing Agenda, particularly advancing the government’s flagship 4PH initiative, highlighting the importance of community when building housing developments, and integrating Environmental, Social, and Governance (ESG) principles in development projects.

The government echoed the call for stronger collaboration. In her keynote message, DHSUD Senior Undersecretary Atty. Sharon Faith Paquiz emphasized, “Collaboration allows us to continuously enhance our programs and initiatives for the Philippine housing sector. Moving forward, let us inspire more partnerships, with the public and private sectors working hand in hand to build a future where every Filipino has access to safe, affordable, and resilient housing through our united efforts.”

Among the highlights of this year’s convention were the panel on women leaders in real estate and the pivotal role of developers in advancing the ESG agenda. Speakers and panelists emphasized that people-centered and inclusive leadership is essential to driving transformation in the housing sector, from policymaking to on-the-ground development practices. As the housing sector embraces global best practices, SHDA urged the industry to strengthen collaboration in building climate-resilient, livable, and inclusive communities. Discussions also explored how ESG integration could drive long-term value creation while balancing sustainability and affordability for Filipino homebuyers.

The convention also reaffirmed SHDA’s policy priorities under its “Essential Few” agenda, which continues to guide the association’s housing reform advocacy. These priorities include the expansion of the 4PH program, calling for the continued rollout of the administration’s flagship housing initiative through stronger public-private collaboration; streamlined permits and one-stop shops to digitalize and simplify permitting processes; and institutionalized housing incentives that encourage more developers to participate in affordable housing production. These priorities aim to modernize systems, lower costs, and accelerate housing delivery, ensuring that more Filipino families can access affordable and sustainable homes.

The convention also emphasized the power of cross-industry partnerships to reduce production costs, unlock financing innovation, and improve housing accessibility. To further drive housing innovation, SHDA underscored that private developers play a vital role in aligning national goals with practical, scalable, and community-based solutions that meet the evolving needs of Filipino families.

In his message, SHDA national chairman Ar. Leonardo Dayao Jr. highlighted the importance of fostering empathy and sustainability in policy direction. “Our focus on people-centered development ensures that housing reform is not only about infrastructure but also about building communities that uplift the quality of life,” he said.

SHDA corporate secretary Atty. Marianne Lina-Cruz underscored the role of the convention resolutions in reinforcing private-public synergy, saying, “These resolutions reflect the shared vision of government and industry partners to make sustainable housing accessible to every Filipino family.”

The 33rd SHDA-DHSUD National Developers Convention was made possible through the support of sponsors and partners including Citihomes Builder and Development, Inc. (CBDI), 8990 Housing Development Corporation, Pag-IBIG Fund (HDMF), SM Development Corporation (SMDC), Republic Cement and Services Inc., PCON International Corp (EcoBloc), Amaia Land Corporation, Avida Land Corporation, Bank of the Philippines Islands (BPI) Housing Loan, Banco De Oro (BDO), Dutch Boy (Boysen), Community Property Managers Group Inc., Davies Paints Philippines Incorporated, Hocheng Philippines Corporation (HCG), Philippine Guarantee Corporation (PHILGUARANTEE), Phinma Property Holdings Corporation, Property Company of Friends, Inc., Lynville Land Development Corporation, Phirst Park Homes Inc., Home Mavericks Inc., Red Oak Properties, Inc., R.J. Lhinet Development Corporation, United Steel Technology (SteelTech) International Corp., Moon Rabbit Ventures Inc. (UWI), Wee Community Developers, Inc., World Home Depot, Globe, Cadence Property Development Corporation (CPDC), Cathay Land, Inc. (South Forbes), Hellenes Land Inc., Convergence Realty and Development Corporation, Homemark, Inc., Masaito Development Corporation (MDC), Precast and Construction Solutions, P.A. Alvarez Properties, Prominence Properties, Inc., Raemulan Lands Incorporated, RCD Land Inc., RK Premier Corp., Surewell Equities Inc., and Philippine Bank of Communications (PBCOM).

SHDA reaffirmed its commitment to continuing to work closely with DHSUD and other key shelter agencies to fast-track housing reform and promote human-centered, sustainable communities. The association continues to lead policy dialogue and partnership-building efforts toward a housing ecosystem that empowers Filipino families and supports inclusive national development.

October 31, 2025 0 comments