Rising technological challenges now facing cooperatives and small enterprises in the Philippines such as mobile wallets as well as the country’s digital banking system are now driving the need to “future-proof” these particular grassroots sectors.
This was the sentiment brought up by DigiCOOP, a leading online service provider for cooperatives that advocates for digital transformation to ensure the relevance of these organizations, during the first-ever National Cooperative Business Congress (NCBC) held at the NOVADECI Convention Center in Novaliches, Quezon City.
To address this need, Ann Cuisia, Traxion’s CEO and also the founder and creator of DigiCOOP, offered one solution: “Through digitalization and adoption of digital tools such as open finance technology, it will be easier for cooperatives to apply for loans and adapt to government mandates towards modernization much faster.”
“Currently, the rigid requirements being imposed upon our cooperatives through the traditional financial system are hampering the growth of this particular grassroots sector. We are aiming to change all that with DigiCOOP, which makes the co-ops’ transition to online virtually seamless,” added Cuisia.
Registered under the Cooperative Development Authority (CDA), DigiCOOP is a digital platform that aims to revolutionize the way cooperatives serve their members. It offers an interoperable digital cooperative platform among member cooperatives to extend financial inclusion to its members using the latest technology.
According to its website, DigiCOOP currently represents about 10.7 million Filipino families.
For his part, Abad “Buddy” L. Santos, assistant secretary of CDA, stressed how PUV modernization and transport cooperatives are having difficulties adapting due to limited access to financial assistance.
“Cooperative insurance should be a part of our modernization plan,” he said.
A gathering of the top pillar cooperatives and cooperators in PH
DigiCOOP was one of the key presenters at the inaugural national cooperative gathering that included the country’s top pillar cooperatives and cooperators.
The event is DigiCOOP’s way of highlighting its dedication to providing a complete digital platform for cooperatives, which includes an online payment gateway; a marketplace which serves both members and non-members; e-learning; and credit scoring, among others.
During its first year, DigiCOOP onboarded the top 140 co-op leaders and integrated over 426 brick-and-mortar co-op branches into its digital platform.
More than 400 representatives from cooperatives all over the country attended the 2-day NCBC congress as they discussed various programs to help address the challenges in different industries including health, transportation, electric supply, as well as credit and financial services.
The NCBC conference concluded with a takeaway that “digitalization can help level the playing field for cooperatives with private corporations,” and that “by working together, cooperatives – from the biggest to the smallest – can confidently forge ahead toward a future that is rife with opportunities for the grassroots.”