Philippines-based payments and banking startup Higala just achieved a significant milestone with their recent $4 million seed round. This funding is set to accelerate digital inclusion in underserved communities across the country, and as someone who has studied the challenges of financial exclusion, this development is noteworthy.
I’ve always believed the fintech ecosystem thrives when accessibility and affordability take center stage. Higala is proving this by targeting the underserved and unbanked in the Philippines, where millions still struggle to gain access to basic financial services. The backing of Chemonics International and Talino Venture Studios makes this venture particularly promising, as both have strong track records in aligning private innovation with public good.
A closer look at Higala's mission
Higala intends to overhaul payment systems for smaller financial institutions like rural banks and thrift banks. These organizations often face technical and cost-related barriers when trying to modernize and compete with bigger players. Higala’s banking solution, built on ISO 20022 standards in collaboration with Mojaloop's open-source payment technology, provides real-time, low-cost transaction capabilities. By lowering implementation costs, Higala makes modernization easier to achieve for smaller institutions.
My background in finance and AI has taught me that infrastructure can make or break financial accessibility. Traditional systems in developing markets often rely on outdated payment switches, creating bottlenecks and inefficiencies. Higala’s innovative approach addresses this problem head-on with an open-source interoperable payment network. This solution is bound to improve resilience in payment systems across the country, and eventually, globally.
What makes Higala's approach unique?
Let’s break this down. First, the core banking providers in countries like the Philippines charge fees that make digital adoption prohibitive for small-scale financial institutions. Higala removes this barrier with its open-source model. Second, their partnerships with Mojaloop and ISO standards ensure both long-term security and global scalability. This is not about developing a flashy product; it's about building financial ecosystems that last and adapt.
Statistics to keep in mind
- More than 50 million Filipinos remain unbanked or underbanked.
- Smaller financial institutions make up 75% of banking entities yet process only a fraction of total transactions due to technical limitations.
- Higala claims it has reduced implementation costs by up to 60%, making modernization more realistic for rural banks.
These statistics uncover an untapped market ready for digital transformation. As an entrepreneur, such numbers excite me, they indicate clear gaps that can be filled with smart, cost-effective solutions like Higala’s.
What entrepreneurs can learn
Here’s a quick guide for those inspired by Higala’s model:
- Map the issue: Start by digging into underserved areas with proven demand for digital solutions. From my experience, rural areas often have high mobile penetration rates but low banking access.
- Collaborate wisely: Form partnerships with development-focused organizations. Chemonics International’s inclusion in Higala’s strategy exemplifies how collaboration speeds up progress.
- Adopt standards: Using globally acknowledged frameworks, like ISO 20022, ensures your solution integrates efficiently with other systems while remaining user-friendly.
- Focus on cost reduction: Higala’s near-zero implementation fees made them desirable for regulators and investors alike. Cutting costs without sacrificing quality is often the winning formula.
Watch out for common pitfalls
In my career, I’ve witnessed several financial startups making these mistakes, don’t let them derail you:
- Ignoring user behavior: Simply deploying a solution doesn’t ensure adoption. You need outreach and education programs to onboard users effectively.
- Overcomplicating systems: Keep infrastructures simple. Overbuilt products often alienate small-scale users who lack technical expertise.
- Rushing replication: Scaling without understanding local needs in new markets leads to failure. Always review market-specific requirements before expanding.
Lessons for founders in emerging markets
What Higala demonstrates is the true effectiveness of identifying scalable solutions while keeping financial inclusion as the end goal. The success of similar ventures often comes down to simplicity, affordability, and strategic partnerships. This approach doesn't just transform banking, it creates sustainable access to finance.
Looking ahead, Higala’s blueprint could expand beyond the Philippines to other regions where underserved communities face similar barriers. Southeast Asia, Latin America, and even parts of Africa might benefit from adopting this model.
Final Thoughts
Higala’s journey is a testament to both the value of collaboration and the importance of focusing on scalable, community-driven solutions. For founders and startups in fintech, this is a perfect use case to study. It combines technology, partnerships, and real-world impact seamlessly.
As someone who has founded startups aiming to solve societal challenges, I find Higala’s progress refreshing. It shows us that current ecosystems are ripe for remodeling through open-source technologies and inclusive thinking. Entrepreneurs should take note, this is the kind of innovation we need more of in the years ahead.
FAQ
1. What is Higala and what does it aim to achieve?
Higala is a Philippines-based payments and banking startup focused on providing secure, inclusive banking infrastructure for underserved communities. It empowers smaller financial institutions like rural and thrift banks by modernizing payment systems and encouraging digital financial inclusion. Learn more about Higala on Finextra
2. How much funding did Higala raise, and who were the investors?
Higala successfully raised $4 million in seed funding. Significant investors include Chemonics International and Talino Venture Studios, known for expertise in financial inclusion and fintech innovation. Explore more about Higala’s seed funding at TechNode Global
3. What innovative technology powers Higala’s platform?
Higala’s payment system is built on ISO 20022 standards and integrates Mojaloop’s interoperable, open-source payment technology. This enables real-time, low-cost transactions and supports smaller institutions in modernizing their services. Learn more about Mojaloop
4. What challenges does Higala address for rural banks and thrift banks?
Higala reduces barriers like high transaction costs, outdated payment switches, and technical limitations to help rural banks swiftly deploy modern digital financial products. By lowering implementation costs by up to 60%, Higala enables more institutions to serve unbanked and underbanked communities. Discover insights on Higala from Finextra Research
5. Why is financial inclusion essential in the Philippines?
Approximately 50 million Filipinos are either unbanked or underbanked, with smaller financial institutions making up 75% of the banking entities in the country yet handling only a minority of transactions due to inefficiencies. Higala’s focus addresses this major gap in digital financial access. Check out E27’s coverage on Higala’s mission
6. How does Higala scale its impact globally?
Higala plans to replicate its model in other emerging markets, such as Southeast Asia and Latin America, leveraging its open-source payment network to enhance financial inclusion worldwide. Explore scalability insights at TechNode Global
7. What are the benefits of ISO 20022 standards used by Higala?
ISO 20022 standards offer a global framework for data-rich and interoperable payments. Higala’s adoption ensures long-term security, scalability, and seamless integration with other financial systems. Learn more about ISO 20022
8. What partnerships support Higala’s development?
Higala is driven by strategic partnerships with Chemonics International, Talino Venture Studios, and Mojaloop, making digital modernization achievable for smaller banks in underserved areas. Discover Chemonics International’s role
9. How does implementing Higala’s solution affect transaction costs for banks?
Higala’s platform dramatically lowers implementation costs by up to 60%, allowing banks to provide affordable real-time payments and integrate digital channels efficiently. Learn more about Higala’s impacts via Finextra
10. Who are Higala’s founders and leadership team?
Higala’s CEO is Winston Damarillo, while Chairman Jamey Butcher also leads Chemonics International as CEO. Their leadership combines tech-driven innovation with sustainable development expertise. Read about Higala’s leadership at TechNode Global
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.
