ASEAN push to fix cross-border payments gains urgency

Insider Spotlight

• Payment fragmentation slows regional trade and remittances
• Interoperability seen as key to scaling digital finance
• Fraud data sharing emerging as policy priority
  
  
  

Efforts to streamline cross-border payments in Southeast Asia are gaining urgency as regulators and industry leaders grapple with fragmented systems that continue to slow transactions and raise costs.

At the Asia-Pacific Financial Forum Southeast Asia in Taguig City, Lito Villanueva — RCBC executive and FinTech Alliance PH chair — joined regional policymakers and industry players in discussions on how ASEAN and APEC economies can better align regulatory frameworks to enable faster and more secure digital transactions.

Why it matters

Cross-border payments in the region remain constrained by inconsistent standards, duplicated compliance requirements, and limited interoperability. These frictions affect both businesses expanding regionally and consumers relying on remittances.

Participants highlighted the need to embed interoperability into regulatory design, alongside adopting cross-border digital signatures and reciprocal know-your-customer protocols. 

In a company statement, it was noted that these measures could significantly reduce onboarding delays and compliance costs.

What’s gaining ground

A key proposal discussed at the forum is the establishment of a regional Fraud Intelligence Sharing network, allowing institutions and regulators to exchange anonymized threat data in real time.

“We must embed interoperability by design at the core of our regulatory frameworks, moving beyond voluntary standards toward a mandatory, unified architecture where systems are engineered to be borderless from inception,” Villanueva emphasized in his speech.

The approach reflects a broader shift toward treating cybersecurity as a shared responsibility, particularly as digital payment volumes increase across the region.

Big picture

ASEAN’s digital economy is projected to reach one trillion dollars, with further growth tied to how quickly member states align policies and infrastructure. 

Efforts like the Digital Economy Framework Agenda aim to accelerate integration, though progress remains uneven.

What’s next

The challenge now is execution, as regulators across jurisdictions with varying levels of digital maturity work to translate these proposals into coordinated policy and interoperable systems. —Princess Daisy C. Ominga | Ed: Corrie S. Narisma