The Philippines is one of the best destinations when it comes to outsourcing and offshoring. Many international and even local businesses have sought after the prime locations in central business districts in the country. Aside from this glamorous title, the country’s capital has earned a new rank under its belt — being part of the top 40 emerging startup ecosystems in the world.

According to the Global Startup Ecosystem Report (GSER) from Startup Genome, Manila, the Philippines’ capital, was ranked within the 31-40 bracket together with nine other major cities, such as Houston in the United States and Xiamen in China. To be specific, the Department of Trade and Industry (DTI), an executive department that oversees and regulates trade regulation and fair trade laws in the Philippines, stated the country’s capital obtained the 36th spot on GSER’s ranking. The ranking positioned the country as one of the best places for fintech and startup as well as cementing fintech and digital commerce as Manila’s sub-sector strengths. The results were based on different factors, which are funding levels, overall performance, industry experience, talent, and market reach.

The result also shows as proof that a country provides an abundance of opportunities in the Philippines, with fintech companies compromising around 15% of Manila’s startups. 15% may sound small compared to other industries. Still, the transaction value of these startups already reached approximately $10 billion last year and is expected to increase by 20% this year even if there’s an ongoing pandemic.

“The proliferation of fintech and e-commerce startups in the country is a testament to the abundance of opportunities in the Philippine market. By mutually reinforcing one another, these two sectors are enabling the growth of traditional sellers and buyers despite today’s trying times,” Undersecretary for Competitiveness and Innovation Rafaelita Aldaba said via Manila Bulletin. “Our young, creative, and resourceful pool of talent will keep our ecosystem vibrant and competitive in the years ahead.”

Despite being ranked below its neighboring Southeast Asian countries, such as Malaysia and Indonesia, Manila is experiencing stable growth and development in the fintech industry. Also, the report stated that fintech and larger startup ecosystem in Manila is in the activation phase, meaning the ecosystem is inching towards globalization, attraction and integration.

“We strongly believe that Filipino startups can compete globally, especially with the right collaborators. We are constantly looking out for the chances to showcase the solutions and services they can offer to meet market demands and address social needs,” Export Marketing Bureau (EMB) Director Senen Perlada said via Manila Bulletin. “We look forward to seeing our startups grabbing the attention of more mentors and investors as we promote them in the world market.”