Of the 498 banks and 2000 odd non-banking financial institutions in the Philippines, over 92% of the lending-related transactions by value were held by the 43 odd universal and commercial banks (U/KBs) banks. Traditionally the financial institutions in the Asia Pacific (APAC) region, including Philippines, have looked upon lending as just another service along with treasury and forex services, and never needed a dedicated lending technology platform.
Pennant recently undertook a study to understand how the changing market dynamics including fast-evolving consumer expectations, digitalisation trends, and regulatory compliance requirements are impacting the lending operations of banks and financial institutions in the Philippines. For the study, we surveyed executives from various financial organisations including universal banks, mid-sized banks, and fintechs within the Philippines to assess their perspectives and priorities.
Our findings from the study brought interesting insights into how financial institutions are harnessing the power of digital technologies to seize market opportunities and optimise their lending operations.