Consumer Finance in the Philippines
Euromonitor International's Consumer Finance in the Philippines report establishes the size and structure of the market for ATMs, credit cards, debit cards, store cards and smart cards. It looks at key players in the market (issuers and operators), number of cards in circulation, numbers transactions and value of transactions. It offers strategic analysis of sector forecasts and trends to watch.
Buy online to access strategic market analysis and an interactive statistical database of value and volume for retail and internet transactions, number of cards in circulation and company brand shares.
Tables: 150 | Publication date: Aug 2009
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Consumer lending; Financial cards and payments
Executive summary
Declining financial cards growth due to economic slowdown
Growth in the volume and value of financial cards declined in 2008 from the previous year, due to higher inflation and the impact of the US recession. With rising fuel and commodity prices as well as lower employment growth, consumers were forced to decrease their discretionary spending. Nevertheless, positive growth was still registered primarily due to the strong Overseas Filipino Workers (OFW) remittances, as well as the aggressive strategies of financial institutions in marketing their respective financial card products.
Emerging popularity of pre-paid cards
Pre-paid cards has posted the strongest volume and value growth among the financial cards. As consumers veer away from cash transactions each year, more and more are shifting to financial cards. The use of pre-paid cards has particularly appealed to the unbanked masses, consumers who are not eligible to have a credit or charge card and for people who simply prefer debt-free spending. Pre-paid cards’ popular use is to channel OFW remittance flows.
BDO assumes market leadership in financial cards
BDO of SM Investments Corporation assumed market leadership in financial cards as its recent merger with Equitable PCI Bank was accompanied by the latter’s absorption of its credit card subsidiary, the Equitable Card Network. For the past couple of years, Equitable Card Network was the biggest credit card issuer and acquirer in the country. Apart from this development, BDO moved to acquire the American Express business in the Philippines in an effort to expand into the high-end consumer market. These developments plus the aggressive efforts of BDO to strengthen its foothold in the financial cards industry have resulted in its being the number one issuer and acquirer of financial cards throughout the review period.
Card industry seizes m-commerce opportunities
Financial institutions, in their desire to develop innovative products and increase their consumer bases, are now integrating m-commerce into their products and services. With the majority of Filipinos owning mobile phones and the affordability associated with text messaging, mobile phone usage has now expanded from mere communication to transactions and services such as fund transfer, remittances, bills payment, payroll services, among others. M-commerce fits well with card usage, as cards are still needed for most of these transactions.
Measures to combat fraud increases credit card usage
With the bulk of card fraud committed against credit cards, their use and growth have been curbed. However, recent measures to combat fraud, such as the credit card industry association’s establishment of a database of suspected fraudsters, government’s creation of an anti-fraud task force, merchants’ renewed cooperation on combating fraud and banks’ creation of internal risk management units as well as migration to EMV chip technology, have eased fears and hesitation of existing and potential cardholders, thereby increasing their usage of credit cards.
Table of contents
CONSUMER FINANCE IN THE PHILIPPINES : MARKET INSIGHT
EXECUTIVE SUMMARY
Declining financial cards growth due to economic slowdown
Emerging popularity of pre-paid cards
BDO assumes market leadership in financial cards
Card industry seizes m-commerce opportunities
Measures to combat fraud increases credit card usage
KEY TRENDS AND DEVELOPMENTS
Economic slowdown curbs growth in financial cards industry
OFW remittances gradually alter the economy
Mobile phone payments gaining acceptance
Towards cashless, credit-free transactions
Integrated effort to combat card fraud increases credit card usage
MARKET INDICATORS
Table 1 Number of POS Terminals 2004-2008
Table 2 Number of ATMs 2004-2008
Table 3 Disposable Income 2003-2008
Table 4 Value Lost to Fraud 2003-2008
Table 5 Card Expenditure by Location 2008
Table 6 Card Expenditure by Sector 2008
Table 7 Financial Cards in Circulation by Type: % Number of Cards 2004-2008
Table 8 Domestic versus Foreign Spend 2008
MARKET DATA
Table 9 Consumer Payments: Value 2003-2008
Table 10 Financial Cards: Number of Cards in Circulation 2003-2008
Table 11 Financial Cards Transactions: Value 2003-2008
Table 12 Financial Cards: Number of Transactions 2003-2008
Table 13 Financial Cards: Number of Accounts 2003-2008
Table 14 Financial Cards: Number of Cards by Issuer 2003-2007
Table 15 Financial Cards: Number of Cards by Operator 2003-2007
Table 16 Financial Cards: Card Payment Transaction Value by Operator 2003-2007
Table 17 Financial Cards: Card Payment Transactions by Acquirer 2003-2007
Table 18 Consumer Payments Forecast: Value 2008-2013
Table 19 Financial Cards Forecast: Number of Cards in Circulation 2008-2013
Table 20 Financial Cards Forecast: Value 2008-2013
Table 21 Financial Cards Forecast: Number of Transactions 2008-2013
Table 22 Financial Cards Forecast: Number of Accounts 2008-2013
DEFINITIONS
Summary 1 Research Sources
CONSUMER LENDING IN THE PHILIPPINES
EXECUTIVE SUMMARY
Declining consumer credit growth due to high interest rates
Auto lending the fastest growing sector
OFWs growing demand for loans
Banks remain the major source of credit
Pawn shops an emerging source of small credit
KEY TRENDS AND DEVELOPMENTS
Unfavourable macroeconomic conditions drive up interest rates
OFWs’ inelastic demand for loan facilities
Pawn shops increase in popularity among small borrowers
Central Bank regulation encourages lending to the property sector
Projected Boom in Philippine Real Estate spurs housing loans
MARKET DATA
Table 23 Consumer Lending By Sector: Outstanding Balance: Value 2003-2008
Table 24 Consumer Lending By Sector: Outstanding Balance: % Value Growth 2003-2008
Table 25 Consumer Lending By Sector: Gross Lending: Value 2003-2008
Table 26 Consumer Lending By Sector: Gross Lending: % Value Growth 2003-2008
Table 27 Consumer Lending: Non-performing vs Other Loans 2003-2008
Table 28 Mortgages/Housing: Non-performing vs Other Loans 2003-2008
Table 29 Consumer Credit: Non-performing vs Other Loans 2003-2008
Table 30 Forecast Consumer Lending By Sector: Outstanding Balance: Value 2008-2013
Table 31 Forecast Consumer Lending By Sector: Outstanding Balance: % Value Growth 2008-2013
Table 32 Forecast Consumer Lending By Sector: Gross Lending: Value 2008-2013
Table 33 Forecast Consumer Lending By Sector: Gross Lending: % Value Growth 2008-2013
DEFINITIONS
Summary 2 Research Sources
LOCAL COMPANY PROFILES - PHILIPPINES
BANCO DE ORO UNIVERSAL BANK - CONSUMER FINANCE - PHILIPPINES
STRATEGIC DIRECTION
KEY FACTS
Summary 3 Banco de Oro Unibank, Inc. (BDO): Key Facts
Summary 4 Banco de Oro Unibank, Inc. (BDO): Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 5 Banco de Oro Unibank, Inc (BDO).: Competitive Position 2007
BANK OF THE PHILIPPINE ISLANDS - BPI - CONSUMER FINANCE - PHILIPPINES
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Bank of the Philippine Islands: Key Facts
Summary 7 Bank of the Philippine Islands: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 8 Bank of the Philippine Islands: Competitive Position 2007
LAND BANK OF THE PHILIPPINES - LBP - CONSUMER FINANCE - PHILIPPINES
STRATEGIC DIRECTION
KEY FACTS
Summary 9 Land Bank of the Philippines: Key Facts
Summary 10 Land Bank of the Philippines: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 11 Land Bank of the Philippines: Competitive Position 2007
METROPOLITAN BANK & TRUST CO - METROBANK - MBTC - CONSUMER FINANCE - PHILIPPINES
STRATEGIC DIRECTION
KEY FACTS
Summary 12 Metropolitan Bank & Trust Company: Key Facts
Summary 13 Metropolitan Bank & Trust Company: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 14 Metropolitan Bank & Trust Company: Competitive Position 2007
SECURITY BANK CORP - CONSUMER FINANCE - PHILIPPINES
STRATEGIC DIRECTION
KEY FACTS
Summary 15 Security Bank Corp: Key Facts
Summary 16 Security Bank Corp: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 17 Security Bank Corp.: Competitive Position 2007
ATM TRANSACTIONS IN THE PHILIPPINES
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 34 ATM Cards Sector Performance: 2003-2008
Table 35 ATM Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 36 ATM Cards Sector Performance: % Growth 2003-2008
Table 37 ATM Cards in Circulation Sector Performance: % Growth 2003-2008
Table 38 ATM Cards Forecast Sector Performance: 2008-2013
Table 39 ATM Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 40 ATM Cards Forecast Sector Performance: % Growth 2008-2013
Table 41 ATM Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
DEBIT TRANSACTIONS IN THE PHILIPPINES
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 42 Debit Cards Sector Performance: 2003-2008
Table 43 Debit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 44 Debit Cards Sector Performance: % Growth 2003-2008
Table 45 Debit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 46 Debit Cards: Number of Cards by Issuer 2003-2007
Table 47 Debit Cards: Number of Cards by Operator 2003-2007
Table 48 Debit Cards Transactions by Acquirer 2003-2007
Table 49 Debit Cards Payment Transaction Value by Operator 2003-2007
Table 50 Debit Cards Forecast Sector Performance: 2008-2013
Table 51 Debit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 52 Debit Cards Forecast Sector Performance: % Growth 2008-2013
Table 53 Debit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
CREDIT CARD TRANSACTIONS IN THE PHILIPPINES
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 54 Credit Cards Sector Performance: 2003-2008
Table 55 Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 56 Credit Cards Sector Performance: % Growth 2003-2008
Table 57 Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 58 Personal Credit Cards Sector Performance: 2003-2008
Table 59 Personal Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 60 Personal Credit Cards Sector Performance: % Growth 2003-2008
Table 61 Personal Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 62 Commercial Credit Cards Sector Performance: 2003-2008
Table 63 Commercial Credit Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 64 Commercial Credit Cards Sector Performance: % Growth 2003-2008
Table 65 Commercial Credit Cards in Circulation Sector Performance: % Growth 2003-2008
Table 66 Credit Cards: Number of Cards by Issuer 2003-2007
Table 67 Credit Cards: Number of Cards by Operator 2003-2007
Table 68 Credit Cards Transactions by Acquirer 2003-2007
Table 69 Credit Cards Payment Transaction Value by Operator 2003-2007
Table 70 Personal Credit Cards Payment Transaction Value by Operator 2003-2007
Table 71 Commercial Credit Cards Payment Transaction Value by Operator 2003-2007
Table 72 Credit Cards Forecast Sector Performance: 2008-2013
Table 73 Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 74 Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 75 Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 76 Personal Credit Cards Forecast Sector Performance: 2008-2013
Table 77 Personal Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 78 Personal Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 79 Personal Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 80 Commercial Credit Cards Forecast Sector Performance: 2008-2013
Table 81 Commercial Credit Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 82 Commercial Credit Cards Forecast Sector Performance: % Growth 2008-2013
Table 83 Commercial Credit Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
CHARGE CARD TRANSACTIONS IN THE PHILIPPINES
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 84 Charge Cards Sector Performance: 2003-2008
Table 85 Charge Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 86 Charge Cards Sector Performance: % Growth 2003-2008
Table 87 Charge Cards in Circulation Sector Performance: % Growth 2003-2008
Table 88 Personal Charge Cards Sector Performance: 2003-2008
Table 89 Personal Charge Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 90 Personal Charge Cards Sector Performance: % Growth 2003-2008
Table 91 Personal Charge Cards in Circulation Sector Performance: % Growth 2003-2008
Table 92 Commercial Charge Cards Sector Performance: 2003-2008
Table 93 Commercial Charge Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 94 Commercial Charge Cards Sector Performance: % Growth 2003-2008
Table 95 Commercial Charge Cards in Circulation Sector Performance: % Growth 2003-2008
Table 96 Charge Cards: Number of Cards by Issuer 2003-2007
Table 97 Charge Cards: Number of Cards by Operator 2003-2007
Table 98 Charge Cards Transactions by Acquirer 2003-2007
Table 99 Charge Cards Payment Transaction Value by Operator 2003-2007
Table 100 Personal Charge Cards Transaction Value by Operator 2003-2007
Table 101 Commercial Charge Cards Payment Transaction Value by Operator 2003-2007
Table 102 Charge Cards Forecast Sector Performance: 2008-2013
Table 103 Charge Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 104 Charge Cards Forecast Sector Performance: % Growth 2008-2013
Table 105 Charge Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 106 Personal Charge Cards Forecast Sector Performance: 2008-2013
Table 107 Personal Charge Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 108 Personal Charge Cards Forecast Sector Performance: % Growth 2008-2013
Table 109 Personal Charge Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
Table 110 Commercial Charge Cards Forecast Sector Performance: 2008-2013
Table 111 Commercial Charge Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 112 Commercial Charge Cards Forecast Sector Performance: % Growth 2008-2013
Table 113 Commercial Charge Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
GENERAL PURPOSE PRE-PAID CARD TRANSACTIONS IN THE PHILIPPINES
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 114 General Purpose Pre-paid Cards Sector Performance: 2003-2008
Table 115 General Purpose Pre-paid Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 116 General Purpose Pre-paid Cards Sector Performance: % Growth 2003-2008
Table 117 General Purpose Pre-paid Cards in Circulation Sector Performance: % Growth 2003-2008
Table 118 General Purpose Pre-paid Cards by Type: % Number of Cards 2004-2008
Table 119 General Purpose Pre-paid Cards: Number of Cards by Operator 2003-2007
Table 120 General Purpose Pre-paid Cards Transaction Value by Operator 2003-2007
Table 121 General Purpose Pre-paid Cards Forecast Sector Performance: 2008-2013
Table 122 General Purpose Pre-paid Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 123 General Purpose Pre-paid Cards Forecast Sector Performance: % Growth 2008-2013
Table 124 General Purpose Pre-paid Cards in Circulation Forecast Sector Performance: % Growth 2008-2013
STORE CARD TRANSACTIONS IN THE PHILIPPINES
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 125 Store Cards Sector Performance: 2003-2008
Table 126 Store Cards Sector Performance: Number of Cards in Circulation 2003-2008
Table 127 Store Cards Sector Performance: % Growth 2003-2008
Table 128 Store Cards in Circulation Sector Performance: % Growth 2003-2008
Table 129 Store Cards: Number of Cards by Issuer 2003-2007
Table 130 Store Cards Forecast Sector Performance: 2008-2013
Table 131 Store Cards Forecast Sector Performance: Number of Cards in Circulation 2008-2013
Table 132 Store Cards Forecast Sector Performance: % Growth 2008-2013
Table 133 Store Cards in Circulation Forecast Sector Performance: % Growth 2008-2013