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Country Report

Philippines Flag Consumer Lending in the Philippines

| Pages: 13

Price: US$1,900

About this Report

EXECUTIVE SUMMARY

Consumer lending continues to thrive amidst upbeat economy

The Philippine economy recorded a nearly 8% GDP improvement in the first quarter of 2013. This growth can be attributed to a steady inflow of remittances from overseas Filipino workers, upbeat consumer and business sentiment, the strong performances of the manufacturing and construction sectors, and continuous government and consumer spending. With much optimism, Filipinos from various social classes were enticed to take out loans to assist them in purchasing their first homes and vehicles, upgrading their existing dwellings and cars, and, for some, pursuing higher education. As a result, consumer lending experienced a robust performance in 2013.

Slight easing in lending standards attracts more Filipinos to borrow

There was a slight easing in lending standards because of improvements in borrower profiles and greater competition among various financial service providers. Mainstream lending institutions, in particular, further declined their interest rates and lowered minimum salary requirements for some of their consumer credit products to broaden their consumer market base and entice more Filipinos to take out loans. Despite the ease of borrowing money, banks closely monitored payments to minimise the occurrence of bad debts and decrease the percentage of non-performing loans.

Mainstream financial service providers remain the preferred lenders

Mainstream financial service providers continued to dominate the market, further increasing their shares in 2013. Domestic universal and commercial banks such as Bank of the Philippine Islands, Banco de Oro, Landbank and Metrobank remained major lenders, although more thrift and rural banks are expanding their businesses in consumer lending. Many Filipinos continued to prefer these traditional players due to their broad selection of products and their attractive interest rates, benefits and promotions.

Microcredit offers low-income households more borrowing alternatives

Together with the government, rural banks and microfinance institutions continued to educate Filipinos on microcredit. In the Philippines, micro loans are mainly facilitated through mobile phones because of the high ownership and efficiency in gravitating impoverished households towards the formal financial system by borrowing from mainstream lenders. The rapid expansion of BPI Globe BanKO – the country’s first mobile-based microfinance savings bank – across the country is a testament of success in terms of providing better credit options to the unbanked population, who often borrow from usurers that charge unreasonably high interest rates.

Strong performance is expected to continue in the forecast period

Consumer lending is projected to record double-digit constant value growth in terms of gross lending over the forecast period. Aside from the optimistic outlook of the Philippine economy, the continuous inflow of remittances from overseas Filipino workers, the increasing disposable incomes of the middle class and better financing packages from mainstream lenders are the other macro- and microeconomic factors that are expected to have a significant impact on the industry’s performance between 2013 and 2018.

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Overview

Discover the latest market trends and uncover sources of future market growth for the Consumer Lending industry in Philippines with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Consumer Lending industry in Philippines, our research will save you time and money while empowering you to make informed, profitable decisions.

The Consumer Lending in Philippines market research report includes:

  • Analysis of key supply-side and demand trends
  • Historic volumes and values
  • Five year forecasts of market trends and market growth  
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Consumer Lending in Philippines?
  • What are the major trends set to impact the market in Philippines?
  • What capacity for consumer debt still exists in the market?
  • What’s the state of credit quality in the market?
  • Has the economic downturn reset the lender competitive landscape?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

Euromonitor’s industry reports, including Consumer Lending in Philippines, originate from our database within our Consumer Finance market share and market size database, Passport, a platform which analyses Consumer Finance in 46 countries and globally.

Table of Contents

Consumer Lending in the Philippines - Industry Overview

EXECUTIVE SUMMARY

Consumer lending continues to thrive amidst upbeat economy

Slight easing in lending standards attracts more Filipinos to borrow

Mainstream financial service providers remain the preferred lenders

Microcredit offers low-income households more borrowing alternatives

Strong performance is expected to continue in the forecast period

KEY TRENDS AND DEVELOPMENTS

Low interest rates stimulate demand for mortgages/housing

State-run institutions support the performance of education lending

Greater acceptance of microcredit among low-income Filipinos

MARKET DATA

  • Table 1 Consumer Lending: Outstanding Balance by Category: Value 2008-2013
  • Table 2 Consumer Lending: Outstanding Balance by Category: % Value Growth 2008-2013
  • Table 3 Consumer Lending: Gross Lending by Category: Value 2008-2013
  • Table 4 Consumer Lending: Gross Lending by Category: % Value Growth 2008-2013
  • Table 5 Consumer Lending: Non-performing Loans Outstanding Balance: % Value 2008-2013
  • Table 6 Mortgages/Housing: Non-performing Loans Outstanding Balance: % Value 2008-2013
  • Table 7 Consumer Credit: Non-performing Loans Outstanding Balance: % Value 2008-2013
  • Table 8 Card Lending: Non-performing Loans Outstanding Balance: % Value 2008-2013
  • Table 9 Forecast Consumer Lending: Outstanding Balance by Category: Value 2013-2018
  • Table 10 Forecast Consumer Lending: Outstanding Balance by Category: % Value Growth 2013-2018
  • Table 11 Forecast Consumer Lending: Gross Lending by Category: Value 2013-2018
  • Table 12 Forecast Consumer Lending: Gross Lending by Category: % Value Growth 2013-2018

DEFINITIONS

SOURCES

  • Summary 1 Research Sources

Consumer Credit in the Philippines - Category Analysis

HEADLINES

TRENDS

COMPETITIVE LANDSCAPE

PROSPECTS

CATEGORY DATA

  • Table 13 Consumer Credit: Outstanding Balance by Category: Value 2008-2013
  • Table 14 Consumer Credit: Outstanding Balance by Category: % Value Growth 2008-2013
  • Table 15 Consumer Credit: Gross Lending by Category: Value 2008-2013
  • Table 16 Consumer Credit: Gross Lending by Category: % Value Growth 2008-2013
  • Table 17 Forecast Consumer Credit: Outstanding Balance by Category: Value 2013-2018
  • Table 18 Forecast Consumer Credit: Outstanding Balance by Category: % Value Growth 2013-2018
  • Table 19 Forecast Consumer Credit: Gross Lending by Category: Value 2013-2018
  • Table 20 Forecast Consumer Credit: Gross Lending by Category: % Value Growth 2013-2018

Segmentation

This market research report includes the following:

  • Consumer Finance
    • Consumer Lending
      • Consumer Credit
        • Card Lending
        • Auto Lending
        • Durables Lending
        • Education Lending
        • Home Lending
        • Other Personal Lending
      • Mortgages/Housing

Statistics Included

For each category and subcategory you will receive the following data in Excel format:

From Passport

  • Market Sizes
  • Consumer Credit by Type
  • Other Personal Lending by Type
  • Non-performing vs Others loans

Market size details:

  • Outstanding balance % growth
  • Outstanding balance local currency, USD, EUR, GBP, CHF, JPY
  • Outstanding balance per capita local currency, USD, EUR, GBP, CHF, JPY
  • Gross lending % growth
  • Gross lending local currency, USD, EUR, GBP, CHF, JPY
  • Gross lending per capita local currency, USD, EUR, GBP, CHF, JPY

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