Gradual Revolution in Digital Banking in the Philippines

The history of digital banking in the Philippines is relatively recent, reflecting global trends in the adoption of digital technologies in the financial sector.  Here's an overview of its evolution:

1.  Early Adoption of Electronic Banking:  The Philippines saw the initial adoption of electronic banking services in the late 1990s and early 2000s.  This period marked the introduction of Automated Teller Machines (ATMs), which allowed customers to perform basic banking transactions such as withdrawals and balance inquiries outside of traditional bank branches.

2.  Introduction of Online Banking: In the early 2000s, Philippine banks began offering online banking services, allowing customers to access their accounts, transfer funds pay bills, and perform other transactions through internet-based platforms.  This marked a significant shift towards digitalization in the banking sector, providing customers with greater convenience and accessibility to banking services. 

3.  Mobile Banking Revolution: The proliferation of mobile phones and smartphones in the Philippines led to the emergence of mobile banking solutions in the mid-2000s.  Banks started offering mobile apps and SMS-based banking services, enabling customers to conduct banking transactions directly from their mobile devices.  Mobile banking proved to be particularly beneficial in reaching unbanked and underserved populations in remote areas.

4.  Expansion of Digital Payment Systems: The rise of digital payment systems further accelerated the adoption of digital banking in the Philippines. Services such as electronic fund transfers (eg. Instapay and PESONet), mobile wallets (e.g. Gcash and Maya), and online gateways became increasingly popular, allowing consumers to make payments, transfers, and purchases electronically. 

5.  Regulatory Support and Innovation: The Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, has been proactive in promoting financial inclusion and innovation in the banking sector.  The BSP introduced regulations and guidelines to support the development of digital banking infrastructure and ensure the security and integrity of digital financial transactions.

6. Partnerships and Collaborations: Philippine banks have forged partnerships with fintech companies, telecommunication firms, and other stakeholders to enhance their digital banking offerings.  These collaborations have led to the development of innovative financial products and services, such as digital lending, robo-advisory platforms, and blockchain-based solutions.

7. COVID-19 Pandemic Acceleration: The COVID-19 pandemic further accelerated the adoption of  digital banking in the Philippines as social distancing measures and lockdowns prompted consumers to rely more on digital channels for their banking needs.  Banks expanded their digital capabilities and introduced new features to cater to the growing demand for contactless banking solutions.

Overall, the history of digital banking in the Philippines reflects a gradual evolution driven by technological advancements, changing consumer preferences, regulatory support, and industry collaboration.  As digitalization continues to reshape the banking landscape, Philippine banks are poised to further innovate and expand their digital offerings to meet the evolving needs of customers in the digital age.

Video courtesy of Pexel.

Commonly Known Facts on the HISTORY OF BANKING IN THE PHILIPPINES

BPI Escolta Sta. Cruz branch at Plaza Santa Cruz, Manila which occupies the Don Roman Santos Building, former head office of Prudential Bank

El Banco Español-Filipino, 10 pesos bank note (1896)

Photo source: Wikipedia

https://en.m.wikipedia.org/wiki/Bank_of_the_Philippine_Islands?fbclid=IwAR2EIR-QXNXHlNtf5pUzfOcLBo5_U1HXKFi1F3YmfBZhCvSIWwKRMnbEfrA

The history of banking in the Philippines is a rich tapestry that spans several centuries, influenced by various colonial powers, economic reforms, and technological advancements. Here's a brief overview:

1.  Pre-Colonial Period: Before the arrival of Spanish colonizers in the 16th century, the Philippines had rudimentary forms of trade and commerce conducted through barter systems and local currencies like gold, pearls, and even cocoa beans. However, there was no formal banking system in place.

2. Spanish Colonial Era (1565-1898): With the arrival of Spanish colonizers, the Philippines became part of the global trade network under the Spanish Empire. The Spanish established the first formal banking institution in the Philippines in 1828 with the founding of the Banco Español-Filipino de Isabel II (now known as Bank of the Philippine Islands or BPI), which primarily served Spanish interests.

3.  American Colonial Period (1898-1946): Following the Spanish-American War, the United States gained control of the Philippines. During this period, American-style banking systems were introduced, leading to the establishment of the Philippine National Bank (PNB) in 1916 as a government-owned bank to promote agricultural and rural development.

4. Post-World War II Era and Independence (1946-1960s): After World War II and the granting of independence to the Philippines in 1946, the banking sector underwent significant reforms and expansions. Private commercial banks emerged alongside government-owned banks, contributing to the growth of the financial sector.

5. Martial Law Period (1970s-1980s): The declaration of martial law in 1972 by President Ferdinand Marcos had a significant impact on the banking sector. The government imposed strict regulations on banking activities, leading to the consolidation of banks and the establishment of state-controlled financial institutions like the Development Bank of the Philippines (DBP) and the Land Bank of the Philippines (LandBank).

6. Liberalization and Modernization (1990s-present): The Philippines underwent economic liberalization in the 1990s, leading to the entry of foreign banks and the adoption of more liberal banking policies. This period saw the proliferation of various banking products and services, including electronic banking, online banking, and mobile banking. The Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, plays a crucial role in regulating and supervising the banking sector to ensure stability and promote financial inclusion.

Throughout its history, the banking sector in the Philippines has evolved to meet the changing needs of the economy and society, from its colonial origins to its modern, technology-driven landscape. Today, the Philippines has a diverse banking industry with numerous commercial banks, thrift banks, rural banks, and cooperative banks serving the financial needs of businesses and individuals across the country.

#historyofbankinginthePhilippines

#firstbankinthePhilippines

How to Avoid Collection Agencies from Harassing you!

found this on TikTok

credit to accruecreditsolutions

https://www.tiktok.com/@accruecreditsolutions/video/7150447979327966506?is_from_webapp=1&sender_device=pc

#debtcollection

#collectionharassment

CMAP Credit and Collection Seminars scheduled Feb to June 2023

Contact us for more details. 

    +63 0917 8876383 (Viber/WhatsApp) - Theresa De Leon 

    ayette.deleon@gmail.com 

    FB Page: https://www.facebook.com/CreditandCollectionServices

If not a CMAP Member, please contact us directly so we can properly endorse you to the CMAP Secretariat.

Evaluation Process to Determine Trade Credit Terms and Amount - new or renewal

All depends on your risk appetite but as a general rule, determine your client's

1) loan purpose - to bridge cashflow reqts? expansion? increase in production? remedial/restructuring?

2) financial capacity- cashflow, operating cycle, liquidity, d/e, activity ratios

3) existing customers, suppliers, and providers do trade checks. Determine financial info like the volume of txns, credit terms, and repayment performance

4) credit track record based on their repayment history with your company if any. Conduct BI and CI!

5) updated KYC info -to send notices/ demand letters in case of default, validate by CI

6) assets to attach especially if your exposure is in millions of Php

#businesscredit
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#delinquencymanagement
#accountsreceivablesmanagement
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#zerosmallclaims
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Credit and Collection Management Services

Do you need help with your mounting bad debts?

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Achieve lower than industry NPL or past due ratio.

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 Hi Mr./Ms. Entrepreneur/Businessman/Businesswoman,

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Are you tired of pushing your team to exert better collection efforts and still do not get your desired results?

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Our consultancy or retainers service will relieve you from thinking of a customized collection strategy or even choosing the best legal approach concerning collection on a per account or on a per-client basis.  That’s not all! If you’re thinking that your collection team needs some boost or training on advanced collection strategies, our in-house customized credit and collection training program is guaranteed to equip every team member with effective collection techniques.  If at all, we can also be your third-party collection agency on a no-cure-no-pay basis.

We are passionate about helping businesses improve their cash flow by recovering bad debts or aging accounts/loan receivables. For the past 30 years, we've been engaging with companies of different industries as Credit Management Professionals; firms who engaged our collection services are financial institutions, services, real estate, healthcare services manufacturing, and trading firms. We are currently the chosen subject matter experts and have had regular speaking engagements on various Credit and Collection related topics for the Credit Management Association of the Philippines (CMAP) and the Rural Bank Association of the Philippines (RBAP)  for over five (5).

We can provide you with a detailed resume to show the track record of our key personnel and a list of clients we served upon your request. Moreover, we will be able to tell you about what we do and what we can specifically offer to address your credit and collection concerns in a meeting at your most convenient date and time. You may reach us at the contact information below.

Here’s to your success!!!

 

Theresa De Leon

+63 0917 8876383 (WhatsApp/Viber)

ayette.deleon@gmail.com

1260 Cardona St. Poblacion, Makati City

 

Protect yourselves from Shaming; check SEC List of Finance Companies and Lending Companies in the Philippines

Juan dela Cruz, a minimum wage -earner hardly makes both ends meet. He usually resorts to lending for his children's tuition fee or unexpected expenses. At times, he has no choice but to borrow from unscrupulous lenders, offering very high interest rates.

Recently, we've heard of a new collection scheme by these lenders  called "SHAMING."  Conveniently thru an APP, one can already borrow money so quickly. Little did we know, this APP hacks into the borrowers phone directory, and when these lenders could not collect, they send a message to all the numbers, announcing to the whole world, that their friend/relative could not pay.

We should all be careful not to fall into this trap.  Let us exercise due diligence and check from whom we are borrowing.  Know if they are registered with the Security and Exchange Commission (SEC). In  SEC's website, they have provided the official list of Financing and Lending Companies.  Check out this SEC May 31, 2022 url link below :

SEC List of Financing Companies, May 31, 2022

SEC List of Lending Companies, May 31, 2022

SECList of Revoked and Suspended Lending Companies, May 31, 2022