Pinoys prefer e-wallets more than bank accounts — Moody’s

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Photo from: The Philippine Star

By The Philippine Star

Financial technology (fintech) companies continue to threaten Philippine banks that remain slow in developing digital services, Moody’s Investors Services said in a report.

The debt watcher said the penetration of mobile wallets in the Philippines has surpassed that of bank accounts, adding that the number of debit cards per 1,000 adults has decreased 22 percent since 2015.

“Slow development of digital services by Philippine banks weakens their growth prospects,” Moody’s said.

It said the Philippines would continue to benefit from the growth in working-age population due to its favorable demographics, supportive operating environment for retail loan growth and social stability.

“While the combination of these factors is similarly promising in the Philippines, banks in this country remain slow in developing digital services, leaving room for growing fintech companies to threaten banks’ position in key areas of the retail segment,” it added.

The credit rating agency said India and Indonesia, the world’s second and fourth most populated countries, would see their work force grow a further 17 percent and 14 percent, respectively, in the next two decades.

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