Retail, or "tingi" in the vernacular, is something that foreign banks would have a hard time competing vs the locals in the Philippine market. Local banks know the culture and spending habits of the Filipinos and they really capitalized on that. Giant multinational banks would rather focus on a few multi-million dollar transactions rather than multi-million small-time transactions that local banks are willing to serve. A good analogy I can think of is bottles vs sachets of shampoos. Since most Filipinos can't afford to buy in bottles, the sachet concept has become a huge success for manufacturing companies.
You seem to confuse yourself saying first these banks were on etail or "tingi" and at same time these same bank focus on few multi-million dollar transactions.
The Filipinos found local banks sufficient enough in terms of services and trustworthiness hence they found not much purpose to deal with foreign banks. That's the main reason. Secondly, others found transacting thru gcash, paymaya etc much simpler than obtaining the e-services of foreign banks.
So let's look at it from a foreigners point of view. The Philippines is a disaster of a place for any company to do business and ten times worse for a foreign company. Didn't it ever register with you just why the Philippines was always so low in the index of ease of doing business? The country is so amazingly inefficient in its regulations and services. I've tried 3 banks so far and the best I can do is laugh at how inept and incompetent they are. I experienced systematic corruption on my first visit before I'd got through customs and I see the last president amazingly took even lower the international perception of corruption. Doing business in the Philippines requires vast unprofitable stressful management. It's a complete pain in the arse. It has always been my opinion that the current anti-competitive environment suits powerful vested interest crime families for whom a nations poverty is a necessary factor in their protected dominance.
@@carusmike Philippines Banks are doing well, compared to Banks in other countries failed. Source: *WILL PHILIPPINE BANKS FAIL?* by *Rampver Financials*
@@davidarvingumazon5024 this is true. But is little reward for lack of inward investment by foreign companies. China loans should not be mistaken for investment. While the west is going to struggle as a result of over commitment by banks people have been earning in one hour here much more than the Philippines do on minimum wage in an 8 hour day, while many foreign imports cost more in the Philippines than in the west. I don't like to see the Philippines suffer from such incompetence but yes I will use it to my advantage. Bank stability due to lack of loans is useful. Lack of retail CBDC is also useful for the future. Which is quiet a certainty considering Filipino IT systems are so bad.
The Filipinos found a more convenient and faster service in handling finance needs.. I found out that the retail services of the Banks are now being efficiently done nationwide up to the rural areas by Money Transfer Companies as well as per Deliveries. Foreign Banks can not compete with this retail business because they can not open Offices all over the country. I was surprised last year to experience the G-Cash money transactions. DHL and LBC are also active in delivering money sent nationwide.
HSBC recently announced that it was selling all their retail business in the US market to local banks. Commercial business in US remains. Same is happening globally.
Their inability to compete with the local banks is one of the reason. For most Filipinos, banks with the most ATMs is convenient. How many ATMs of these two banks can you see in the Philippines?
It's NOT about the ATM Machines but Rather Our Government RECOMMENDS using LANDBANK to do its Transactions and that alone takes approximately close to 50% of the market since all teachers, Beneficiaries, government Employees, etc.. are bound to FORCIBLY use Landbank Despite Landbank has only 2 ATM machine Per Bank even though the LINE is 10 Kilometers long NO CHOICE.. Foreign Banks are competing on a small margin of customers so the reason of staying in the PH is USELESS on a BUSINESS Perspective.. FILIPINOS MINDSET and CULTURE is NEVER about Savings... Hence we only use banks for moving Money but SAVINGS is never or MAJORITY never thinks about... Government Plays a BIG ROLE into this Failure of Foreign Banks because Filipinos WOULD RATHER SAVE HARD cash than use a bank, Hence if a BANK stole money from your account it will take years to retrieve it Because GOVERNMENT DOES not penalize or go after banks when this scenarios happens which ALWAYS happens and the LAW IS ALWAYS FOR THE BANKS REGARDLESS OF THE SITUATION.. This INSTILL FEARS INTO EVERY FILIPINO into using a bank as savings....
Local banks know better the needs and wants of Filipinos when it comes to banking. They also know the spending mindset and habits of filipinos which made them execute or think of relevant services. With these, local banks attained annual growth.
I guess these foreign banking companies do not understand the consumer behavior of the Filipinos. Local banking institutions however, manage to penetrate more clients because they understand the need of Filipinos' banking products and services.
leaving a country where in your face corruption is a common practice, credit history monitoring is virtually non existent, and where bank savings is not a goal.. what do we expect?
Philippine banking has always been rather 'difficult'. That's similar to other SE Asian countries, along with S Korea and Japan. They still tend to be a 'cash based' market, and infrastructure isn't progressing as well as many businesses may have planned on. My guess would be the root cause of such international institutions pulling out would be due to the numerous restrictions and difficulties in expanding their market base. Electronic banking is still 'new' to such areas, and there's usually a run on all the ATMs on payday. Too often, those ATMs run dry before mid-day, if they work at all. Most end up sending themselves money through the various wire services, or end up standing in long lines, hoping to withdraw cash from a working ATM or a bank with funds. I know there's a practice of 'lenders', in the Philippines, who retain the debit cards of those who they loan funds to, and they will stand at an ATM and make a number of withdrawals for each such card. Not the greatest practice, but it's permitted. Having lived in Korea and Japan, I am aware that when paying rent, landlords strongly prefer cash as well. Same for paying for utilities.
Most countries in SEA utilities bill have online payment method and many banks employee lost their jobs as normal everyday task were automated, only human needed is when you want to restructure the loan or opening new account and this too can be done thru phone, ATM still exist for small drawing and cash deposit, most banks only have 10-20 customers to attend per day
Another unmentioned reason can be the constitutional limits to foreign ownership of estates and essential businesses, turning off foreign investments that these foreign banks mostly serve...
2:52 yeah.... starting a foreign business in the Philippines from a filipino perspective is pretty hard, for one, filipinos don't like new things....unless that business be it a bank, a drugstore and so on, has been verified by a family member or friend etc, they aren't going there, maybe to explore and test things out, but will eventually revert back to what they're used to, a new Japanese Mall opened up in BGC recently, and from my POV, the only way that Japanese Mall can survive ( not thrive, BUT SURVIVE ), is if it woos foreigners, filipinos already have SM, LCC, Sari Sari Stores, Palengkes and so on, the Local Competition will eat up any new competition. It's sad, yet cool for me as a Filipino, FILIPINO PRIDE BOISS 💪😎👌🇵🇭🇵🇭🇵🇭🇵🇭.
It is simply, foreign banks cannot compete with the local banks in reatil business. Although, many foreign banks are doing well in corporate banking and syndicate loan (PPPs). Perhaps the strategic plan is to partner or to take a significant stake of the local univeraal banks like Bank of Tokyo buying signifincant shares of Security Bank, Cathay Holdings buying shares of RCBC and others.
Both these banks have a mega presence in the USA. For 25 or so years the US Federal Reserve Bank has basically given unlimited under the table capital to major banks. While the banks have loved this, the reality is that it leads to extremely lazy business practices and an inability to compete when the free easy money goes away. Moreover, with all the easy money, they naturally expanded aggressively into foreign markets. I see the Citi bank moves especially as them simply having to downsize and concentrate on core operations now that they have to learn how to actually do real banking again in the absence of the Fed money spigot.
Cause foreign banks have much less branches, have higher maintaining balances and even have higher fees. So why open an account with a foreign bank when local banks have more branches and lower fees. They just don’t have market share and volume of local banks.
The reason they left is because these banks are in the know about a huge world financial reset that will happen in 2023. These smaller banks will be left with nothing as the world shifts to digital currencies.
Foreign Banks don't really have money to back it up, they only rely on digital money, Philippine pesos have gold to back their currency plus world wide overseas workers remittances are massive to support the country
They exit the country because of ferce competition. You should be very competitive if you will establish a business in Philippines. This is base in my own experience
Hmmm… where have you been for the last 6 years? Because definitely we never have had political instability at those times. Maybe it was a by-product of your own corrupted mind
It's either they didn't put an effort on building trust with future client or just giving them a bare minimum. When some local bank closes due to scandal/mismanagement. What can a foreign bank assurance that they dont go that way and the answer is the same,they leave the country
As everyone is already online, Citibank and ING need to focus on different market instead. We have lots of local banks that are sufficient in servicing us. However, the videos title is so alarming and kinda deceiving. Good thing you explained it accordingly
there are small local banks here in cebu and bohol that aren't that know but are popular among public employees coz they go there to borrow money... not to insult coz i am a public employee also but these small banks in our place know where to find sustainable customers that will feed their business and provide them financial needs.... my classmate is still working there.. after almost 20 years... and the said bank gives them a profit sharing every year (aside from other bonuses) ... for a "small bank" compared to BDO, metrobank, bpi to give a benefit like that is one indicator that the bank is doing well....
Because no one wants to have debts here. Its also hard to borrow money from the fkng banks and its easier to borrow from friends or family which we all have atleast a friend or a family member to borrow money from.
Because Maya Bank is the fastest growing Digital Bank in the Philippines. You can deposit for as low as 100 pesos only and you can put in the Time Deposit with High Interest Rate.
Filipino doesn't like expensive look like Citi and ING which establish 1 bank only. Filipino like sari-sari store that have massive building in the every municipality like other banks did.
As I always said, it is because the Philippines is blind in building his own energy source, it seems the high price hike of electricity and petrol is everyday , the reason why the Philippines is making it Les competitive to all form of bussiness,.
1. ING and Citibank lack physical presence. ING has no physical bank while Citibank only has few physical branches in very few major cities. I won't deposit my money on those kinds of banks because I can't rely on them when disasters strike. Philippines is prone to natural calamities like typhoons and earthquakes. When disaster strikes, electricity and telecommunications usually fall and stay down for a few days or weeks. Those banks that have lots of physical branches nationwide can still serve its customers even when major telecommunication and electrical lines are down. Cebuana Bank, a local microsavings bank, is even better than major banks when it comes to this type of situation because it almost has branches in all towns and cities nationwide thru its pawnshop arm. I personally experienced this Cebuana banking convenience during the aftermath of Typhoon Odette. ING was totally useless during those times, while Citibank, with its very limited number of branches, is next to being useless. 2. Citibank is more known for its credit card business. Most of us Filipinos are not fond of credit cards and bank loans. We borrow mostly from friends and relatives. 3. ING's online services are also offered by most major local banks. In fact, local banks offer more online services than ING. For example, I pay my personal and my employees' contributions to Pag-Ibig, SSS and PhilHealth through BPI's egov and UnionBank's OneHub platforms.
pH local bank are very competitor.and very stable in their financial guarantor that.a foreign bank fell difficulties in taking the trust as their clients plus there are so many local. major bank or minor/rural bank in the Philippines
The foreign banks are non-existent in the Philippines. They only serves in the highly urbanized areas in Metro Manila. Also, these banks only have a very branches if not only one, it is silly, they never had a concrete plan to penetrate the banking sectors. These banks does not compete with local banks that has been already established, because the local banks has massive branches across spread throughout the archipelago and are very familiar with the Filipinos. They are major banks in their own soil, and maybe they're multi-national banks, but when they dived in sa bansa, sisiw lang sila sa mga major banking firms sa Pilipinas, and that Filipinos are not eager to open an account from them if they don't offer what locals want that would justify to change accounts with a services that leave the dust sa mga major banking players sa bansa. Ito pa ang hindi naiibigay ng mga foreign banks, they came to make a quick bucks and not to become a major player in the banking industry. This is the big problem with the foreign banks.
pano ka naman gaganahan magbangko katakot takot na requirements at kung mag interview kulang na lang sabihin mukha naman dukha magbangko pa feeling lang kaya mas mainam pa talaga mag impok ka na lang sa sariling bahay kaysa sa bangko
Nonsense, loyalty? Any consumer, would patronize any business, banking for that matter, foreign or not, as long as their needs are met as a consumer. USING WORDS LIKE, " LOYALTY" IN THIS CONTEXT, IS HIGHLY RIDICULOUS.
@@liabheferrole1766 what's the problem with the word loyalty? All companies has ability to deliver everything to their consumer,but every consumer have the right to whom to be loyal with. is loyalty ridiculous?
@@joserogercahilig8967 WHEN YOU SAY THAT, THAT IS THE REASON. BECAUSE OF LOYALTY. APPARENTLY, MEDYO MAHINA ANG PANG INTINDI MO. DAHIL DAW SA LOYALTY?? KALOKOHAN!¡!
@@liabheferrole1766 I am entitled to my own opinion,at yan ang aking pananaw. All the while you thought that you are full of wisdom, but the way you dealt with my comments,surfaces that you want to view my comment as obsolete. its okay no problem.
@@joserogercahilig8967 You have your opinion. I have mine. THE IMPORTANT THING IS, THAT YOU TRY TO LEARN, SEE AND UNDERSTAND, IF YOU ARE MISTAKEN, IN YOUR USE OF WORDS. UN ANG POINT. MEANING, YOU HAVE TO GO BACK TO WHAT YOU SAID, AND ANALYZE IT. AKO GANON AKO. OPEN MINDED. IF SOMEONE CRITICIZES ME. I WILL ANALYZE FIRST, BAKA TAMA SILA. THAT IS HOW, YOU IMPROVE THIS COUNTRY, ALSO.
Fintech companies backed up by the emerging blockchain technology are slowly killing traditional banks, not just in PH but in the whole world. Those fiat currencies supporting those traditional banks will soon be gone too as well ..
I remember former First Lady Imelda Marcos, said that we have no bank that can transact a HUGE amount in the Philippines I hope that leaving these foreign banks that Philippines will benefit , as Philippines bought it. Yahuah’s plan is great 🙏🙏🙏❤️❤️❤️
Because THIS GCASH TO MUCH SCAMMER... SPECIALLY THIS GCASH IT SELF IF SCAMMER... They just close your account without any reason!! If you ask the GCASH APOS HELPCENTER they just give you ticket!! And NO RESULT will come!!
they focus too much on the ads and promos. ING used to give 100php top-up/deposit to anyone who can refer. If this is the model then they will really fail.
