As Philippine digital banks aim to capitalize on the country's large underserved population, risks associated with lending to the unbanked and underbanked segments are proving to be a substantial challenge, Fitch Ratings said.
In a report, the debt watcher said that the Philippines, just like other markets in the Asia Pacific region, has lower credit and bank penetration than developed markets.
Digital lenders can then focus on growing their loan books and optimize their balance sheets by targeting individuals with limited or no credit histories.
"However, we believe that the potential pool of bankable customers may be constrained by their significantly lower income and/or very limited credit or payment history that make it challenging for banks to price loans adequately," Fitch Ratings said. The report revealed that the non-performing loan ratio for Philippine digital banks worsened to 14.1 percent in July 2024 from 5.9 percent in December 2022.
هذه القصة مأخوذة من طبعة October 13, 2024 من The Philippine Star.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة October 13, 2024 من The Philippine Star.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
MQuest Artists Agency offers acting, dance, voice workshops
Those who will participate in the MQuest Artists Agency (MQAA) acting, dance, and voice public workshops will get the chance to be discovered and have exclusive access to auditions and the opportunity to join the MQAA talent pool.
SAM VERZOSA ON GIRLFRIEND RHIAN RAMOS: SHE'S MY LUCKY CHARM
SAM VERZOSA DESCRIBED girlfriend Rhian Ramos his \"lucky charm\" after receiving back-to-back awards this month.
The charmed life of Happy Ongpauco-Tiu
I was recently invited to the birthday lunch of PR guru Susan Joven at Tsokolateria-Pamana restaurant in the new GH (Greenhills) Mall.
FEELING RIZAL HOVER 'IN THE AIR' TONIGHT IN HEIDELBERG
HEIDELBERG, Germany—They say history is not just something we read or study; it is something we walk through. All our movements and moments become, in a sense, historic (with the magnitude of their historicity being relative, of course). History inhabits the air of cities—most especially old, grizzled ones such as Heidelberg in Germany with the hum and thrum of its cobblestones, where we recently echoed the footfalls not only of countless German figures who have shaped history but also of one Dr. Jose Rizal.
New Phl CPF finalized early next year – WB
The World Bank expects to finalize by early next year its new country partnership framework (CPF) that will outline programs to be supported in the Philippines for 2025 until 2028.
Focus on exports
Federation of Filipino Chinese Chamber of Commerce and Industry Inc. (FFCCCII) president Cecilio Pedro hopes that government officials would focus on increasing the country's self-sufficiency next year in the face of possible tariffs threats from the United States with the expected takeover of the government by president-elect Donald Trump.
ERC: EPIRA amendments could bring down power costs
The proposed changes to the Electric Power Industry Reform Act (EPIRA) could deliver the long-awaited solution to soaring electricity costs, according to the country's power regulator.
The bigger problems
\"In the larger scheme of things, Sara is unimportant. So please do not file impeachment complaints. It will only distract us from the work of governance which is to improve the lot of all Filipinos.\"
Phl MSMEs among target beneficiaries of ADB, Mastercard financing in Asia-Pacific
Micro, small and medium enterprises (MSMEs) in the Philippines are among the initial target beneficiaries of financing from the Asian Development Bank (ADB) and Mastercard to support small businesses in Asia-Pacific.
Metro Retail revisiting network expansion plan
Metro Retail Stores Group Inc., the listed retail company of the Gaisano Group, is revisiting its network expansion plan and strategies to adapt to the changing preferences of Filipino consumers.
