PH Banks Snub Growing Middle Class Market

The Philippines has been identified as one of the world’s largest greenfield markets for digital financial services— but local banks are not rising up to attain its true potential.

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Banking penetration rate remains among the lowest in the region. Traditional financial institutions focus heavily on commercial lending, leaving a rapidly growing, increasingly affluent, and digitally savvy potential customer base with little access to financial services that meet their needs, consulting firm McKinsey & Company said in a report.

“Traditional banks remain focused on wholesale banking and have been slow to reach new customers outside their existing client base. Rural areas are home to nearly half the population, yet rural households are especially underserved, and many have little or no access to brick-and-mortar banking infrastructure,” wrote McKinsey senior partner Guillaume de Gantès; associate partner Hernan Gerson; and Manila partner Kristine