菲律宾金融格局迎接挑战，释放机遇

The Philippines’ Financial Landscape Emerging banking sector opportunitiesfor unmet and rising financial needs The development of financial landscape in thePhilippines, and the linkages between thefinancial sector and the real economy4 Business opportunities in the financial sector12 Challenges facing players in the Philippinefinancial system14 KrungsriResearch view17 References18 Unlessexplicitlystatedotherwise,thispublicationandallmaterialthereinisunder the copyright ofKrungsriResearch. As such, the reuse, reproduction, oralteration of this text or any part thereof is absolutely prohibited without priorwrittenconsent.Thisreportdrawsonawiderangeofwell-establishedandtrustworthysources,butKrungsriResearchcanmakenoguaranteeoftheabsolute veracity of the material cited. Moreover,KrungsriResearch will not beheld responsible for any losses that may occur either directly or indirectly fromany use towhich this reportorthe datacontained therein maybe put.Theinformation,opinions,andjudgementsexpressedinthisreportarethoseofKrungsriResearch, but this publication does not necessarily reflect the opinionsof Bank ofAyudhyaPublic Company Limited or of any other companies withinthe same commercial group. This report is an accurate reflection of the thinkingand opinions ofKrungsriResearch as of the day of publication, but we reservethe right to change those opinions without prior notice. For research subscription, contactkrungsri.research@krungsri.com Introduction The Philippines has maintained an impressive record of economic growth thanks to the strength ofdomestic demand, favorable demographics, and the important role played in the economy by the servicesector. These factors will tend to sustain ongoing demand for financial services. The Philippines is one of the countries with significant economic dynamism, due to its high growth ratesbeing among the top in ASEAN and serving as a key driver of the region's economy.Indeed, even while theoutlook for the global economy remains sluggish, the International Monetary Fund (IMF) sees the countrymaintaining average growth rates of 6.0-6.4% over 2024 to 2028.The key drivers of this economic growthinclude strong domestic demand, with private sector consumption accounting for up to 75% of the GrossDomestic Product (GDP),alongside remittances from overseas Filipino workers (OFWs) represent a full 10% ofGDP.In addition, the service sector accounts for more than 60% of GDP, in particular business processoutsourcing services such as call centers and IT services. The positive influence played on the economy by strong domestic spending and the vibrant service sector stemsat least in part from the country’s demography. In particular, the Philippines has a population of 110 million thathas an average age of just 25 (this compares to the ASEAN average of 31.5 and Thailand’s average age of 40).Moreover, over 90% of the population speaks English, albeit as a second language, and so the labor force is wellpositioned to support future expansion in the economy. Given this, it is very likely that ongoing economicgrowth and rising personal income and wealth will support broadening demand for financial services, bothdomestically and internationally. Regarding the financial landscape of the Philippines, the banking sector plays a significant role and continues togrow. Although retail customers and small businesses often face difficulties accessing capital and other financialservices, especially when dealing with commercial banks themselves, the scenario is improving. The rapidgrowth of digital technology in finance and the support to the sector provided by the government will expandbusiness opportunities for the banking sector, which will then be well placed to connect to new consumergroups and to meet broadening future demand for financial services. This paper therefore seeks to answer the following set of related questions: How is the Philippine financiallandscape developing? How is the financial sector linked to the real economy? And what are the businessopportunities and challenges in the Philippine banking sector that should be monitored? WanichaDirekudomsak KrittabhornSirichaichingkun Senior Economistwanicha.direkudomsak@krungsri.com+662 2964734 Economistkrittabhorn.sirichaichingkun@krungsri.com+662 296 2968 The development of financial landscape inthe Philippines, and the linkages betweenthe financial sector and the real economy Compared to its regional peers, the Philippine banking sector is somewhat large, and this reflects the fact thatcorporations typically remain relatively disengaged from bond and stock markets and instead rely on largebanks as sources of capital. Although the microfinance initiatives, the development of the fintech industry, andgovernment efforts have helped to broaden access to financial services for retail customers and smallbusinesses, collaboration from the banking sector is crucial to enhance the efficiency of capital allocation and toboost econ