A staggering 86% of citizens of the Philippines do not have bank accounts. People simply do not trust the banks. They see them as sharks, looking to take the small amounts of money they’re able to bring home from work.
And they’re not entirely wrong.
Systemic poverty is a major factor in this statistic. If you don’t have very much in the first place, depositing it in a bank account seems foolish. Why pay bank fees to take care of money that you’re spending on a day to day basis anyway?
Therefore, cash has always been king in the Philippines. Many businesses consequently only accept cash, and do not have other means for trading goods. Up until now this has been good business sense.
But indications say that’s about to change, and it may be wise to take advantage of this. Whether you look into acquiring the best POS system or at alternative ways of receiving money, here is how you can make the most of the changing nature of banks in the Philippines.
The local banks have failed
Let’s be blunt. The local banks have failed miserably. Yes, there are systemic reasons why Filipinos do not need bank accounts. You can’t blame the banks for poverty, unemployment, and so on.
However, a banking system is meant to cater to the people it claims to serve. And so, while the American banking system will not work in the Philippines, the local system should be built very differently. It should be designed to help Filipinos manage their money, and not to make money off them.
When you look at the local banks’ offerings, it’s self-evident why they’re not attracting much local business. Filipinos simply have nothing to gain from banking.
New models are emerging
It is therefore appropriate that the new models that are emerging come from outside the country. Banking systems in other regions that have similar socioeconomic issues are being used as models for a complete revamp of the system.
And if you think that this is unnecessary, or simply trying to take advantage of an untapped market, think again. Good banking systems, built with the population in mind, help people save money, generate capital for industry, and afford insurance plans that will ultimately prove invaluable.
Because of the new models being brought over, we should see that 86% plummet in the next few years. You should be there to make the most of the change.
Convenience is king
The most useful thing you can do for your business is make your offerings more convenient. In today’s age, technological progress has a heavy focus on convenience. People love everything that makes basic tasks that much simpler.
And this is no more true than in trade and business transactions. A better banking system will mean cash is no longer the most convenient means of trade. In fact, using cash makes it much more difficult to track expenses and save money.
By investing in modern ways of accepting money, you’ll be ahead of the curve. Convenience will automatically make your business more attractive than most of the others.