A study has shown that debt settlement remains a major worry for the Filipinos and managing it is a struggle for 70 percent of consumers in the country.
The study by Forrester Consulting has said that the Filipinos remain most worried about their financial status compared to the residents of other countries in the Asia Pacific countries.
The banking software solution provider has further noted that the banks that simplify “financial wellness and provide personalized solutions “will be in a position to settle debts and build customer loyalty.
However, many banks in the Philippines are finding it difficult to catch up with advancements and cater to new demands as the banking landscape is continuously changing.
Several financial institutions in the Philippines believe that developing digital money management solutions comes with distinct organizational obstacles. Organizational silos (78 percent), competing priorities (74 percent) and a limited perspective of consumer data (74 percent) are the top three issues highlighted by respondents.
Iman Ghodosi, Backbase’s regional vice president for Asia Pacific, said that the advancements in digital technology could help offer banks “digital services to assist in managing debt correctly.”
The trust on digital banks however remains poor with only 18 percent of respondents indicating they trust a digital bank compared to 60 percent for a traditional bank. (AW)