|
FILIPINOS, increasingly, are putting their money in
risky investment products, a Hongkong Shanghai and Banking Corp. (HSBC)
official said.
As the economy posted higher
growth, banks are benefiting from the increase in consumer spending
which is now shifting to investment products, Nicolas Winsor,
HSBC’s Asia-Pacific head for personal financial services, said.
Of the total investments,
estimates show that risky investment products now accounted for 25
percent, whereas savings accounts now declined to 75 percent from
100 percent previously.
“As new products come in,
consumers have more choice,” Winsor said.
The shift to risky products
happens because of consumer education and the development of the
domestic capital market. Banks offer a wider selection of financial
instruments and securities denominated in pesos or dollars. Lenders
also provide clients with higher returns on their other investments
products through various pooled funds.
Personal financial services
contribute 25 percent of a bank’s income.
HSBC said it expects to exceed
its 1 million target in terms of volume of credit cards issued this
year, positioning the bank as the country’s second largest plastic
money issuer.
At end-June, HSBC has issued
920,000 credit cards.
“Our goal is to issue 1.5
million credit cards in the next three years,” Christopher Rourke,
senior vice-president for marketing and product development, said.
In terms of target market, HSBC
is preparing to reach overseas Filipino workers (OFW) next year in
line with the expansion of the bank’s credit-card business.
The economic growth, fueled by
consumer spending, is supported by robust OFW remittances, which are
seen to reach $14 billion this year from $12.9 billion last year.
--Maricel E. Burgonio
|
