Philippine banks have a huge advantage when it comes to expanding outside the country in the upcoming Association of Southeast Asian Nations (Asean) Economic Community (AEC) integration in 2015, software and technology services company SunGard said.
SunGard’s statement was based on the findings of the Bank Readiness Report, which surveyed of 1,000 bank consumers in 10 emerging countries: Indonesia, Malaysia, Philippines, Thailand in Southeast Asia; and Kuwait, Qatar, Saudi Arabia, United Arab Emirates, Jordan, Bahrain in the Middle East.
In a briefing, Dean Young, vice president of product management for SunGard’s retail banking business, said that Filipino customers have high level of trust in Philippine banks in service they give and their operation.
According to the survey, 92 percent of the Filipinos respondents agree or strongly agree with the statement “I trust my banks.”
In terms of satisfaction, 93 percent of Filipino respondents said that they are satisfied with their primary bank, while 73 percent of Filipino respondents felt that their bank understands their needs.
“Banks are doing a good job here. There were no banks that have had public failures or disasters that has an effect to trust. Banks here are obviously very sound, [they]did not make any risky investment,” Young said.
He added that the Philippines has a very respectable and stable banking environment, which resulted in the trust of customers.
“Trust is something easily lost. But it is something that perhaps not easily appreciated or taken advantage of banks here in the Philippines. Trust means loyalty of customer, its also means the ability to sell or cross sell [products],” the SunGard executive added.
Young also said that high trust puts the Philippine banks in a stronger position to maintain a market share, and to keep their customers loyal.
Trust is also a huge advantage in terms of stronger customer base, he noted, adding that, “If your customers trust you, you can have a stable customer base. Its unlikely to move to competition.”
“It’s a good position to strategic planning in things like the Asean Economic Community in 2015. You don’t have to worry about your customer base. You just have to think about opportunities,” the executive said.
“Banks should have a strong, stable base before expanding outside the country. Strong customer base puts Philippine banks in a stronger position in terms of strategic planning and taking advantage of the opportunities in the AEC,” he added.