Citi
has expressed optimism that the number of Filipinos belonging to the
"emerging affluent" segment—composed of people with assets between
US$10,000 and US$100,000—will grow by 10-12 per cent every year over the medium
term.
The international financial institution said
this trend poses a good opportunity for it to grow its business in the
Philippines by marketing new financial services that cater to the "nearly
rich."
In a briefing Thursday, Citi launched its new
financial services program targeting the emerging affluent sector.
These include designation of personal bankers
for their clients; more sophisticated mobile, Internet and phone banking; and
personalised wealth management services.
"There is a huge number of people [in the
Philippines] who will move to the emerging affluent segment, and so we want to
be ahead of the game," Daniel Baranowski, head of Citi’s emerging affluent
group for Asia, said Thursday.
Citi estimates that there are 5 million
Filipinos belonging to the emerging affluent segment, or less than 5 per cent
of the population.
But even at this level, he said the number was
already attractive enough for Citi to invest in the new set of financial
services.
According to Baranowski, the number of
Filipinos belonging to the emerging affluent sector will grow by between 10 and
12 per cent every year over the medium term.
"There are ‘mega-trends’ in the
Philippines that make it attractive for Citi [to invest in more financial
services]. These include rising urbanisation and demand for goods and services,
as well as an economy that is growing by 4 to 5 per cent a year,"
Baranowski said.
"We estimate that the number of people in
the emerging market segment will grow twice as much as the growth of the
economy," he added.
Baranowski also said the Philippine economy’s
sustained growth, even at the height of global economic challenges, makes the
country attractive for banking business.
Over the past decade, the Philippines has
posted an average growth of nearly 5 per cent.
"We see the Philippines as a good
market," Baranowski said.
Citi expects the country’s growth to outpace
that of the industrialised economies, which are currently growing by only 2 per
cent.
Baranowski said the rapid urbanisation in the
country is likewise a come-on for banks since this indicates a growing demand
for financial services.
The new set of financial services that Citi
launched in the Philippines Thursday was also launched in other selected Asian
markets such as Taiwan, China, Singapore and Hong Kong.
Citi said the new set of financial services
for the emerging affluent segment will also be launched in four to five more
emerging markets in Asia, which is expected to continue driving growth of the
global economy over the medium term as industrialised nations are struggling
with debt woes.
Individuals who belong to the emerging
affluent segment, besides earning between US$10,000 and US$100,000, are also
described as employed, mobile (travel frequently), Internet savvy, and keen on
having a financial plan.
A survey conducted by Citi among emerging
markets in Asia, including the Philippines, showed that people in the emerging
affluent segment want more personalised and sophisticated services from their
banks.
Citi said this is why the bank had decided to
enhance its financial services, as it targets to boost income by tapping new
markets such as the emerging affluent sector.
Michelle V. Remo
Philippine Daily Inquirer
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Consulting, Investment and Management, focusing three main economic sectors: International PR; Healthcare & Wellness;and Tourism & Hospitality. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programs. Sign up with twitter to get news updates with @SaigonBusinessC. Thanks.
No comments:
Post a Comment