SECTION E FEBRUARY 29, 2016
ON THE BRINK OF CHANGE: WHO’S DRIVING? 2016 is an election year. As with every election year, changes are to be expected. Among the changes we are hoping for are solutions to the various problems we are facing: poverty, unemployment, hunger, food security, education, transportation, peace and order, crime, climate change, the energy crisis, lack of infrastructure, disaster management and traffic, traffic, traffic. And with every election, people are reminded that their choice of leaders will dictate if, and how these problems
will be solved. Every election, people look at their leaders to solve these crises, hoping for solutions that would eradicate them, once and for all. But realists will concur that these problems have been with us for a long time, and cannot be solved by just a few leaders all by themselves. While politicians have been known to refer to themselves as drivers, it is apparent that there are many other factors and entities driving the changes we need to see. Technology is a driver. So is advocacy. Then there is
business. And most importantly, the many people guided by vision, great and small, to change things they think need to be changed. Whatever the outcome of the elections, whether our individual choices win or not, we all know some changes must happen. Our government is expected to lead, definitely. But the changes we hope for will come faster with everyone, with all of us, helping and more importantly, forging ahead.
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29th Anniversary editorial@thestandard.com.ph
IMPROVING EDUCATION: IT TAKES MORE THAN JUST TECHNOLOGY
TECHNOLOGY has been said to be one of the easiest ways to solve the problems of educating children in the Philippines. For problems like crowded classrooms or worse, nonexistent classrooms, e-learning and digital technology has been one of the means to ensure that quality education reaches children even in the farthest regions of the country. The timing is definitely perfect. Today’s students are what can be called “digital natives,” people who have never seen a time when digital technology hasn’t existed, and have been interacting with it, one way or another since early childhood. In our country alone, cellphones are no longer considered a luxury; they have, in fact, become a necessity. Handheld internet has also now become accessible to almost everyone, even people from farflung regions of the country. Given this situation, making the learning experience enriching and long-lasting for digital natives is for “digital immigrants,” the generation born before the advent of digital technology. For one, digital natives now have different styles of learning. At a summit last year, Eileen Lento, director for global education, marketing, and advocacy for Intel, said that “There have been significant research on brain activity that say that because of media exposure, children’s brains are literally wired differently than ours are. Children are still getting the same cognitive advancement that we are, but they’re processing the information in another way. It’s not better or worse; just changed. And it’s not just schooling; it’s their whole lives. It’s the experience they’re immersed in.” Fortunately, narrowing the gap between digital natives and digital immigrants
Putting the student at the center is integral to effectively designing hardware, software and systems to improve education.
proof and fall-proof notebooks, laptops with handles and rounded corners for better grips, 180-degree screen views, rotating cameras, and long battery lives. On the soft ware front, we have, for instance, soft ware suites that allow schools easier control such as a classroom management application that helps the teacher still have control of the flow of lesson despite every student having his or her own device. And of course, the many applications for science, math, and art that make learning more engaging and encourage retention. ACCESS IN REMOTE AREAS Powerful mobile devices have been proven as the solution to an ongoing problem—the existence of remote regions
is an issue that many individuals and companies are addressing, making the prospects for the future of education more promising in many ways, Teachers training in the use of technology as a teaching aid. Teacher preparedness is one of the biggest factors in making sure that technology serves education. Luckily, more and more companies – both techbased companies and non-tech-based companies are including teacher training as part of their advocacy, ensuring that the tools they have access to now are used properly. One example is Intel, partnering with educators such as schools, , institutions, and NGOs in order to ensure there are sufficient training programs for the educators. Schools deciding to adopt a digital learning system now are assured that proper training is supplied for their
Mathizen is Math review site that has steadily been gaining notice and accolades, The Tacloban City-based startuo was one of the 23 shortlisted in the IdeaSpace Foundation Inc.’s competition for technology innovation.
use. In most cases, teachers are first given the devices for a specific time period and are trained in its use and facilitation, before distribution students. As of this writing, Intel alone has trained over 14 million teachers worldwide. In the Philippines, where both public and private schools are adopting digital learning systems in the implementation of the curriculum, most of which began with training their teachers in the use of the technology. As a result, technology in the form of soft ware programs, applications, and more help students improve math, language, and science skills, as well as increase creativity. Even more importantly, it is not only students who improve , collaboration, critical thinking, and creativity, but the teachers as well. Hardware and soft ware designed for education Designers for tech hardware and soft ware, now aware of the impact they have on education are increasingly conscious, and thus are constantly researching the requirements of educators, parents, and administrators for the classroom. As a result of this feedback, we now have hardware that includes spill-
with no access to steady electricity and modern educational technology. One successful Intel case study is that of Marilog Central Elementary School in Davao, which had no access to electricity. Through the initiative of its principal, the school received Intel support for the professional development of its teachershrough powerful mobile computing devices and training. To solve the electricity problem, the first phase of the project required installation of solar panels to power the devices, and afterwards, a server with cached information such as databases and learning applications. EDUCATION AS AN ADVOCACY At the center of all these exciting developments, are, of course, the many corporations and individuals that make educating our children among their core advocacies. Companies like Microsoft, Intel, Apple, Dell, Acer, Samsung and Asus, among others are the most visible, given that these are the labels on the devices. But there are many more from the back-end like our telecommunications corporations, energy suppliers and of course, the small firms that focus on ensuring continuous growth in technology for education’s sake. With the many systems, tools and programs being developed, the future of education has changed from bleak to bright. And driving the change are the ever-growing number of corporations and Halina’tBumasa is another e-learning IdeaSpace incubator which, along with Frontlearners, made it to the top ten, winning funding and a grant. It builds educational apps that promote early literacy and love for Filipino culture. Frontlearners, on the other hand, an e-learning content developer and provider that enables blended learning classes
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29th Anniversary editorial@thestandard.com.ph
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THE LANGUAGE OF THE WEB, AND HOW IT’S CHANGED OUR LIVES
“Science and technology multiply around us. To an increasing extent they dictate the languages in which we speak and think. Either we use those languages, or we remain mute.” —J. G. Ballard
IT’S a given that language evolves. Every year, new words make their way into the English dictionary, and old words acquire new meanings. The 1970s saw terms like “video,” “environmentalism,” “junk food,” and “glitz” being added to our vocabulary. In the 80s, “microwavable,” “three-peat,” and “compact disc” made their way into everyday conversation, while the word “impacted” came to mean something other than the state of a tooth. But of all the periods in human history, the internet age is probably the one that has spawned the most new words and new definitions to existing words. Remember when the word “link” simply meant a segment in a chain? Or when the word “program” meant either a show or the souvenir booklet that came with a stage production? Or how about the time when a window was nothing more than the part of the house where you put blinds or curtains, a desktop was just that, the top of your desk, and the only thing you could surf was the waves? Then there are the words that didn’t exist before the internet era. Check a dictionary published in the 1990s and you won’t find unfriend, netizen, netiquette, hashtag, photobomb, selfie, or ussie. All of these were added to the Oxford Dictionary over the last ten years (some as recently as last year), and all can be attributed to the net or net-related activities. Not surprisingly, internet providers have also introduced their own new words, mostly value added services like unli-surf and unli-facebook, names that have become generic to the net surfer. Trademark names haven’t been spared. Remember how Colgate came to be the generic term for toothpaste, and Tide meant any type of detergent? The same thing has happened in cyberspace. “Google” has come to be equated with “search,” even though there are other search engine sites. A photo that has been digitally retouched is now described as “Photoshopped,” even though there are other photo-editing applications. Microsoft Powerpoint isn’t the only presentation soft ware these is, but all presentation fi les are generically referred to as Powerpoint decks. Another change brought about by the internet is the way words are used. Not too long ago, you either liked something
or you didn’t. You couldn’t be asked to like something, not even by your best friend. Today, social media has changed that. Requests and invitations that go, “Like our page” or “Like this comment if you agree” are not uncommon in Facebook. Then there’s the use of the word “unlike.” Originally only an adjective, this word is now used as a verb as well. When you unlike something, you withdraw a previous approval of a page or post that you originally “liked” (by clicking the “Like” button). Of course, the past tense
form “unliked” has entered the dictionary as an entirely new word. Drop-down menu. Doubleclick. Right-click. Floating window. Hover. Copy-paste. Browser. Flag. Command. Escape. Tab. The list goes on and on, and there are presently enough internet-related terms to fill up a book or an entire website (both of which have in fact been done). So what does this all mean to us? For the non-netizen, hearing these terms in casual conversation can be confusing, if not downright confounding. An 85-year-old being
told by his teenage granddaughter that she’s just spent an hour chatting with her overseas cousin might react by saying, “Wow, that’s really going to jack up your phone bill.” A city dweller visiting a far-flung town with no internet is likely to draw stares when he asks the locals to pose with him for an ussie. But by and large, people know well enough to keep net language separate from real-world language. You don’t hear people asking their friends to like their new shoes or their new hairstyle. You don’t hear kids
saying they’ve unfriended someone when what they mean is they’ve had a falling out with someone they used to be friends with. And you don’t hear music fans saying they’ve unliked their favorite band because they’ve sold out. Sure, there will always be some confusion and misunderstandings brought about by the use of netrelated terms. But when you really come down to it, these would be no different from the confusion and misunderstandings of the previous generations. It’s all part of the evolution of language.
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A PARENTS’ GUIDE TO TXTSPK
“Btw, ma, atm idk wat tym il be home.” “Afaik, r rehersl wil end at 7 but tbh im nt sure.” If you struggle on a regular basis deciphering your kids’ text messages, you have two choices. You either require them to steer clear of abbreviations at least when they text you, or you learn the language of texting, also known as textspeak. Or more appropriately, txtspk. If you plan on going with the first option, we must warn you that it won’t be easy for your kids. It’s not that today’s youth are a rebellious bunch who frown on established norms of proper spelling. It’s just that typing in txtspk has become so habitual, so deeply ingrained in their systems that punching in completely spelled out words on their mobile phones would actually be a major adjustment for them, another burden in their already problem-filled young lives. “I have to deal with pimples, a boyfriend who keeps looking at all the pretty girls, a math teacher who terrorizes us, and now you’re asking me to text in complete words??” Fortunately, you still have the second option. And the good news is, it’s not that hard once you get the hang of it. But first, some background information. The origins. Txtspk made its first appearance in the late 1990s, when cellphones became affordable and exploded into the mainstream market. The early models featured the cumbersome press-2-once-to-type-”a”-twice-to-type”b”-and-thrice-to-type-”c” texting process. This, coupled with the character limit imposed by telcos, made txtspk a necessity. “Ur” took the place of “your” and “you’re,” “dis” meant “this,” and “il” meant “I’ll.” Some txpsk entries even combined letters and numerals to form words, for example, “gr8” for “great” and “b4” for “before.” As the cellular revolution went into full swing in the early 2000s, phone manufacturers introduced the predictive texting feature, which now allowed users to type in complete words in fewer keystrokes. About the same time, telcos like Globe expanded the maximum allowable number of characters per text message, and even introduced the extra-length message feature, which allowed subscribers to type single texts equivalent to two or three texts in length (billed as two or three texts, of course). Later, phones equipped with Qwerty keypads made it even easier to type complete words. Still, the use of txtspk continued. Many users, mostly youngsters, chose to disable their phones’ predictive feature, and
kept within the per-text character limit. Cost-consciousness? Probably not. It was more likely force of habit. The thinking seemed to be, “I’ve been doing it this way and my friends and I understand each other just fine, so why change things?” And more abbreviations. As do most languages, txtspk soon evolved. Just when the purists were getting used to the ubiquitous “b4,” “ur” and “il,” along came abbreviations of entire phrases. Some of the earlier entries to this category of txtspk include NP for “no problem,” IDK for “I don’t know” and IMHO for “in my honest (or humble) opinion.” Over the years, the list of phrase abbreviations got longer and longer, much to the consternation of the purists. ATM no longer meant just automated teller machine. It came to mean “at the moment.” And you think WB stands for Warner Bros? In txtspk it means “welcome back.” Learning the language. The thought of using txtspk abbreviations may be about as appealing to you as a root canal procedure, but that doesn’t mean you shouldn’t at least learn what they mean. Below is a list of some of the more commonly used items. We suggest you cut this out and use it as a handy reference for the next time you see these in your kids’ messages. [NOTE: Some of these abbreviations actually date back to the pre-cellphone days, but not surprisingly found their way into txtspk.] ABBREVIATION MEANING ADN Any day now AFAIK As far as I know ATM At the moment B4 Before BF/ GF Boyfriend / Girlfriend BFN Bye for now BRB Be right back BTW By the way DWBH Don’t worry, be happy F2F or FTF Face to face FB Facebook FWIK From what I know FWIW For what it’s worth FYI For your information GLHF Good luck, have fun GR8 Great HAK Hugs and kisses HAND Have a nice day
HTH IDC IDK IIRC IKR IMHO IRL
IU2U IYKWIM JK J4F JIC JSYK K or KK LMAO LMK LOL NAGI NM NMU NP NRN NTS OH OMG PPL PTB RL ROFL RUOK SMH SRSLY SSDD SWYP TBH TIA TTYL TY WB WTH WYCM YW
Hope this helps / Happy to help I don’t care I don’t know If I remember correctly I know, right? In my honest opinion / In my humble opinion In real life (as opposed to in cyberspace) It’s up to you If you know what I mean Just kidding Just for fun Just in case Just so you know Okay Laughing my ass off Let me know Laughing out loud Not a good idea Never mind Not much, you? No problem No reply necessary Note to self Overheard Oh my God People Please text back Real life Rolling on the floor laughing Are you okay? Shaking my head Seriously Same stuff, different day So what’s your problem? To be honest Thanks in advance Talk to you later Thank you Welcome back What the heck? Will you call me? You’re welcome
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E5 THE TAXI, THE TNC AND THE TNVS: CHANGING TRANSPORT IN THE METRO 29th Anniversary editorial@thestandard.com.ph
PUBLIC transport woes still plague the country, but for the taxi-riding public, technology has created a solution. Whereas before, people needing to ride a cab needed to physically hail a taxi or call a taxi operator to have one sent – a problem, particularly during rush hour, or if one is at a location where traffic rarely passes. With the introduction of GrabTaxi and EasyTaxi, anyone with a smartphone can just click open an app, indicate the pickup point and destination and wait for the driver to arrive for just a minimal fee on top of the fare. Still, it did not solve the existing problem of supply versus demand. There were still more passengers than vehicles. Enter UBER and GrabCar, services that allowed what was called ride-sharing with private vehicles, effectively increasing the number of vehicles. For the riding public, UBER and GrabCaroffered another advantage– the option to not look like part of the taxi-riding public– a plus for the image-conscious citizens of the metro. Both services use unmarked, private vehicles, and in the case of UBER Black and GrabCar Premium, luxury vehicles such as Hummers and different brands of SUVs are also an option. Application-based systems such as UBER and Grab have made drastic changes to an old system that hasn’t changed for decades– except perhaps for the rising problems that have worsened in the last few years. Cases of price-gouging drivers, unavailability of vehicles often during rush hour, safety issues (both for the riding public and drivers) have steadily been increasing despite attempts to control them by the agencies tasked to regulate transportation. RESISTANCE AND ACCEPTANCE While GrabTaxi and its earliest competitor, EasyTaxi, encountered little to no resistance as they used existing units already registered by the LTFRB and was just an app that connected drivers and their vehicles with passengers, the private-car using services (UBER and GrabCar) did. These services (and the vehicles they used) had problems with accreditation, said to be prompted by the taxi operators putting pressure on Congress and the Land Transportation Franchising and Regulatory Board (LTFRB). But as the saying goes, there is no stopping change. In May last year, the LTFRB made the first step in recognizing the fact that Uber and GrabCar were here to stay. This began with drafting regulations, legally identifying an app-based transportservice as a Transport Network Company (TNC). The regulations also allowed and required a vehicle used by a TNC was to apply legally for a franchise as a Transport Network Vehicle Service (TNVS). Still, resistance has not stopped. In December 2015, an association of taxi drivers and operators known as AngatTsuperSamahanngmgaTsuper at Operator ngPilipinas Genuine Organization Transport Coalition, represented by PascualMagno managed to get the Quezon City Regional Trial Court to issue a temporary restraining order (TRO) stopping the operation of the private transport services for 20 days. The
TNCs such as Grab and UBER are recognized by the LTFRB but are still the target of many petitions by transport groups
TRO cancelled the earlier memoranda issued by the LTFRB covering the accreditation of transportation network companies and issuance of franchises to TNVS. According to the resolution, the Court found that “claim by the petitioner that they suffer less or low incomes and earnings due to the sudden and TURN TO E6
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THE TAXI... FROM E5 uncontrolled increase in the number of TNCs (Transport Network Vehicle Services) utility vehicles running in the streets of Metro Manila” was persuasive. It also said the petitioner showed that the rights of franchisees of public utility vehicles have been affected by the operations of Uber and GrabCar, and that “here is a material and substantial invasion of the rights of the officers and members of the Association as holders of Certificates of Public Convenience necessary for the operation of their utility vehicles.” In another development, however, the LTFRB dismissed all motions filed by a transport group against the operations of vehicles under the ridesharing apps Uber and Grab in a consolidated order on February 23, 2016, denying for lack of merit the petitions filed by 1-United Transport Koalisyon (1-Utak) against the operations of the Transport Network Companies (TNCs) and issuance of franchise to their partner Transport Network Vehicle Services (TNVS). According to LTFRB Chairman Winston Ginez, “PUV operators and transport groups should welcome the challenge and competition for better public transport service, which would serve the best interest of the public
editorial@thestandard.com.ph
safety and convenience.” Still, the resistance continues. Another transport group, Stop and Go, has a pending petition in the Quezon City Regional Trial Court against the DO for TNCs and TNVS.
A CASE FOR TNCS For the customers, it is hard to believe that an obvious solution to a big problem would meet such resistance. After all the TNCs and the TNVs allow convenience, safety and security, for a fee. Cars and Drivers. How it works is simple–once a driver is assigned, a passenger is able to track the drivers’ position and route, and communicate with the driver if necessary. A driver learns the passenger’s destination prior to bidding taking care of the problem of being refused access to a taxi when traveling to undesirable parts of town. Unprofessional drivers are weeded out because passengers get to rate the driver’s performance, and a consistently low rating will force a driver out of the TNC. TNCs regulate their vehicles that register with them, which means that most cars are clean and wellmaintained, late- model cars that are chauffeured by drivers who are, for the most part, celan, well-dressed and courteous. Review and feedback systems employed by the TNCs allow passengers to complain and receive immediate resolutions in case of the occasional ‘black sheep.” Fares, Pricing and Payment. While normal taxis are cheaper offhand compared to TNCs that have fees on top of metered fares as well as surge/rush hour rates. However, in Metro Manila, there is no assurance that a taxi will cost less. The inevitable add-on a taxi driver will ask during rush hour and/ or suburban destination, bad meters, per minute charges in traffic and the With UBER Black and GrabCar Premium, high-end vehicles are also for hire as easy as clicking on like can drive up the fare an app. considerably. Add to that
UBER and Grabcar offer unmarked private cars instead of regular taxis
the frustration and stress encountering such taxis can bring. In the case of Uber and recently, Grab, credit card payments also ensure safety for both the passengers and the drivers. Email receipts are also sent, allowing those with expense accounts an easier time of tracking. Safety. Perhaps the biggest benefit for both passengers and drivers, is the safety promised by the system .Geotracking employed by the app allows for added security. Passengers even have the option to post their trips on social media, allowing their friends and family to know where they are. For Uber and Grab, the credit card option keeps the transaction is cash-less, so drivers needs not worry about unpaid fares carrying any cash that might entice robbers. IS THERE A DOWNSIDE? There are few, if any, any downsides for customers. “Surge pricing” for UBER, or “rush hour rates” – a method of pricing based on supply and demand– can be a source of annoyance, however. For the industry, however, the competition can be a problem for traditional operators and drivers. Another issue raised by the transport groups also bears thinking about: the introduction of more vehicles on roads that are already unable to handle the current volume of vehicles. With many private car owners enticed to go into business with UBER or Grab by buying new vehicles and registering them with the TNCs, the supply and demand issues are solved, but the traffic problem worsens. Many would argue, however, that traffic is an issue of bigger and more roads, and better mass transport systems.
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E7 BANKING AND BEYOND: WHY THERE’S MORE TO COME IN 2016 29th Anniversary editorial@thestandard.com.ph
By: Carla Bianca V. Ravanes FOR the first time in a long time, the Philippine economy is booming in a way that citizens haven’t seen before. And while not everyone can understand the depth of the terms, even the most ordinary of citizens can understand the fact that they can actually spend more on food, travel, and different forms of leisure. A report made by the Asian Development Bank released late last year says, “Consumption and private investment remained robust, supported by higher employment, low inflation, and rising remittance inflows.” In August, inflation ebbed at a 0.6%, which reflected in a global slide of oil prices and soft food costs. This led to additional growth in private investment and household consumption, which can be credited to employment, consistent remittances and low oil process. The service industry also provided in the growth of the finance sector of the country getting its main source from popular BPOs, tourism, and retailing services. Because of the energetic cash flow witnessed by the country late last year, citizens are more comfortable when it comes to spending which proves to have an overall good effect on the country and the banking section. And while most Filipinos are excited over what the last year brought, it is expected that the banking sector is to grow even more in 2016. THE JUMP FROM 2015 TO 2016 The beginning of 2015 saw a minor pullback in growth for the Philippine economy. However, it is expected to bounce back this year due to a pick up in government spending and exports. It is projected by the Asian Development Bank for the Philippines’ GDP to grow to a robust 6.3%. The growth in fiscal spending which is greatly affected by the upcoming elections will definitely boost the domestic economy. Enacted reforms by the government will also help improve competitiveness and investment that will solidify the growth of the country. Taking in all the growth is the expanding banking system of the Philippines. POSITIVE FITCH RATING AND ITS EFFECT ON THE BANKING SYSTEM Granted a positive Fitch Rating in December of last year, the Philippine banking system is expected to have a positive and healthy amount of growth in 2016. The positive rating was given despite the projections of it being a tough year ahead for financial systems in the Asia and the Pacific (APAC) due to China’s slowing economy and expected higher borrowing costs in the United States. However, the Philippines was given this positive rating due to the generally healthy profile of local lenders, sound operating environment and the Philippines’ strong economic fundamentals. In fact, in the entire scope of APAC, the Philippines is the only banking market that has been given a positive rating outlook for this year further cementing the stability of the Philippine banking sector. The Fitch brief therefore explains its effect stating that the effects of the positive effect may not be in effect immediately but the trends that the banking industry is engaged in will definitely bring about positive results in the next two years. The positive outlook reflects the direction that the banking industry is headed and for the debt watcher, the growth is inevitably positive.
The qualities that strengthened the position of the banking industry include the “Philippine banks’ high capitalization, healthy funding and liquidity, and satisfactory loan-loss reserves help to balance the risks from relatively high credit growth in the past few years”. THE BANKING INDUSTRY IN 2016 For an outsider, the banking industry looks one and the same. However, for experts, the banking industry in the country is experiencing growth in a way that it hasn’t in a long time. Growing consistently since the beginning of 2015 increasing profits by at least 10.7 percent in the first quarter alone, the sector’s performance is definitely impressive. The growth has been seen since 2014, where the banking sector took off by growing 12 percent due to an increase in loans and portfolio investments. It also helps that people are wiser when it comes to investments and are more willing to invest which has increased the need for loans and portfolio investment. Because of the steady growth experienced in the last two years alone, the banking sector is looked upon with optimism. In fact, at the beginning of last year, Bangko Sentral ng Pilipinas (BSP) boasted a presence of about 648 different banks, 9,700 branches, 15,695 ATM machines, 517 offices of microfinances institutions and 251 banks with e-Banking facilities which include online services and mobile banking. Another credit-ratings agency, Moody, once credited the success of the banking sector to the following factors:
consistent robust economic growth despite the slowing global demand, moderate inflation, and an improved standard of the banking sector’s asset quality which led to the prevention of the overheating of domestic asset markets. The structural transformation that the
industry underwent beginning in 2014, which removed the restrictions on the degree of foreign bank ownership, has also bolstered the growth of the industry. Once the caps have been lifted, foreign TURN TO E8
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BANKING...
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banks have entered the country consistently. President Aquino’s desire to attract more foreign investments has fueled the sector even more bringing in even more interest from foreign banks especially since the full Association of South East Asian Nations (ASEAN) banking integration is expected in the very near future. It is this foreign interest that fuels the industrial structure and competitiveness of the Philippines’ banking industry. ASEAN INTEGRATION The industry is also set for brighter things to come because of its inclusion in the “ASEAN 5” joining the ranks of Thailand, Malaysia, Singapore, and Indonesia. The ASEAN Banking Integration Framework (ABIF) agreement, which was signed in March of 2015, is expected to change the banking landscape of all member nations by 2020. As part of the “ASEAN 5”, the Philippines is expected to play a bigger role in this integration. The ASEAN integration is rather simplistic. With this integration, 10 separate economies will be merged into a single market that provides an enormous base within which consumers and providers can operate. The single base is significant and that is which that can outpace the race of the world. With an integrated market, ASEAN will eventually be the 4th largest economy by 2050. And while the road to this is not without challenges, it is expected to bring forth the changes that the country needs to propel even further. In fact, even the BSP believe that the local banking industry is ready for the full financial integration. Late last year BSP Governor Amando Tetangco Jr. was quoted saying said
that while the local banking industry needs more preparation, it is actually more than ready. The banking industry’s position of strength as an industry and individually with the local banks upping their game by providing e-banking opportunities to consumers is contributing to the positive changes. MOVERS AND SHAKERS IN THE INDUSTRY The local banking industry grew by 11.6 % between 2010 and June 2015 and this can mainly be attributed to the country’s four biggest banks: Bank of the Philippine Islands, BDO Unibank, Metrobank, and Land Bank of the Philippines, which ref lect 45% of total assets. In the past year alone, the country’s four megabanks have changed the landscape of the country by providing different banking solutions with focus on e-banking communities. These four banks have become more flexible by providing services not possible before.
Financial technology has positively transformed the industry and is the future of the local banking industry. Today, consumers are more aware of e-banking technology, making transactions easier as compared to the old school over the counter transactions. The banking industry is also keener to provide financial literacy education to their consumers. Today, banks are more than just a place where consumers can store money but actually invest their money in. Banks become a symbol of financial literacy and people’s trust in financial institutions is growing. Banks are also entering “micro deposit accounts” which focus on giving out accounts that have low or minimum deposits with no service charges. This flexibility gives more people the chance to be involved with banks than any time in history. Electronic money or “emoney” is also gaining traction and has grown steadily over the years. The many banking options have boosted the financial market into the stability that it is experiencing presently. LOOKING AHEAD IN 2016 In a speech given earlier by Governor Tetangco Jr., he noted that the Philippine banking sector was a “source of strength and stability for the economy in 2015.” Banks continued to be the major source of funding for productive sectors that eventually helped in generating jobs that supported inclusive growth across the country. The sustained growth and stability of the banking sector in 2015 despite global financial turmoil spoke volumes about the strength of our banking sector. Banks were tested with resilience but this has made them stronger and more stable. Today, the banking sector begins 2016 from a position of strength because the best is yet to come.
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JPY 50,000
SGD 1,000
*Initially available at the following branch stores: METRO MANILA Ayala - Herrera • Ayala - MSE • Intramuros • The Fort - Beaufort | LUZON Angeles - Balibago • Baguio - Rizal Monument • Bataan - Mariveles • Batangas - Sto. Tomas • Carmona • Clark (soon to open) • Sta. Rosa • Subic Bay | VISMIN Bacolod - Lacson • Cagayan de Oro - Velez • Cebu - Grand Cenia • Davao - Sta.Ana
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Metro Manila (632) 888-1700 • Domestic Toll-Free 1-800-1888-8600 U.S. Toll-Free Hotline 1-866-828-6296
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EastWest Bank is regulated by the Bangko Sentral ng Pilipinas. For inquires or complaints, you may contact Easwest Bank through our 24/7 Customer Service Hotline 888-1700 or BSP Financial Consumer Protection Department at Tel. No. 708-7087