MANILA, Philippines—The new chief of the Chamber of Thrift Banks on Wednesday urged member-banks to brace for stiffer competition from commercial banks and work harder at securing more business away from informal lenders.
CTB president Patrick Cheng told member banks during their national convention to continue servicing their niche markets, noting that the large number of informal lenders out there served as an indication of how big their business could further grow.
By presenting themselves as the better alternative to informal lenders or loan sharks, CTB aims to introduce more professionalism and transparency in financial services.
Cheng, who is also president of HSBC Savings Bank, added that the industry should be ready for tougher competition, especially from the bigger banking players, many of which are now going down-market.
“Bigger banks come into our turf. Therefore, we must remain resourceful and use our local market knowledge and network and relationships we’ve built to keep the upper hand,” he said.
The new CTB chief also said thrift banks should not lose sight of their corporate social responsibility in the communities where they operate.
As to priorities, Cheng said the CTB board, among others, would continue to support efforts to enhance and strengthen the banking system.
“After the global crisis, enough is no longer enough. Puwede na (that will do) is no longer sufficient. Regulations and guidelines will continue to evolve to ensure that the banking system will remain safe, and can withstand systemic shocks,” he said.
CTB is the umbrella organization of the country’s thrift banks. As of end-2010, there are 73 thrift banks, of which 62 are savings and mortgage banks, five are private development banks, three are stock saving and loan associations, and three are microfinance institutions operating in the country.—Doris C. Dumlao