COVID reverses reluctance in online banking: JP Morgan

MANILA – The COVID-19 pandemic has accelerated the growth of online financial services, reversing the reluctance of banks and consumers in previous years, said Harsh Modi, Asia co-head of financial research at JP Morgan on Tuesday.

There is a “significant increase” in the adaptation of online services as people could not leave their homes due to pandemic restrictions or fear of being infected, Modi told the ANC.

Besides e-commerce, fintech and online payments have grown, he said.

“The need has been around for a long time, but what we’ve seen, say, over the past two years is that banks were reluctant to invest significantly, and customers were also reluctant to use online channels. . months that has changed, ”Modi said.

“We have seen a very significant acceleration of the shift in favor of banking and all the banks have fundamentally risen to the occasion by providing all of these channels for clients to transact in a very transparent manner,” a- he added.

Modi said the Philippines was in the “first evolutionary phase” of adapting financial services and online payment, but the technological means could be the “most dominant” in the country in about 3 to 5 years.

Over the past 20 months, the growth rate has been “quite phenomenal” with user numbers growing 40 to 50 percent in terms of online banking customers, he said.

The Bangko Sentral ng Pilipinas is also pushing for the adaptation of digital payments as part of its National Retail Payment System (NRPS) with InstaPay and PesoNet.

A framework for digital banks was also released earlier, allowing neobanks to set up shop in the country. So far, there are 4 fully digital licensed banks in the Philippines, BSP said earlier.

BSP Governor Benjamin Diokno said the country’s digitization goals include digitizing at least 50% of payments and encouraging at least 70% of the population to open bank accounts by 2023 .

ANC, ANC Top, JP Morgan, Digital banks, fintech, online banking, COVID-19, COVID-19 pandemic

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