The Asian Banker Journal, a prestigious Asia Pacific regional business and financial publication, said that the country’s banking system is more "accounting-centric" or more concerned about the bottom line rather than its customers.
Emmanuel Daniel, Journal managing director and editor-in-chief, said that banks in the region have grown or remained competitive as these had been able to adjust to the demands of the market.
"Banks must know the profitability of their customers and not just their products," Daniel said during the monthly membership meeting of the Bank Marketing Association of the Philippines (BMAP) the other day.
As a result of that weakness, a majority of the country’s banks have not been able to adjust technologically to the demands or needs of the market.
"There are not enough branches, automatic teller machines (ATMs), kiosks, and Internet banking facilities to reach a huge potential market," the study said.
"Those are just some of the operational weaknesses or challenges of the Philippine banking system," Daniel said. "There are also business issues that the system must address to catch up or remain competitive in the region,"he added.
The survey also showed that the Philippine banking system will end up "a loser if it persists on the bank secrecy issue."
"The only other country which maintains a bank secrecy law is Singapore. But that country is perceived as a bastion or center of private banking in the region while the Philippines is perceived as a money laundering center," Daniel pointed out.
He added that there are other compliance requirements in the global banking system, which the Philippine banking system must comply with if it wants to continue operating competitively regionally and globally.
The survey covered 112 banks in the region with 20 coming from the Philippines.
In the same forum, the The Asian Banking Journal recognized the Bank of the Philipine Islands (BPI) as the best retail bank in the Philippines.