The Philippines continues to uphold an exceptional record of economic growth thanks to the strength of domestic demand, favourable demographics, and the important role played in the economy by the service sector. The Philippines is one of the countries with significant economic dynamism, due to its high growth rates being among the top in ASEAN and serving as a key driver of the region’s economy. Banks are the major players within the Philippine financial system and serve as a primary source of capital for large non-financial corporations. In the context of retail customers, it is noteworthy that non-bank providers of financial services continue to hold significance.
Total assets of the Philippine banking system (PBS) expanded by 10.8 percent year-on-year (yo-y) to P25.6 trillion in March 2024. Across banking groups, universal and commercial banks (UKBs) maintained their dominance with 93.9 percent share of the system’s total assets. Thrift banks (TBs), rural and cooperative banks (RCBs), and digital banks (DGBs) accounted for the remaining 4.1 percent, 1.6 percent, and 0.4 percent, respectively. All banking groups posted asset growth during the reference period, indicating their strong performance and expanding operations on the back of a dynamic financial landscape.
Banks’ credit activity continued to be on an uptrend, as loans remained integral in financing the requirements of the country’s key economic sectors, including households. This is seen in the continued growth of the total loan portfolio (TLP) since August 2021. By economic activity, the real estate sector continued to be the largest borrower with 18.7 percent share. This was followed by households, wholesale and retail trade, electricity, gas, steam, and air-conditioning
supply sectors, and manufacturing, with shares of 13.2 percent, 10.6 percent, 9.6 percent, and 9.2 percent, respectively. Major players are putting a foot forward in helping out these sectors and one such player is Asialink Finance Corporation.
Simplifying the Financial Needs
Asialink Finance Corporation, one of the leading and fastest-growing finance companies in the Philippines, was established in June 1997 when a group of ambitious executives entered the consumer credit market with only three million pesos in capitalization. Asialink Finance Corporation started off well with strong demand and solid credit. Today, it serves the financial needs of both individuals and businesses across the country with over 80 locations, more than 700 employees, and thousands of independent loan consultants. The organisation is well-positioned to serve a greater portion of the market while continuing to assist its primary clientele in the underserved and unbanked sectors thanks to attractive interest rates and quick processing times. By offering inclusive financial access, the company hopes to play a significant role in promoting economic growth. They make it possible for businesses to expand and for people to realise their aspirations by becoming the most vibrant and reliable loan partner.
Asialink Finance Corp. has become one of the biggest consumer finance companies in the nation. During the COVID-19 pandemic, the company’s services proved to be even more essential as it gave eligible borrowers the financial support they required to survive and recover from the worst of the pandemic. Asialink indeed was one of the fortunate Filipino companies that managed to post stellar numbers, even amidst the public health and economic crises, with its net income surging by 142 percent to P520 million in 2021 from P215 million in 2020, on the back of some P10 billion in assets and P2.15 billion in revenues. Asialink’s solid numbers won it a “PRS A plus” with a stable outlook credit rating from the Philippine Rating Services Corp., indicating its “above average capacity” to meet its financial commitments. The banking community has also rewarded Asialink’s enviable track record with financial support, providing it with credit lines to rapidly expand its operations.
The mission of Asialink Finance Corporation is to support under-represented industries, especially MSMEs, by offering financial services. Asialink has provided innovative financial products and services that are specifically designed to meet the needs of small businesses, enabling MSMEs to flourish in the highly competitive market environment. Asialink Finance Corporation achieved a recent milestone by obtaining a P125 million credit line from KEB Hana Bank Global, which will increase its ability to provide loans to small firms in the Philippines. Creador, a Southeast Asian investment fund, contributed P4 billion earlier this year to acquire an 18% share in Asialink. Thus, keeping in line with these new investments and partnerships, they emerged victorious with twin titles as the Most Inclusive Financial Company to MSMEs Philippines 2024 and Most Accessible and Convenient Financing Company Philippines 2024 at the International Business Magazine Awards 2024.
Paving the Way
In the finance sector, Asialink Finance Corporation has established a standard for accessibility, ease, and inclusivity. Due to its fair and honest operations, the company has gained the trust of its clients and is now considered a preferred source for financing solutions. The accolades bolster their track records and demonstrate their willingness to keep improvising. It is critical to acknowledge the Philippines’ potential and resilience in the face of a changing global landscape as we negotiate the challenges of economic growth and development. The Philippines has the chance to start on a prosperous economic journey via ongoing cooperation, innovation, and good governance, opening the door for a better future for its people and companies.
Blog by Tamanna Shaikh
