Positive financial outlook
With the end of the year just a day away, looking back on how some things went in the country in the past 12 months may not be something to be happy about.
As if the natural and man-made calamities that hit several parts of the Philippines were not bad enough, the public had to endure seeing the hard-earned money they paid as taxes go to the pockets of corrupt government officials and private contractors involved in, among others, “ghost” and substandard flood control projects.
Knowing how our justice system works, it is a big question mark whether those who participated in the trillion-peso heist of taxpayers’ money would be held accountable for their actions.
With their gargantuan loot, they have the means to pay for the services of lawyers who would be willing to go all out, even to the extent of manufacturing evidence, to get them off the hook.
Barring any meaningful change in our political system, this scandal would, in all probability, go the way of its earlier versions that blew hot at the beginning and then were forgotten with the guilty parties going scot- free.
Amid the gloomy outlook, there are certain developments on the financial front involving the youth that may be cause for optimism about the coming year.
According to a survey conducted in October by the Digital Bank Association of the Philippines among customers of six digital banks, more Filipinos are becoming financially savvy in using digital banks.
Although brick-and-mortar banks with digitally based operations still dominate the banking industry, digital banks have found a steady market among millennials and Generation Z Filipinos who grew up when the internet, Wi-Fi and similar technological advances were widely used in private and commercial activities.
This development augurs well for the economy as it makes available more sources of funds for investments and other commercial activities.
It is heartening to note that these banks are in friendly competition among themselves to make their products and services more attractive to their target market, who can move their deposits around at the flick of a finger.
The name of the game at present in this financial field is easier access, faster turnaround and more attractive interest rates.
Corollary to the finding on digital banks, a survey made by Metrobank in the same month showed that 21 percent of Filipinos save primarily to build an emergency fund or set aside money for future contingencies.
The intended objective of the savings, e.g., personal purchases, travel and retirement funds, depends on the age and financial situation of the saver. For obvious reasons, the concerns are generation-based.
This finding is consistent with the 2021 survey conducted by the Bangko Sentral ng Pilipinas, which showed that approximately four in five savers allocate funds for emergencies.
What makes this finding interesting (and hopeful) is that it goes against the grain of the common perception among the older generation that the majority of young Filipinos are hooked on the Yolo (you only live once) mentality, which encourages them to enjoy life today as much as they can while they have the means or are able to do so.
This is like saying that what counts is the present because the future will take care of itself.
If the spending attitude among Filipinos who have substantial disposable income maintains its course, this could be a matter for serious concern by businesses whose viability depends a lot on their patronage.
That’s a minor glitch that can be easily overcome by those businesses, but what is significant is, this change in spending outlook by the largest sector of our society and upon whom the future of the country rests will, in the long run, redound to the benefit of our country.
Happy New Year!
