American Express announced a new program with Philippines exclusive Amex issuer BDO to create an online shopping portal for consumers to buy goods from US and UK merchants, and alleviate shipping concerns that hamper e-commerce development.
Rolando C. Tanchanco, executive vice-president for the BDO consumer lending group, noted that out of the 28 million Filipinos online, only about a million engage in online transactions.
“This presents a huge opportunity for us to educate the market,” Mr. Tanchanco said.
With inter-region shipping constraints for a number of stores, online purchases are often delivered to relatives abroad and then shipped in bulk to the country.
The new service will provide customers an international address for goods purchased in the US and the UK, with the opportunity to consolidate purchases to save on shipping costs.
In addition to providing a unique consumer service, this capability may help grow consumer lending experienced by BDO and other banks.
As the status of corporate lending in the country flatlines with conglomerates flocking to other funding sources such as the capital and stock markets, banks have been increasingly positioning themselves to cater to the consumer lending market.
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