GURGAON, India, April 20, 2016 /PRNewswire/ --
- Future growth of Philippines Pawnshop Market is expected to be led by a surge in the working sector of the country due to requirements of short term cash by salaried class and middle class families. This will also be bolstered by the continued zeal of domestic Filipinos to send money to their families especially at the times of festivals.
- The expansion strategies of several pawnshops such as Cebuana Lhuillier, M Lhuillier, Palawan Pawnshop and others, are likely to result in opening up of more locations offering cash remittance services and spreading up their network of pawning.
Ken Research announced its latest publication on "Philippines Pawnshop Market Outlook to 2020 - Convenience with Pawning and Remittance Services to Stimulate Growth" which provides a comprehensive analysis of the Pawnshops Industry in Philippines. The report covers various aspects such as market size of Pawnshop industry on basis of loan disbursed, volume of remittance transactions and number of pawnshops, segmentation on the basis of new and renewed transactions, repayment period, services provided, pawned items and by income source and detailed competitive landscape of major pawnshop players in pawning and money transfer segments. The report is useful for industry consultants and analysts, pawnshop managers and owners and new players venturing in the market.
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The poor functioning of the banks in Philippines have provided a higher popularity to other informal sources of credit such as pawnshops. Pawnshops these days have been growing at a remarkable pace in terms of their reach and the credit provided to the people. The major catalyst for the growth of pawnshops have been the minimal transaction costs on the part of borrower, easy and quick availability of loan and higher accessibility of pawnshops even under the remote areas of the country. The loan disbursed in 2015 augmented to PHP ~ billion. The increase in local migration over the years has been favorable to the growth of domestic money transfers. The total market for domestic remittances was valued at PHP ~ billion in 2015 out of which PHP ~ billion was catered by the pawnshops which witnessed expansion from PHP ~ billion in the year 2010.
According to the research report, the growth would be lower in terms of the loan disbursed through the pawnshops since banks in the Philippines are also looking forward to expand their reach to the far off places. The pawning market in the Philippines is projected to witness loan disbursed amount to grow at a CAGR of 15.9% during 2016-2020. The emergence of online pawning will also give a boost to the pawnshops market revenues from interest rates in pawning process. This is also expected to strengthen the competition in the pawnshops. The online pawnshop- PawnHero has partnered with 2GO and provides pick and drop facilities and other services through these 2GO locations as well, also the increasing smartphone and internet penetration has also heated up the scenario. Since every smartphone or internet connection can now be used as a pawnshop outlet in the country, widening the reach of the online pawnshop in the country.
The domestic remittance transactions through pawnshops in the Philippines are expected to grow at a CAGR of 7.6% from 2015 to 2020. However, owing to stiff competition resulting from price wars amongst several players, the market is likely to showcase a nominal growth in terms of revenues, as the average transaction charges are expected to decline in the coming years.
"The advent of online pawning with lower interest rates, longer lending time and greater ease of transactions will completely change the dynamic of pawnshop market in Philippines." according to the Research Analyst, Ken Research.
Key Topics Covered in the Report:
Philippines Pawnshop Market
Key Products Mentioned in the Report
Companies Covered in the Report
Related Reports:
Contact:
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249
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