The report titled "Philippines Pawnshop Market Outlook to 2020 –

Convenience with Pawning and Remittance Services to Stimulate

Growth" 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. The report also entails detailed
competitive landscape of major pawnshop players in pawning and
money transfer segments along with the Government rules and
regulations governing the market. An analysis of the future of
Pawnshops market in the Philippines is provided on the basis of loans
disbursed and volume of money transferred over next five years.
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 loan disbursed
in 2015 augmented to PHP ~ billion on the account of advent of online
pawning in the country which is a new advancement. Lack of credit
facilities, lower credit card penetration and incomplete credit histories
has prompted the borrowers to resort to the pawnshops since they
require just a valid identity proof and collateral to provide the credit. The
number of pawnshops in the Philippines was registered at ~ as of
December 2015. The lower income class and the middle income class of
the Filipino society are primarily served by the pawnshops for their
remittance and easy credit requirements since this population cluster
constitute the unbanked members of the population.
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. The apex hospitals and universities, jobs,
premier institutions and business districts are located in Metro Manila.
Migrants have come to Manila in massive proportions, particularly in
search of employment and better career opportunities. Owing to this,
Metro Manila has accounted for the highest share of remittances in the
past years, in terms of origin of money transfers from this region.
Eastern Visayas, Bicol, Northern Mindanao, CARAGA and Zamboanga
Peninsula were the regions with a high percentage of underemployed
Filipinos. Owing to this, a high percentage of domestic remittances,
which majorly originated from Metro Manila, were sent to these regions.
With the rising penetration of internet in Philippines, the country has
observed a new trend for online pawning. The country saw the launch of
its first online pawnshop named PawnHero in 2015 in partnership with
2GO. The internet penetration in the country has increased at a startling
rate from ~ % in 2009 to ~ % in 2015.
The unbanked Filipinos also use pawnshops for paying various kinds of
bills. Although till now pawnshops are not much preferred for payment
of bills, however the ubiquity of pawnshops will make certain the
growth of bill payment services through pawnshops. The average
transaction fee paid by the Filipinos for making bill payments has ranged
between ~ pesos to ~ pesos at the pawnshops.
Insurance through pawnshops has been a newer segment for the
pawnshops and yet at its nascent stage. The pawnshops have been
providing low cost insurance services ranging from just PHP ~ to PHP
~. The insurances provided by the pawnshops usually come in the
combination of different kinds of services such as accident, death, burial
assistance and others. These policies vary from 3 to 12 months. The
pawnshops have been providing these services in tie ups with certain
insurance companies such as Palawan pawnshop with UCPB General
Insurance Co., Inc, RD pawnshop with Malayan Insurance and others.
In 2015, only ~ pawnshops were indulged primarily into pawning while
other ~ pawnshops were also providing the auxiliary services, along with
pawning services. It is further expected that with the government efforts
to maintain financial inclusion with the help of pawnshops and
improving image of pawnshops, higher number of pawnshops will
initiate providing auxiliary services along with the pawning services.
 It has been observed that as of 2015, jewellery (especially gold or gold
plated) stood as the most pawned item in the pawnshops. This is majorly
due to the fact that jewellery is usually the most valuable thing that a
person owns and it is always fashionable. Moreover jewellery generally
has a sentimental value attached to it. Jewellery holds around ~ % share
in the total pawned items as per 2015.
It has been observed that in a critical pawnshop, ~ % of the transactions
are the new transactions and the other ~ % of the transactions are for the
renewal of the previous pawn transaction, even though most pawnshops
charge higher interest rates for renewal of the pawn transaction. This is
due to lack of liquidity with the borrowers at certain times which curb
their paying power and hence they extend the ongoing pawning
transaction.
The market is further expected to reach PHP ~ billion in 2020 from PHP
~ billion in 2015 in terms of loans disbursed and PHP ~ Billion in 2015
to PHP ~ billion in 2020 in terms of volume of remittance transactions.
Key Questions Answered by Report

 What is Potential of Pawnshops by Services in Future by 2020?

 What are the Changes Required in the Pawning Process to reduce Non-
Performing Assets?
 What are the opportunities for online pawning business in the
Philippines?
 What is the average transaction size and number of remittance
transactions by Major Pawnshops?
 What are the major flow corridors with transaction volumes in the
Philippines?
 What is the split of Pawning loan disbursed by Pawned Items?
Key Topics Covered in the Report

 The market size of the Philippines Pawnshop Market on the basis of

Loan Disbursed, 2010-2015
 The market size of the Philippines Pawnshop Market on the basis of
Total Volume of Money Transfer Transactions, 2010-2015
 Market segmentation of Philippines Pawnshop Market by Major Flow
Corridors, 2010-2015
 Market segmentation of Philippines Pawnshop Market by Income
Source, 2010-2015
 Market segmentation of Philippines Pawnshop Market by Head Offices
or Branches, 2010-2015
 Market segmentation of Philippines Pawnshop Market by New or
Renewed Transactions, 2010-2015
 Market segmentation of Philippines Pawnshop Market by Pawned Items,
2010-2015
 Market segmentation of Philippines Pawnshop Market by Replacement
Period, 2010-2015
 Market segmentation of Philippines Pawnshop Market by Services
Provided, 2010-2015
 Trends and Developments in Philippines Pawnshop Market
 Government Rules and Regulations Governing Philippines Pawnshop
Market
 Growth Drivers for the Philippines Pawnshop Market
 Market Share of Major Players in Philippines Pawnshop Market, 2015
 Company profiles of major players in the Philippines Pawnshop Market
 Snapshot of Online Pawnshop Market
 Snapshot of Bill Payments via Pawnshops
 Snapshot of Insurance via Pawnshops
 Future outlook and projections on the basis of Loan Disbursed and
Volume Of Money Transfer Transactions in Philippines Pawnshop
Market, 2015-2020
 Cause and Effect Relationship between Industry Factors and Growth of
Industry
 Analyst Recommendations for Philippines Pawnshop Market
 Macro Economic Variables affecting Philippines Pawnshop Market