The Rise of Hyperlocal entrepreneurs and how Digital Banking enables it.
By Miong - Friday, July 10, 2020
Bank of the Philippine Islands (BPI) Chief Digital Officer Noel Santiago says
hyperlocal is all about residents buying and selling products among and within
their immediate communities. The COVID-19 situation that forced the world to
implement limited mobility and strict social distancing guidelines ushered the
emergence of a vibrant hyperlocal market.
Photo from BPI FB Page
Communities organized and created Facebook groups or Viber group chats
for their respective neighborhoods where they could freely advertise
home-baked bread and desserts, homecooked meals, fresh produce, seafood, and
meats. They purposely kept the trade within the community to limit the entry
of outsiders and simplify delivery and pick-up logistics.
Prior to the pandemic, more Filipinos preferred COD or cash-on-delivery
payments when ordering online. The hyperlocal market saw a shift to mobile and
online transfers as the preferred mode of payment.
Santiago added that digital transfers are feasible because there’s a certain
level of trust when you’re dealing with your neighbors. The temporary waiver
of InstaPay fees for transfers to other banks, coupled with people’s wariness
about touching cash that may have been handled by strangers, made digital
banking a great enabler for hyperlocal trade.
Being able to send and receive money transfers in real time from the safety of
their homes is much appreciated by BPI customers. Hyperlocal entrepreneurs
particularly liked being able to easily track incoming payments on their
phones or computers.
Santiago said that as mobility guidelines have become more relaxed, some of
these hyperlocal entrepreneurs may want to expand their market beyond their
immediate communities, which could give rise to the need for a modified mode
of payment.
“If you’re buying from a complete stranger, you may be wary about sending
money in advance, because if you don’t get your item, you can’t have that
reversed. This is why we’re looking for a digital solution to allow our
clients to do COD transactions digitally,”
said Santiago.
BPI is committed to provide its clients, especially the budding entrepreneurs,
with the digital tools to help them thrive in the new normal. He said they are
about to launch new features in the BPI Mobile app and BPI Online that will
help clients customize their accounts and organize their transactions more
easily.
“Surviving and thriving in the new normal requires sound planning and
adaptability. Having the right partners who can provide complementary
ecosystems for these businesses, no matter how big or small, are incredibly
important for their success,”
said Santiago.
