PH ranks 2nd in digital patience in Asia-Pacific

Filipinos are the second most digitally patient consumers in the Asia-Pacific region, according to a new study by customer engagement platform Twilio, which measured how long consumers are willing to wait for online customer service issues to be resolved.

The Philippines trails only Indonesia, with 76 percent of Filipino consumers saying they remain patient when dealing with automated customer service, well above the regional average of 68 percent.

This translates to an expected resolution window of 27.3 minutes among Filipinos, longer than the regional average of 24.4 minutes. In practice, the Philippines waits longer than any other market surveyed, with actual waiting times averaging 31.9 minutes.

“Filipino consumers are patient because they start with a deep sense of trust, but this trust is a foundation that brands must either build upon or risk breaking,” said Nicholas Kontopoulos, vice president of marketing for Asia Pacific and Japan at Twilio.

Despite these delays, speed is not the dominant concern for many Filipino consumers, the study found.

Half of the respondents said clear and easily understandable instructions were their top priority when dealing with digital customer service channels.

Data security and fast issue resolution were also important factors, with 41 percent of Filipinos saying the protection of personal information and quick service were essential to their trust in a brand.

Another key expectation is warmth in digital interactions, with more than a third of respondents saying automated systems should reflect the friendliness and empathy of human agents.

The study “Decoding Digital Patience” was conducted between August and September 2025 and covered 7,331 respondents across seven Asia-Pacific markets. These include 1,007 respondents in the Philippines.

Varying patience

Twilio’s study showed patience varies significantly depending on the issue being addressed.

Filipino consumers were more understanding of delays involving complex or high-stakes concerns, particularly in healthcare, where longer resolution times were deemed necessary.

Patience declined sharply, however, in routine and everyday interactions that fell short of expectations.

High levels of frustration were reported during telecom service outages (69 percent), cases involving incorrect or damaged items (68 percent), billing disputes (68 percent) and delayed or missed retail deliveries (66 percent).

Filipinos belong to one of the markets most exposed to artificial intelligence (AI) in customer service, with 81 percent reporting they have interacted with an AI-powered tool before.

Despite this high exposure, satisfaction among Filipino consumers remains mixed, with 42 percent reporting frustrations stemming from scripted responses, generic answers and unresolved issues.

As a result, 43 percent of Filipinos said they prefer to begin customer support interactions with a human agent, even if it means waiting longer.

Source: Inquirer

Philippines lags behind SEA peers in digital government readiness

The Philippines continues to trail several of its Southeast Asian peers in digital government readiness, reflecting uneven progress in the country’s push to modernize public services through technology.

In the Organisation for Economic Co-operation and Development’s (OECD) latest Digital Government Index (DGI), the Philippines scored 0.28 out of 1. The country ranked third-lowest among the eight Southeast Asian countries that the study covered.

The OECD’s DGI draws on data from Brunei, Cambodia, Laos, Malaysia, the Philippines, Singapore, Thailand and Vietnam, collected between September 2024 and February 2025.

The index was presented in Government at a Glance: Southeast Asia 2025 in cooperation with the Asian Development Bank.

This placed the Philippines below the regional average of 0.37. The Southeast Asian average itself lags the OECD member-country average of 0.61.

“Governments can improve their agility and policy impact by putting digital transformation at the heart of modernization efforts,” OECD said.

The index benchmarks how governments integrate digital technologies and data into policymaking and public service delivery across six dimensions. These are digital by design, data-driven public sector, government as a platform, open by default, user-driven services and proactiveness.

The Philippines recorded a low score of 0.36 in “digital by design,” also placing it third lowest among its regional peers.

This suggests that while digital initiatives exist, they are not yet consistently built into the core design of government operations.

“Setting a strategic vision and clear mandate for digital government is a prerequisite to steer digital government initiatives, and for facilitating more effective and inclusive cross-sector collaboration,” the OECD said.

The group added that all of its surveyed Southeast Asian countries have a mandated government institution or formal coordination body on digital government.

For its part, the Philippines, through the Department of Information and Communications Technology of the Philippines, has developed a National ICT Government Agenda and a Digital Government Masterplan for 2023 until 2028.

4th highest

The Philippines also ranked fourth-highest in proactiveness, with a score of 0.26. The OECD said this could be further improved through the adoption of artificial intelligence (AI), an area where Southeast Asia as a whole continues to lag.

“The adoption of AI can help governments become more proactive. Used strategically and responsibly, governments can leverage AI to enhance public sector productivity, responsiveness and accountability,” the OECD said.

Only three countries in the region currently have a national strategy or agenda that references the use of AI in the public sector, including the Philippines, according to the report.

However, the OECD said the Philippines has yet to deploy AI systems in government operations and does not have binding or non-binding instruments in place to guide the responsible use of algorithms in the public sector.

At the regional level, the Association of Southeast Asian Nations published a guide on AI governance and ethics last year to support member states in developing common principles and safeguards.

More recently, President Marcos Jr. said the Philippines should fully utilize AI to help drive national development, including through legislation, signaling potential policy momentum in the coming years.

Mr. Marcos also approved in May the National Artificial Intelligence Strategy for the Philippines. The Department of Science and Technology initiated this effort.

Report:

OECD (2025), Government at a Glance 2025, OECD Publishing, Paris, https://doi.org/10.1787/0efd0bcd-en.

Source: Inquirer

Almost 60% of Philippine retail payments now digital

Nearly three of every five retail payment transactions in the Philippines were done digitally in 2024, smashing the government’s target for last year amid a strong regulatory push to transform the country into a cash-lite society.

Latest data from the Bangko Sentral ng Pilipinas (BSP) showed digital payments cornered 57.4 percent of the total volume of retail transactions, up by 4.6 percentage points from the 2023 ratio of 52.8 percent.

Such a result surpassed the government’s 2024 goal to convert 52 to 54 percent of retail transactions to digital. In terms of value, total monthly digital payments reached $136 billion last year, accounting for 59 percent of the nation’s overall retail transaction value.

“These figures reflect the continued shift toward digital channels and the growing trust of Filipinos in using digital financial services,” BSP Governor Eli Remolona Jr. said.

“We continue to promote enabling technologies, such as interoperable payment systems, e-wallets and mobile banking platforms, which serve as bridges to greater financial inclusion,” Remolona added.

According to the Bank of International Settlements, a 1 percentage point increase in digital payments use is associated with 0.10 percentage point growth in gross domestic product per capita and 0.06 percentage point decline in informal employment.

Dissecting the BSP’s report, 97.2 percent of transactions made by the government were done via digital channels, the most cash-lite among the three primary payment use-cases that the central bank tracks. The BSP said almost 100 percent of payments made by the state—including capital transfers to municipalities, procurements, payroll and cash transfers to the poor—were done electronically.

Meanwhile, the share of digital payments made by individuals rose to 72.2 percent. The BSP said this was accompanied by a decline in the proportion of cash payments.

Over the past years, the central bank said payments collected by businesses from customers have been the main driver of retail digital payments. Figures showed the share of merchant payments that were done via electronic platforms had grown to 66.4 percent last year.

Person-to-person electronic fund transfers had the second-largest contribution to total digital transactions at 20.6 percent, bigger than its 2023 share of 19.3 percent. Lastly, business-to-business payments pitched in 6.2 percent to the overall volume of digital transactions—which the BSP described as “modest” growth.

BSP deputy governor Mamerto Tangonan said the regulator was working to ensure that the shift to cashless payments does not come at the cost of consumer protection or systemic stability. The next goal of the central bank is to digitalize 60 to 70 percent of retail payments in the country by 2028.

“Even as we pursue this goal, we are cognizant of the risks. Safety in payments, whether digital, physical or cross-border, is nonnegotiable,” Tangonan, head of the central bank’s payments and currency management sector, said.

“We are committed to having a regulatory environment that is vigilant, agile and informed. One that works alongside innovation, not to stifle, but to guide its responsible use,” he added.

Source: Inquirer