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77% of Filipinos remain unbanked — 2017 BSP Financial Inclusion Survey

Metro Manila (CNN Philippines, July 11) — Around 77% of Filipino adults do not have bank accounts, according to the latest survey by the Bangko Sentral ng Pilipinas (BSP).

In its 2017 Financial Inclusion Survey (FIS), the central bank announced that only an estimated 15.8 million adult Filipinos, or 22.6 percent, have bank accounts, while an approximate 52.8 million, or 77.4 percent, remain unbanked. Ownership of a bank account that can be used to save and receive money, as well as pay bills, is a basic indicator of financial inclusion.

Last year’s results were only marginally better than the 22 percent of the population with bank accounts recorded in the 2015 maiden survey.

For those who do not have bank accounts, 60 percent of them cited not having enough money as a reason, while 21 percent did not not cite any reason at all. Meanwhile, 18 percent of the respondents said they do not have documentary requirements to open an account.

Other reasons cited for not having a bank account are: high cost of opening a bank account (10 percent), lack of knowledge on how to open an account (9 percent), joblessness (8 percent) and lack of awareness (8 percent).

As for an approximate breakdown of the 22.6 percent of adults who do own bank accounts, 11.5 percent of them are in the formal banking sector. Around 8.1 percent are in non-government microfinance organizations, 2.9 percent are in cooperatives, and 0.3 percent are in non-stock savings and loan associations.

Only 1.3 percent of adults have electronic (e-money) accounts. The survey took into account how one person may have several accounts on different platforms.

On the other hand, the top cause cited for having bank accounts is to save in case of an emergency (42 percent), followed by saving for an education (31 percent) and for business (29 percent). Other uses are for safekeeping (23 percent) and as a form of investment (12 percent).

Only 18 percent of the banked population use their accounts to receive salary, 12 percent for sending and receiving money, and 6 percent for receiving their pension.

The survey also found that women are twice as likely than men to own an account, particularly in non-government microfinance organizations and cooperatives.

“Whereas most developing countries face the persistent challenge of women’s financial exclusion, the Philippines presents an interesting case wherein the level of financial inclusion is significantly higher among women than men,” the BSP said.

Moving forward, the BSP plans to push through with more digital finance programs to reach out to the unbanked population.

“While formal account penetration remains low and growth is modest, there are opportunities for greater financial inclusion enabled by digital technology,” the BSP said, citing how accounts are underutilized for remittance and payment transactions.

According to the survey, 70 percent of Filipinos cite convenience as a key factor in choosing a channel for remittance transactions. Other factors considered are cheaper charges, physical access points, and faster services.

However, 46 percent of account holders who have access to the internet are wary of e-payment platforms due to issues such as hacking and data security.

“The BSP therefore aims to develop a digital finance ecosystem that supports the diverse needs of all users in a manner that is secure, sustainable, convenient, and affordable,” the BSP said.

The BSP will continue the implementation of its National Retail Payment System, which set policies, standards and governance principles in digital retail payment operations and structures.

Click here to download the 2017 Financial Inclusion Survey by BSP.

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USAID E-PESO’s Philippine Institutional Payments Baseline Survey (Highlights of Results)

The Philippine Institutional Payments Baseline Survey undertaken by USAID E-PESO Activity provides data on awareness, usage, intention to use and value of e-payments among businesses and government corporations in the country. The study is based on a survey on the payment behavior of businesses and their propensity to shift to electronic payments (e-payments).

The data will shed light on the common payment transactions of businesses and government corporations, what instrument they use for each transaction and through which channels they make their payments. Results of this study will be beneficial for the public and private sector alike. Providers of e-payment products and services can learn about how to improve their service offerings, product design, and partnership approach to drive further usage. Policymakers, for their part, can glean on the concerns of consumers/businesses about digital payments and channels and how regulations can help ease those constraints.

The study highlights can be downloaded from this link.

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From PayMaya website

PayMaya targets double digit user growth this year as it targets millennials

PayMaya Philippines Inc., formerly Smart e-Money, Inc., is targeting double-digit growth in users this year, as it further expands its presence both here and overseas.

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BSP Deputy Governor Diwa Guinigundo told members of the Credit Management Association of the Philippines (CMAP) the Philippines is ready for the technological breakthroughs under the Fourth Industrial Revolution. Photo and caption from Philippine Star

BSP adopts multi-pronged approach for technology

The Bangko Sentral ng Pilipinas (BSP) has adopted a multi-pronged approach to deal with the impact of technology on economic growth, stability and financial inclusion.

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Pioneering digital access to finance for farmers. In photo are FINTQ Managing Director Lito Villanueva, Voyager President and CEO Orlando B. Vea, PLDT, Smart, Voyager and FINTQ Chairman Manuel V. Pangilinan, Producers Bank Chairman and Chief Executive Officer Andres M. Cornejo, Producers Bank Board Director Gilda E. Pico, and Producers Bank President and Chief Operating Officer Manuel A. Castañeda III. Photo from Manila Bulletin

ASEAN’s first digital agri crop loans set to launch via Lendr

Starting next month, farmers can already apply for loans which could help them finance and increase their farm production, through the country’s first mobile-based digital agricultural crop loan service offered by thrift bank Producers Savings Bank Corporation (Producers Bank) via Lendr, FINTQ’s award-winning and pioneering digital lending platform.

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