Digital-only bank account holders should be double-investigated
The number of Filipinos with digital-only bank accounts is expected to double in the next five years, according to a recent survey.
According to a dot-com’s “Digital Banking Adoption” report, 18% of Filipinos currently have a digital bank account and an additional 18% plan to open one within the next five years.
This means that 36% of Filipino adults, or roughly 26 million people, will have a digital-only bank account by 2026.
In 30 countries included in the survey, the Philippines ranks 12th for digital banking adoption, but over the next five years the country is expected to climb to 5th place.
The survey includes 30 countries, namely: Australia; Austria; Brazil; Canada; Denmark; Finland; France; Germany; Hong Kong; Hungary; Indonesia; Ireland; Italy; Japan; Malaysia; Mexico; New Zealand; Norway; Philippines; Poland; Portugal; Singapore; Spain; Sweden; Switzerland; The Netherlands; the United Arab Emirates; UK; Vietnam; and the United States.
Elizabeth Barry, global financial technology editor of Finder.com, said the large number of unbanked Filipinos gives the country space to expand its digital-only banking footprint.
“Estimates suggest that around 71% of Filipinos are currently unbanked and I suspect it is this part of the population that is considering opening accounts,” Barry said.
The survey also showed that Filipino men are more likely to have a digital bank account than women, with 20% of men versus 16% of women reporting having an account.
Earlier this year, the Bangko Sentral ng Pilipinas (BSP) announced that it was closing its window for the application of new digital banks in the country from September 1 of this year.
The Monetary Board (MB) approved the applications of six banks: Overseas Filipino Bank (OFBank), Tonik Digital Bank, Inc., UNObank, Inc., Union Digital Bank, GoTyme Bank and the latest being Maya Bank, Inc .,
BSP Governor Benjamin E. Diokno said based on their profiles that approved digital banks intend to serve Filipino migrant workers, underserved, unbanked and mass market people, but are open to venture into investments, insurance and payment services, to expand their reach. .