Number of Filipinos having finance accounts growing, says BSP | Inquirer Business
Close  

Number of Filipinos having finance accounts growing, says BSP

By: - Reporter / @daxinq
/ 04:35 PM July 17, 2020

Almost a third of Filipinos now have financial accounts, up from slightly less than one-fourth of the population only two years ago — a level that is expected to rise further due to the government-imposed lockdown to fight the COVID-19 pandemic, the central bank said.

In a statement, the Bangko Sentral ng Pilipinas (BSP) said the share of adults who own accounts climbed to 29 percent in 2019 from 23 percent in 2017, according to the recently released results of the latest BSP Financial Inclusion Survey.

ADVERTISEMENT

Having an account in a formal institution—banks, electronic money issuers and microfinance institutions—is a basic indicator of financial inclusion.

The latest survey was conducted in February to March 2020 just before the enforcement of the enhanced community quarantine in response to the COVID-19 crisis.

FEATURED STORIES

“Accordingly, the survey results, even as they already suggest significant progress, do not yet reflect the accelerated adoption of digital financial services seen in the midst and in the wake of the pandemic,” the BSP said.

The 6-percentage point increase in account penetration represents an additional 5 million Filipinos opening an account within that two-year period, a marked improvement from the 0.6 percentage point growth in 2017 from 2015.

Growth was largely driven by e-money accounts which rose to 8 percent in 2019 from 1 percent in 2017. Microfinance accounts also grew from 8 percent in 2017 to 12 percent, on par with bank accounts which barely moved from 11.5 percent in 2017.

“As uptake of e-money accounts significantly grew, so did the share of account holders who use their account for payment transactions – such as fund transfers and bills payment – which more than doubled to 39 percent in 2019 from 18 percent in 2017,” the BSP said.

Account ownership among the poorest (class E) almost doubled from 14 percent in 2017, well below the 23 percent national average that year, to 27 percent in 2019, closer to the national average of 29 percent.

The top income group (class ABC) posted an account penetration of 43 percent which is almost twice higher than in class E.

“While still significant, the account penetration gap in socio-economic class has considerably narrowed in 2019 compared to 2017 where class ABC posted account penetration almost four times higher than class E,” it said.

ADVERTISEMENT

The number of Filipino adults who are unbanked is estimated at 51.2 million, out of a total adult population of 72 million in 2019.

Lack of funds remains the top reason for not having an account, as reported by 45 percent of the unbanked. This is followed by perceived lack of need for an account (27 percent) and lack of documentary requirements (26 percent).

The survey revealed that only 40 percent of adults are aware of the basic deposit account, a low-cost, easy-to-open bank account introduced as a policy initiative of the BSP in 2018 designed to address the cited barriers.

TSB

For more news about the novel coronavirus click here.
What you need to know about Coronavirus.
For more information on COVID-19, call the DOH Hotline: (02) 86517800 local 1149/1150.

The Inquirer Foundation supports our healthcare frontliners and is still accepting cash donations to be deposited at Banco de Oro (BDO) current account #007960018860 or donate through PayMaya using this link .

Read Next
Don't miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: ‘financial inclusion’, #COVID19PH, accounts, Banking, BSP, central bank, coronavirus, data, pandemic
For feedback, complaints, or inquiries, contact us.


© Copyright 1997-2021 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.