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June 22, 2024

Basic Deposit Accounts soar to 21.9 million in Q1

In the first quarter of 2023, the Philippines witnessed a substantial surge in the number of Basic Deposit Accounts (BDAs) to 21.9 million, a significant rise of 170 percent from the 8.1 million reported during the same period in 2022, as confirmed by the Bangko Sentral ng Pilipinas (BSP).

Collective BDA deposits also witnessed remarkable growth, reaching P27 billion, marking a 432 percent increase compared to the P5.1 billion recorded in the previous year.

This impressive growth can be attributed in part to the conversion of transaction accounts opened under the Philippine Identification System (PhilSys) co-location strategy in the fourth quarter of 2022, resulting in an additional 7.5 million BDAs.

The BDA, introduced by the central bank in 2018, is specifically designed to cater to the financial needs of individuals without bank accounts or those with limited incomes. It offers features such as a minimal initial deposit requirement of P100 or less, straightforward identification requirements, no mandatory minimum balance, and no fees for account inactivity.

Through BDAs, more Filipinos can access interest-earning savings accounts in selected banks, backed by insurance from the Philippine Deposit Insurance Corp. As of now, 158 banks in the country offer BDAs, including universal banks, commercial banks, rural banks, thrift banks, cooperative banks, and one digital bank.

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