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April 19, 2024

Basic deposits rise 8.5% to P5.1B from P4.7B

The Bangko Sentral ng Pilipinas (BSP) reported an 8.5 percent increase in basis deposits to P5.1 billion from P4.7 billion in 2020 as the central bank ramps up financial inclusion efforts.

The central bank reported a 20 percent jump in the number of low cost, no frills deposit accounts to 7.9 million from 6.6 million, with 138 banks are now offering the low cost and no frills deposit accounts.

The basic deposit account (BDA) was created to meet the needs of the unbanked and low-income sector and foster greater financial inclusion. 138 banks are now offering BDAs.

Introduced in 2018, the BDA is a deposit product that has a low account opening balance requirement of P100 or less, no maintaining balance, no dormancy charges, and simple identification requirements. Banks can customize their BDA products by utilizing technological innovations to on-board and service clients.

The BSP continues to promote BDAs through enabling policy issuances. In November 2021, the BSP issued regulatory relief measures to encourage more banks to offer a BDA. In January 2022, the BSP issued Frequently Asked Questions to provide additional guidance and clarifications on the regulatory framework for BDAs.

Since ownership of an account is an important first step to perform digital payments, BDAs support BSP’s mutually reinforcing goals of financial inclusion and payments digitalization.

Under its Digital Payments Transformation Roadmap, the BSP aims to increase the number of Filipino adults with bank accounts to 70 percent and convert 50 percent of total retail transactions to electronic channels by 2023.