Bangko Sentral ng Pilipinas Post Significant Jump of Filipino Adults with Bank Accounts

The number of Filipino adults with bank accounts has increased to 56% in the first quarter from 29% last 2019, according to the 2021 Financial Inclusion Survey of the Bangko Sentral ng Pilipinas (BSP). The number doubled from 20.9 million, increasing to 42.9 million. This would mean that an additional 22 million accounts were opened between 2019 and 2021. As a result, the number of Filipinos without bank accounts would drop to 34.3 million from 51.2 million.

Comparatively, the percentages of Filipino adults with bank accounts in 2021 were higher compared to other ASEAN nations. Generally, the 2021 World Bank Global Findex presented other ASEAN nations’ percentages: Cambodia (33%), Laos (37%), Myanmar (48%), Indonesia (52%), Malaysia (88%), Thailand (96%), and Singapore (98%).

BSP Governor Felipe Medalla stated that the pandemic was a catalyst to push for the expansion and use of digital payments. “Amid the latest figures, the BSP will continue to broaden its efforts to foster the wider adoption of digital technology, which has effectively enabled the onboarding of more Filipinos into the formal financial system,” explained Medalla.

The increase was the highest two-year growth since the BSP survey began last 2015. It estimated the adult population in the Philippines to be around 77.2 million in 2021. A possible reason for the spike in account ownership is due to the uptake of e-money accounts which also increased to 36% from 2019’s 8%. Additionally, the share of adults with a bank account almost doubled to 23% from 12% with banks still being the preferred institution for purposes of saving money. This is followed by cooperatives and then microfinance institutions.

According to the survey, six out of 10 Filipinos changed their financial behavior due to the pandemic. Percentages show that 37% started saving more for emergencies, 17% began or increased their usage of online banking and digital payments and 15% started borrowing more. These percentages could possibly be due to Filipinos’ easy access to the internet using their smartphones as about 60% of financial transactions have transitioned online. These transactions include fund transfers and payments.

Source: PhilStar