Many Filipinos are included in the unbanked population due to different reasons such as the cost of opening an account, lack of documentary requirements, and high maintaining balance.
The Bangko Sentral ng Pilipinas aims to help every Filipino to have formal bank accounts. The BSP said that having an account can encourage the owners to save and transact their money in a safe, affordable, and convenient manner.
Owning an account can also give access to various financial services like investments, insurance and credit. Through the basic deposit account scheme, Filipinos can open bank accounts without the burden of minimum deposit maintaining balance or extensive documentary requirements.
With this new system of opening an account, interested individuals can open an account for less than Php100. It also features simplified identification requirements and no dormancy charges. Likewise, the account maintenance cost is also reduced by granting a preferential zero percent reserve requirement.
In addition, the bank can customize their products so that they can serve wider markets. It also gives them the opportunity to bind with technological innovations while providing the necessary controls and implementing strictly the key features.
The basic deposit account system also supports the National Retail Payments System that encourages clients to adopt digital payments option. This means that Filipinos who will open the basic bank account will be able to engage in the digital finance ecosystem. They can also access electronic fund transfer for payments and remittance.
The main target clients of this basic banking system are those who belong in the low-income markets.