In the Philippines, 70% of the people who are of age do not have a bank account. Majority of people, even if they do have some savings and extra money every month choose to save them in a traditional way and not through banks.
The reasons behind this are that banks used to have a high standard when approving people who are applying for bank accounts.
Other than that, the opening amount for accounts is higher than what ordinary Filipinos can afford, add to that the maintaining balance and the dormant fees of the bank.
Banko Sentral ng Pilipinas shared their good news through ABS-CBN. Now you can already open a bank account even with less than P100 opening balance.
The basic deposit account framework of the BSP allows applicants to open a bank account even with less than P100. Requirements were also changed to something that is easier to achieve.
Pia Tayag, the Director of BSP Inclusive Finance Advocacy Office said that the most common problem of clients who are being declined are their IDs. Now, they can already apply for a bank account with a letter that promises that they will acquire their ID in a given timeframe.
“Ang problem kasi walang ID. Pwedeng reduced to writing. Isulat nila ang pangalan nila, yung address nila, tapos within a certain period of time, kukuha ng ID. Pero, na-on board na yung client.”
Included in the basic deposit account framework is the removal of the maintaining balance that is a big reason why people choose not to open a bank account in the first place. They want to be able to get their money without thinking about the account in times of emergencies.
The dormancy charge, or the penalty that banks get when an account has no deposit or withdrawal for a long time, is also lifted.
BSP is hoping that these changes will encourage people to set up their bank accounts.