Globe Telecom Inc.’s mobile wallet service GCash saw a significant growth in transaction volume on its mobile-first savings product last July.
Latest data from GCash showed total transactions of GCash Save Money, which allows Filipinos to own a personal savings account through their mobile phones, skyrocketing by 900 percent year-on-year in July alone, driven by an exponential increase in deposits and withdrawals.
GCash Save Money functions as a normal savings bank account but unlike traditional banking, opening a savings account removes the hassle of providing a long list of documents and going to a physical bank branch.
Most of the traditional banks require a minimum of P2,000 to maintain and keep user accounts open, but with GCash Save Money, users have democratized access to savings as there is no need to maintain balances to be able to open and keep their accounts. A GCash user can open a savings account and can deposit any amount later.
In addition, Globe said GCash Save Money has the best interest rate in the country at 3.1 percent per year, giving users more value than traditional financial institutions which offer an average annual interest rate of 0.25 percent.
GCash Save Money also offers attractive promos and benefits such as free insurance and the special 4 percent interest rate for account holders with savings amount of P100,000 and over, it added.
“The gradual shift of the people to do mobile banking and digital savings during these challenging times brings us closer to our goal of leading the Philippines to a more cashless lifestyle that provides them access to various digital financial tools and services available – an environment where financial inclusion thrives,” Martha Sazon, GCash president, said.
At present, seven out of 10 Filipinos still do not have formal bank accounts. Unbanked Filipinos are vulnerable to inflation and the highest borrowing rates such as the 5-6 scheme, and have very limited options to none in growing their finances.
GCash Save Money is powered by CIMB Bank Philippines, insured by the Philippine Deposit Insurance Corp. for up to P500,000 and is regulated by the Bangko Sentral ng Pilipinas which ensures a safe, secure and convenient way of banking for Filipinos.
Globe Fintech Innovations Inc. (Mynt), which operates GCash, is part of the portfolio of companies of 917Ventures, the largest corporate incubator in the Philippines wholly-owned by Globe. — Myla Iglesias