More than 50% of Filipinos now own a financial transaction account

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More than half of the country’s adult population now owns a financial account, according to the results of the Bangko Sentral ng Pilipinas (BSP) 2021 Financial Inclusion Survey (FIS).

The survey results showed that account ownership surged to 56 percent in 2021, up from 29 percent in 2019. This increase is the highest two-year growth since the survey began in 2015. The expansion was spurred by the COVID-19 pandemic accelerating the 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,” said BSP Governor Felipe Medalla.

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The rise of account ownership was attributed to the uptake of e-money accounts, which climbed to 36 percent in 2021 from 8 percent in 2019. This became the most common type of account among adults in the middle class and low-income population, as well as with those aged 15 to 49 years old.

Meanwhile, the share of adults with a bank account also rose, almost doubling to 23 percent in 2021 from 12 percent in 2019. Banks remained the preferred formal institution for saving money by a third of those with savings, followed by cooperatives and microfinance institutions.

The 2021 upsurge in account ownership was generally evident across demographic segments.

The top gainers in terms of demographic segments were socio-economic class ABC, Mindanao, more educated (completed at least vocational or college), and adults aged 30 to 39 years old.

Socio-economic class, educational level, age, and geography drove account ownership disparities. In 2021, account ownership in socio-economic class ABC (80 percent) was almost twice that of class E (44 percent).

Account ownership among adults who completed at least college (80 percent) was more than twice that of elementary graduates (34 percent).

Similarly, the share of adults aged 30 to 39 years old with an account (65 percent) was more than twice that of younger adults aged 15 to 19 years old (27 percent).

Other income factors such as having a job, being a remittance-receiving household, owning a business, and receiving financial assistance from the government (i.e., Pantawid Pamilyang Pilipino Program or 4Ps) increased the likelihood of account ownership.

According to the FIS, six out of 10 Filipinos altered their financial behavior during the pandemic. Filipinos started saving more for emergencies (37 percent), began or increased their usage of online banking and digital payments (17 percent), and borrowed more (15 percent).

Certain segments that had significantly lower account penetration rates compared with the national average in 2019 likewise showed considerable improvements in 2021.

However, these segments continue to have lower account penetration rates compared with the 2021 national average of 56 percent, especially young and single adults as well as non-workers.

The FIS also showed that of those with mobile phones and internet access in 2021, 60 percent performed financial transactions online, such as fund transfers and payments, which is a considerable jump from 17 percent in 2019.

 

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