Diokno: 2.2-million Filipinos got basic deposit account

By Bianca Cuaresma, Businessmirror, 8 Jan 2020

THE simplified version of the standard deposit account yielded more than 2 million account holders 18 months after its implementation, the Bangko Sentral ng Pilipinas (BSP) governor reported.

In a speaking engagement on Tuesday, Central Bank Governor Benjamin E. Diokno said about 2.2 million account holders benefitted from the BSP’s basic deposit account—a big leap toward their campaign on financial inclusion.

The BSP launched the basic deposit account in January 2018 in an effort to target the unbanked sector of the economy.

While a 2014 study showed that the usual barriers to account opening include costs, lack of money, lack of documentary requirements and perceived low utility of a bank account, the BSP said the basic deposit account framework addresses these observed barriers.

The key features of the basic deposit account include: simplified know-your-customer requirements; an opening amount of less than P100; no minimum maintaining balance; and no dormancy charges.

To prevent misuse of the basic deposit account, the BSP also set its maximum balance is set at P50,000. These features meet the needs of the unbanked for a low-cost, no-frills deposit account which they can open even if they do not have the standard identification
documents.

Diokno said the program was implemented by 113 banks nationwide as of the first half of 2019.

The basic deposit account supports the implementation of the National Retail Payments System that aims to increase adoption of digital payments in the country.

By having a transactional account, the previously unbanked will be able to participate in the digital finance ecosystem and benefit from electronic fund transfers for their remittance and payment needs.