Over 52M Pinoys still unbanked – BSP
Required deposits and supporting documents are a huge turn-off for Filipinos to get into the banking system.
Majority of Filipinos still remain outside the formal financial system. According the to a Bangko Sentral ng Pilipinas (BSP) survey, 52.8 million Pinoy adults still do not own an account, versus the 15.8 million who own one.
“For the 52.8 million adults who do not have an account, 60% reported not having enough money as the main reason, followed by the perceived lack of need (21%) and absence of documentary requirements (18%). Other reasons cited are high cost (10%), lack of knowledge in account opening (9%), lack of work (8%), and lack of awareness (8%),” the central bank said in a statement.
What’s more, there is low usage of these accounts. More Pinoys have savings at 48 percent, but most of them don’t use banks to store their money.
“While formal account penetration remains low and growth is modest, there are opportunities for greater financial inclusion enabled by digital technology,” the BSP said.