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Business

Basic deposit accounts swell to P36.7 billion – BSP

Keisha Ta-Asan - The Philippine Star
Basic deposit accounts swell to P36.7 billion � BSP
Based on data from the Bangko Sentral ng Pilipinas (BSP), the total number of BDA holders grew by 58 percent to 24.2 million in the fourth quarter of 2023 from 15.3 million in the comparable period a year prior.
Businessworld / File

MANILA, Philippines — The total value of banks’ basic deposit accounts (BDA) reached P36.7 billion in the last quarter of 2023, three times higher than the P11.96 billion in the same period a year earlier, as more Filipinos opened these low-cost, no-frills deposit accounts.

Based on data from the Bangko Sentral ng Pilipinas (BSP), the total number of BDA holders grew by 58 percent to 24.2 million in the fourth quarter of 2023 from 15.3 million in the comparable period a year prior.

With an initial deposit of P100, without minimum maintaining balance and dormancy charges, and involving minimal identification requirement, BDA account ownership has increased and allowed more Filipinos to become financially included.

The central bank introduced the BDA in 2018 to address the needs of the unbanked and low-income sector for affordable, easy-to-open accounts.

BDA holders may earn interest up to four percent per annum in some banks, the BSP said. BDAs also have a maximum account balance of P50,000.

As of the fourth quarter last year, 156 banks were offering BDAs. Broken down, five big banks, 18 thrift banks, 118 rural banks and 14 cooperative banks are offering BDAs. Tonik Digital Bank Inc. is the only online lender which offers this type of deposit account to its clients.

Under the central bank’s Digital Payments Transformation Roadmap, the BSP committed to raise the number of Filipino adults with bank accounts to 70 percent and shift 50 percent of total retail payments to electronic channels by 2023.

The BSP is confident it achieved its twin goals last year. It is now working on the next phase of the roadmap. The central bank will release the results of its digitization efforts in July.

Under the Philippine Development Plan, the share of digital payments to retail transactions should reach 60 to 70 percent by 2028.

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