In the third quarter of last year, there was a significant increase in the number of Filipinos opening basic deposit accounts (BDA), according to recent data from the Bangko Sentral ng Pilipinas (BSP). The total number of BDAs in the country reached 23.6 million, a 175 percent increase from the same period in 2022.
Introduced in 2018, the BDA is a deposit product with a low account opening balance requirement of P100 or less, no maintaining balance, no dormancy charges, and simple identification requirements. It was designed to cater to the needs of the unbanked and low-income sector while promoting greater financial inclusion.
Total deposits in BDAs amounted to P35.6 billion in the third quarter of last year, a substantial increase from the P4.9 billion in the comparable year-ago period. Currently, 156 banks offer BDAs, with a mix of big banks, thrift banks, rural banks, and cooperative banks. Tonik Digital Bank Inc. is the only online lender offering this type of deposit account.
The BSP aims to increase the number of Filipino adults with bank accounts to 70 percent and shift 50 percent of total retail payments to electronic channels by 2023 as part of its Digital Payments Transformation Roadmap. The central bank is optimistic that it met these targets last year and is now focusing on the next phase of the roadmap, with results expected to be released in July.
As part of the Philippine Development Plan, the goal is for digital payments to account for 60 to 70 percent of retail transactions by 2028.
