Bangko Sentral ng Pilipinas INQUIRER FILE PHOTO
Filipinos will soon be able to open “basic” bank accounts that will allow them to save, borrow, invest and buy insurance policies without the burden of having to provide extensive documentary requirements or even a minimum deposit maintaining balance.
According to the Bangko Sentral ng Pilipinas (BSP), this new scheme will help improve financial inclusion among the unbanked population of the country where only 31.3 percent have formal accounts with financial institutions at present.
“Ownership of an account provides Filipinos the tool to save and transact money in a safe, convenient and affordable manner,” the central bank said in a statement, explaining the new policy. “It can unlock access to a wider range of financial services to meet their various needs, including credit, insurance and investments.”
In approving the basic deposit account scheme, BSP’s policy making Monetary Board said that the usual barriers to opening bank accounts include costs, lack of money, lack of documentary requirements, and perceived low utility of a bank account, among others.
BUSINESS
BUSINESS
BUSINESS
“The basic deposit account framework addresses these observed barriers,” the central bank said.
The minimum key features of the account include: simplified know-your-customer (KYC) requirements; an opening amount of less than P100; no minimum maintaining balance; and no dormancy charges.
