• As of the first quarter of 2023, there are 21.9 million Filipinos who own Basic Deposit Accounts in the Philippines.
• A BDA is a type of bank account that is designed to promote financial inclusion.
• The surge in the number of BDAs in a span of one year led the total value of BDA deposits to exceed ₱27 billion.

The number of Filipinos that have Basic Deposit Accounts (BDAs) as of the first quarter of 2023 has reached 21.9 million, an approximately 170% increase compared to the 8.1 million recorded at the same time last year, the data from the Bangko Sentral ng Pilipinas (BSP) showed.

This amounts to about 19% of the total population in the country. 

What is a Basic Deposit Account?

A BDA is a type of bank account that is designed to promote financial inclusion by offering an easier process to open an account. 

Typically, the opening deposit requirement does not exceed ‌₱100.00. A BDA also has simple identification requirements and a low to no maintaining balance and dormancy charge, which makes maintaining a savings account lighter than regular bank accounts.

BDAs exist to attract the unbanked population to try to open a savings account and have access to financial services in the country, such as making payments and having a facility to store value. 

Key Statistics: Filipinos and Basic Deposit Accounts in the Philippines in Q1 2023

According to the BSP, the surge in the number of BDAs in a span of one year led the total value of BDA deposits to exceed ₱27 billion, a 432% rise from ₱5.1 billion in the same quarter of 2022.

“Part of the growth was driven by the conversion to BDA of transaction accounts opened under the Philippine Identification System (PhilSys) colocation strategy in the fourth quarter in 2022, which resulted in 7.5 million additional BDAs.”

Bangko Sentral ng Pilipinas

The monetary agency noted that five new banks had started to offer BDAs earlier this year. And these banks have already generated 4.3 million newly opened accounts.

“An initiative of the Philippine Statistics Authority and the Land Bank of the Philippines, the co-location strategy aims to onboard unbanked PhilSys registrants into the formal financial system after their biometrics capture at registration centers.”

Bangko Sentral ng Pilipinas

How to Open Basic Deposit Accounts in the Philippines

Another assurance from the BSP is that the Basic Deposit Accounts in the Philippines are insured by the Philippine Deposit Insurance Corporation. For individuals interested in opening an account, the central bank has prepared four steps on how to open a BDA.

For the first step, individuals should research the bank with which they wish to open an account, as there are banks that offer interest-bearing BDAs, while others offer non-interest-bearing accounts. 

Once a desired bank has been chosen, one can proceed to the nearest branch in their location. Note that some banks require online registration before visiting a branch.

To see the list of banks that offer Basic Deposit Accounts in the Philippines, click here. 

Banks also accept a certification from a barangay official, a letter of endorsement from a government agency, or a letter of endorsement from an employer.

After filling out and submitting the form to the bank officer, the normal process is to wait for the bank to issue an account number and card to the applicant. This means the basic deposit account application has been successful.

This article is published on BitPinas: 21.9M Pinoys Now Have Basic Deposit Bank Accounts in the Philippines—Central Bank

Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.

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• Source: https://bitpinas.com/fintech/basic-deposit-accounts-in-the-philippines-21m/