Having grown up as digital pioneers or natives, young Filipino adults have always been more open to using digital financial tools compared to the older generations. This willingness to adapt and embrace technology is likely one of the reasons why young adults have higher financial literacy compared to other age groups, as noted by a paper recently released by Bangko Sentral ng Pilipinas. Rather than be restricted by long standing financial practices such as keeping their money in traditional banks, modern young adults are more proactive in looking for ways to better manage their finances. Among these include opening a high-yield digital savings account and a time deposit account to take advantage of higher interest rates, signing up for e-wallets and credit cards for ease of payment, and utilizing digital banking to manage their cash flow effectively.
Giving young Filipino adults an effective and convenient means to manage their money while also helping their funds grow is exactly what Maya sets out to deliver. Our flagship digital savings product, Maya Savings, starts with a base interest rate of 3.5% p.a., which can be increased to up to an impressive 15% p.a. simply by completing missions, such as buying prepaid load, paying bills, paying with Maya online, and generally using the Maya Wallet for various transactions. This boosted interest rate applies to deposits up to PHP 100,000, allowing your savings to grow at a faster rate compared to when the money is kept instead in a traditional bank account. Maya Savings also provides ease of access and convenience since the funds can be easily transferred to your Maya Wallet and to other bank accounts via the Maya app.
With these benefits and features, it’s no surprise that many young adults prefer to keep their money in digital banks like Maya instead. Learn more about how digital banking has changed the way this demographic approaches financial management with the following key reasons:
1. Increased Accessibility to Banking Services
Many people live in areas in the Philippines with limited access to physical bank branches. Digital banking eliminates that barrier by allowing users to conduct bank transactions via their smartphones. Through a digital banking app like the Maya app, young adults can check their account balance, transfer funds, buy load, and pay bills in the comfort of their homes. This accessibility is also helpful for those with busy schedules or circumstances that make visiting a physical branch difficult, as well as for those living in areas with limited banking services.
2. Enhanced Financial Literacy through Online Tools
Digital banks often promote financial literacy through their apps or platforms, which helps young adults become more capable of managing their finances independently. In turn, many young adults are also encouraged to use digital tools more as part of their financial management habits.
For instance, young people can make use of a budget tracker to monitor their cash flow, a time deposit calculator to understand how much their savings can earn by taking into account the time deposit interest rate, and an investment tutorial to get started on investment products such as stocks or bonds. This easy access to financial literacy tools and resources helps young people make informed financial decisions and develop healthy financial habits in the long run.
3. Convenience of Digital Payments
Digital banking has also provided young adults with more convenient ways to complete their transactions, whether online or in-store. With e-wallet integration and seamless online payment options, users can effortlessly complete payments for a variety of needs—whether it’s buying load, paying bills, shopping online, or even covering grocery expenses—all with just a few taps on their mobile devices. Digital payments also eliminate any delays since most transactions are completed in real time, which can be valuable for time-sensitive transactions such as emergency fund transfers.
4. Lower Fees and Affordable Services
Traditional bank accounts are often subject to minimum balance requirements and high fees, making them less accessible to young adults with less financial means. In comparison, digital banks are able to offer lower fees since they have lower overhead costs and often don’t even require a minimum balance to open an account. This affordability appeals greatly to young people who are looking to save more money and reduce their financial burdens.
5. Easily Set and Track Financial Goals
Some digital banks offer goal-setting features that allow users to set specific financial targets, whether it's saving for a gadget, building an emergency fund, or planning for long-term goals like travel or education. Young adults can greatly benefit from these goal-setting tools, as they provide a structured and visual way to save and monitor one’s progress.
Maya Personal Goals, for instance, is the perfect tool for saving, allowing users to create up to five separate accounts for different financial goals. Users can easily allocate their extra funds to each account, helping them stay on track and reach their target amounts more efficiently. What’s great about Personal Goals is that your funds get a serious boost as well, thanks to each account’s interest rate of 4% p.a. This allows users to reach their goals faster and thus stay motivated to continue saving.
6. Quick Access to Financial Products and Services
Opening accounts or applying for a loan or credit card through a traditional bank is often time-consuming and complicated, making these banking products and services less accessible to working young adults who may have limited time on their hands. Digital banks make things easier by streamlining the process, affording users more control over where they want to put their money.
Opening a time deposit account can provide great value for young people looking to grow their money. With digital banking, this process can be easily done online, eliminating the need to visit a physical bank, fill out forms, and complete the KYC process in person. Maya users, in particular, can conveniently open a Time Deposit Plus account right on their Maya app. Users can then choose from 3-, 6-, or 12-month terms with guaranteed annual returns of 5.25%., 5.75%, and 5.5% for each term, respectively. With Time Deposit Plus, young adults can grow their funds exponentially while deterring them from touching those savings until their term is due.
7. Enhanced Security and Fraud Protection
Digital banks also employ top-notch security measures such as two-factor authentication, biometric logins, and real-time fraud detection to protect their users’ funds. This is highly valuable for security-conscious young adults who are more aware than ever of the prevalence of online scams and fraudsters in today’s digital spaces.
And to give you greater peace of mind while banking with Maya, we’ve partnered with SHIELD, a tech company specializing in fraud protection and device intelligence. SHIELD uses advanced AI and machine learning technology to analyze thousands of device, network, and behavioral data points in real time. This system enables the detection and prevention of fraudulent activities like account takeovers, malware attacks, and fake account creation, all while maintaining a smooth and secure user experience.
Through the benefits highlighted above, digital banking has completely transformed the way young Filipino adults manage their finances. Thus, young people are now more empowered than ever to save and grow their funds while keeping up with today’s fast-paced, digital-driven economy as well.
