When the Bangko Sentral ng Pilipinas (BSP) released a circular that contained guidelines on the establishment of digital banks in December 2020, it marked a transformative shift in the Philippine banking landscape. This formal acknowledgment of digital banks paved the way to a more inclusive banking system that enabled more Filipinos to open accounts and access banking services such as transferring funds, paying bills, and taking out loans right on their mobile devices.
Currently, there are only six BSP digital bank license holders, one of which is Maya. Our accreditation gives assurance to our users that Maya’s banking services all adhere to the strict criteria that BSP has set in order to grant the license. BSP has assessed our bank’s transparency, corporate structure, financial soundness, strategic and operating plans, and risk management measures, among others.
But what exactly separates a BSP digital bank from traditional banks and other unlicensed finance platforms? What can Filipino customers expect from a BSP-licensed digital bank? Here are some of the ways Maya and other licensed digital banks are fostering a more robust banking landscape in the Philippines.
1. Increased Accessibility
Digital banks deliver banking accessibility on multiple fronts. For one, it allows account holders to manage their finances through smartphones without needing to visit a physical bank branch. This setup makes banking possible even for those in rural areas where bank branches are few and far between.
In addition, digital banks made opening an account more accessible by streamlining the Know Your Customer (KYC) process. Opening a Maya Savings account, for instance, only requires an upgraded Maya account and one valid ID. In addition, there’s no minimum balance requirement, allowing Filipinos to start off their saving journey with no cost at all. Through their Maya Savings account, they can then start growing their money by taking advantage of the generous base interest rate of 3.5% p.a. that can still be boosted all the way up to 15%. This can be done by using Maya in various day-to-day transactions such as buying prepaid load, paying bills, making payments via QR Ph, using Maya Easy Credit, and paying online with Maya Card or Maya Wallet.
With this increased accessibility both in terms of location and when opening accounts, digital banks enable more Filipinos to participate in the country’s banking system and thus help foster a culture of saving.
2. Simplified Saving and Investment Opportunities
By integrating investment platforms directly into their apps, digital banks make it easier for Filipinos to start investing with minimal capital. Users can now invest in stocks, mutual funds, cryptocurrencies, and other wealth-building opportunities in just a few taps.
Digital banks also integrate their user’s personal financial goals in their saving and investment offerings, further motivating them to follow through with their financial journey. One example of a goal-based solution is Maya Personal Goals, which lets users set up to five unique goals that earn a guaranteed 4% interest p.a. This gives their funds for each goal a significant boost and helps them reach their financial targets faster.
Meanwhile, those looking for longer-term investments can instead try Maya Time Deposit Plus. Users can choose from 3-, 6-, or 12-month terms for their savings and enjoy guaranteed annual returns of 5.25%., 5.75%, and 5.5% for each term respectively. This allows them to build their savings while also keeping their funds untouched within the term period, thus promoting financial discipline.
Thanks to digital banks, these saving and investment opportunities have now become much easier for Filipinos to grasp, empowering them to grow their wealth and achieve financial independence.
3. Improved User Experience
Digital banks provide streamlined and intuitive user interfaces, allowing customers to perform transactions quickly and conveniently. Features such as transaction histories and real-time notifications also ensure transparency. By monitoring their spending, users can then take better control of their finances and overall budgeting.
Moreover, digital banking services prioritize accessibility and convenience, with 24/7 availability for transactions, balance checks, and customer support. While many traditional banks now offer mobile apps with similar features, digital banks are often designed from the ground up with a seamless, app-first experience, ensuring users can manage their finances efficiently at any time. This level of accessibility is especially valuable for individuals with irregular schedules or those who prefer banking without the constraints of branch hours.
4. Faster Transactions and Processing Times
Transactions through digital banks are processed almost instantly, allowing for a more seamless banking experience. Fund transfers between accounts, bill payments, or even applying for loans are processed more quickly compared to traditional banks. This speed is a game-changer, especially for Filipinos who need urgent financial services.
Moreover, these quick transaction and processing times support BSP’s Digital Payments Transformation Roadmap initiative, which aims to digitize 50% of all retail transactions by 2023. By providing faster, more convenient payment processing, digital banks are able to encourage more Filipinos to make their payments digitally.
5. Secure Transactions
Security is a top priority for BSP-licensed digital banks. As the #1 digital bank in the country, Maya employs strong security features such as secure login options that include not only alphanumeric passwords but also biometric and face authentication as well as spending limits and controls. Major transactions such as transferring funds, applying for loans, payments via QR Ph, and select Maya card payments are also protected via a one-time password (OTP).
Overall, by providing digital bank licenses, BSP is able to inspire trust and confidence among customers in doing business with accredited banks. As more Filipinos embrace modern financial solutions such as digital banking, we get a step closer toward a future-ready Philippines where banking is not only a privilege but a right that is accessible to all.
