The Digital Bank Association of the Philippines (DiBA PH) reaffirmed its commitment to improving financial health during a roundtable discussion attended by Queen Máxima of the Netherlands, United Nations Secretary-General’s Special Advocate for Inclusive Finance for Development (UNSGSA), and representatives of the Bangko Sentral ng Pilipinas (BSP).
DiBA PH, representing the country’s six digital banks, highlighted their progress in expanding credit access. By pioneering alternative credit scoring models and offering responsible credit services, these banks have increased the total loan portfolio to nearly P25 billion from 2022 to 2023. This progress has been achieved despite infrastructural challenges such as the implementation of the national ID system and the development of a more robust credit bureau.
“Millions of Filipinos now own a financial account thanks to e-wallets,” said Angelo Madrid, president of DiBA PH and Maya Bank. “The next big challenge is here, and in less than two years of operations, safe and reliable digital banking is proving that we can help Filipinos use their financial accounts to improve their financial health.”
The roundtable sought to explore collaboration avenues to advance financial health initiatives and metrics.
Financial health, as defined by the UNSGSA Financial Health Working Group, involves managing current financial obligations smoothly, having the capacity to absorb financial shocks, staying on track to reach future goals, and having confidence in the financial future. Madrid emphasized the importance of enhancing customers’ financial health through digital banking, including conducting a national survey and developing metrics to measure their impact.
The commitment from DiBA PH comes as the Philippines makes significant strides toward financial inclusion. The BSP’s 2021 Financial Inclusion Survey revealed that the number of adults with financial accounts grew from 29% in 2019 to 56% in 2021, driven by the adoption of e-wallets. However, the survey also showed that only 4% of adults borrow from banks, and many still save money at home.
To address these gaps, digital banks have introduced innovative services encouraging healthier savings habits. Customers benefit from higher interest rates on deposits and goals-based deposit accounts, motivating them to save more effectively. By the end of December 2023, the digital banking sector saw a 26% growth in its depositor base, compared to a 4% increase in the overall banking system.