E-wallets such as GCash and Maya are most preferred by millennials and Gen Zs, the Bangko Sentral ng Pilipinas said Monday, underscoring how the pandemic accelerated the shift to digital transactions from hard cash.
Ownership of e-money accounts more than quadrupled last year, climbing to 36% from 8% in 2019, the year before the COVID-19 pandemic started, results of the BSP 2021 Financial Inclusion Survey showed.
"This became the most common type of account among adults in the middle class and low-income population, as well as with those aged 15 to 49 years old," the BSP said of e-wallets.
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Filipinos who were cooped up in their homes for over two years since 2020 went digital with their spending and saving as strict lockdowns spurred by the COVID-19 pandemic prevented them from doing face-to-face money transactions.
This led to a surge in ownership of financial transaction accounts among Filipinos which the BSP said nearly doubled to 56% in 2021 from 29% two years prior.
The increase was the highest two-year growth since the survey started in 2015, the BSP added.
"The expansion was spurred by the COVID-19 pandemic accelerating the use of digital payments," the central bank said.
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The survey also showed that six in 10 Filipinos with mobile phones and internet access performed financial transactions online such as fund transfers and payments.
The majority of Filipinos (six in 10), also altered their financial behavior during the pandemic, the survey showed. Some 37% starting to save more for emergencies, 17% started or increased the use of online financial platforms, and 15% saying they borrowed more money.
More Filipinos at 23% also started owning a bank account last year compared to 12% in 2019, the survey showed. Among Filipinos with savings, the BSP said banks remained as the preferred formal institution for keeping funds followed by cooperatives and microfinance institutions.
While more Filipinos have started owning financial transaction accounts, the BSP said challenges to account ownership such as lack of required documents and lack of income remain prevalent especially among lower-income groups.
"...The BSP continues to work not only with other government agencies but also with private sector and development partners to achieve our shared vision of accelerating financial inclusion toward broad-based growth and financial resilience,” BSP Governor Felipe Medalla said.
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