Some of the most well-known digital banks in the Philippines include Maya Bank and Tonik. Numerous well-known banks, like UnionBank and CIMB Bank, provide their clients with online account opening and maintenance services.
In recent years, banking in the Philippines has developed quickly. However, a significant portion of the population in the nation is still unbanked. In 2020, the Bangko Sentral ng Pilipinas officially recognized digital banks as a distinct kind of banking institution. In the Asian economy, a number of well-known digital banks have arisen, offering their clients smooth online banking alternatives.
This article examines the situation of digital banking in the Philippines and identifies the top 11 digital banks there.
Philippine digital banking
The Covid-19 epidemic caused an increase in Internet banking in the Philippines, which helped digital banking gain popularity there. The Philippines’ central bank gave the go-ahead for the launch of multiple digital banks in 2020.
The Philippines is not an exception to the worldwide trend of progressively increasing digital banking. The Asian nation has begun awarding licenses for digital banks, highlighting the importance of accessibility and online transactions.
Numerous reputable traditional banks in the nation have also begun providing their clients with online account-opening services. Although this signals a move toward a cashless world, many people still like cash transfers.
The nation’s central bank ceased authorizing new digital banks in 2021 to promote healthy competition and let the sector expand.
Philippine digital banks to use
Well-known commercial banks UnionBank Online and CIMB Philippines provide consumers with online banking services. Another up-and-coming business, DiskarTech, aspires to be a one-stop shop for all fundamental banking requirements.
In the Philippines, online banking is still in its infancy. The government is introducing a number of banks and mobile wallets to meet the demands of the sizable unbanked population.
Here are The Philippines’ top 11 online banks.
1. UnionDigital Bank
UnionBank of the Philippines’ subsidiary UnionDigital Bank is a wholly digital bank. To provide its clients retail banking products, the bank aspires to close the gap between innovation and opportunity.
By installing the UnionDigital Bank app and registering, users may open an account. To obtain their invite code, individuals must presently sign up for the bank’s “Whitelist.” Users must wait for their invite code before creating their neo bank account.
When you have your code, launch the app and enter the necessary information. You will need to provide personal and professional information to prove your identity. The software requires users to snap selfies and scan their IDs. The bank must authorize your account within one day.
Users of UnionDigital Bank may make payments using PesoNET and InstaPay. No single transaction may exceed 50,000 with a daily transaction limit of 500,000 for users.
The Bangko Sentral ng Pilipinas authorized the establishment of Tonik Tonik, a neo-bank, in 2021.
It is the country’s first all digital bank. One of the most well-known digital banks, Tonik bank offers some of the best interest rates on deposits in the nation.
While the Group Stashing plan offers an interest rate of 4.5% annually, the Solo Stashing plan offers a 4% annual interest rate. A profitable rate of 6% is offered on term deposits, and all accounts are protected up to $500,000 per person.
Users of Tonik may also obtain a fake Mastercard debit card for use while shopping online. Tonik’s software may be used to generate the card, which can be used to make worldwide purchases from shops that accept Mastercard.
For ATM purchases, users may also order a real debit card. Additionally, they may control transaction limits, lock and unlock their debit card online, and send money to any bank in the nation.
3. UnionBank Online
With total assets of 949,639.29 million in the Philippines, UnionBank will be the ninth-largest commercial bank by 2022. To make it easier for customers to create and maintain online accounts, the bank introduced its digital banking service.
Users of UnionBank Online may establish spending limits, conduct financial transactions, divide bills, and make payment requests. Additionally, users may establish spending restrictions online and buy their Visa credit cards using the mobile app.
Users of the software may quickly deposit checks into their bank accounts by taking a photo with their phone and uploading it. They may access a completely digital bank account via their houses thanks to these characteristics.
Users of UnionBank may transfer their PayPal revenues straight to their bank accounts, giving the nation’s freelancers a significant edge.
4. CIMB Philippine Islands
CIMB The CIMB Bank of Malaysia has a subsidiary in the Philippines. The bank offers its clients a complete package of online banking services. The CIMB Bank PH mobile app enables users to quickly and simply open an online account.
Additionally, the bank offers free InstaPay money transfers for its customers. No yearly fees or other costs are associated with ordering the CIMB virtual Visa credit card via the app.
With the bank, clients may establish three different kinds of bank accounts:
The UpSave Account offers a 2.5% annual interest return on deposits. By keeping an average balance of 5,000 each day, users can get free life insurance coverage totaling $250,000 in coverage. Fast Plus Account: Quickly created without requiring a down payment. Users may obtain an actual Visa ATM debit card via the app for $300, and there are no fees associated with starting a Fast Plus account. The account’s top balance is limited to 100,000. Account opening for GSave is possible using the GCash or CIMB PH apps. On their deposits, users get a high-interest rate of 2.6% annually.
The EastWest Bank of the Philippines has released the digital payment app Komo Komo. Users may open an account by downloading the bank’s app and enrolling; there are no physical branches for the bank.
Additionally, users get a 2.5% annual interest return on their savings. The Komo app has a number of functions, including:
- Assurance programs
- portable loads
- Transfer of money
- Free ATM withdrawals from EastWest Bank ATMs indefinitely
- 4 free withdrawals from ATMs of different banks
- Transfers are made using PesoNet 6 and InstaPay.
6. Filipino Overseas Bank
A division of the Philippine Land Bank, the Overseas Filipino Bank is a state-owned online bank. The bank has continued to meet the financial requirements of Filipinos living abroad after receiving its digital license from the central bank in 2021.
By installing the bank’s app and providing their information, users may open an account with the institution. The bank allows customers to send money from anywhere in the world to their family in the Philippines.
The bank also offers additional services including bill payment, money transfers, loan applications, and money deposits.
GoTyme Bank is a newly established online bank that lets customers open their online accounts using kiosks or a mobile app. The following are some attributes of GoTyme bank accounts:
Bank transfers are free. every three days to any bank account
3% annual interest on deposits
Free PDIC-insured Visa ATM debit card
Eight reward points.
One of the most used mobile banking applications in the Philippines is Maya Bank. Through the Maya Bank app, which is accessible on the Play Store and App Store, users may set up an online account.
The procedure for creating an account involves these three steps:
- Online submission of your ID document
- Using the camera on your phone, capture your face.
- Complete the form with your personal data.
- The Maya Savings plan from Maya Bank offers its clients 6% annual savings. Users may also apply for a Visa or Mastercard-enabled ATM debit card.
Some of the features of the Maya Bank mobile app include cryptocurrency investments, bill payments, mobile loads, and bank transfers.
In addition to the Maya Bank mobile account, the bank also provides its consumers with Maya Bank and Maya Center services based on their requirements.
9. Maybank’s iSave
One of the biggest banks with headquarters in Malaysia is Maybank. The Maybank2U Philippines subsidiary provides its sizable client base with the iSave digital bank account service. Through the service’s mobile app, consumers may digitally open their accounts.
In order to start an iSave account, no initial deposit is necessary. On deposits of 10,000,000, users may get as much as 3% interest annually.
Users that deposit a minimum of $1,000 into their account also get a free ATM Visa debit card.
Rizal Commercial Banking Corporation (RCBC) has introduced DiskarTech, a financial app available solely for mobile devices.
Through the mobile app, users may open a basic banking account and get up to 3.5% interest on their deposits. Additionally, members of the digital bank are allowed to transmit money to any bank account.
Debit cards are not available to customers of the bank. However, by inputting their pin, consumers may withdraw cash from RCBC ATMs.
With its headquarters in Singapore, Sea Ltd owns the online bank known as SeaBank.
Through the SeaBank mobile app, which is accessible on the Play Store and App Store, users may register their bank accounts. Users of the bank are able to conveniently monitor their funds and conduct free transactions to SeaBank and other bank accounts.
In comparison to the other banks on our list, the SeaBank savings account offers a good return of 5% interest annually, accrued daily.
The app’s QR payments functionality allows users to make purchases at a variety of Philippine shops.
How Secure Are Philippine Digital Banks?
In practically every nation, digital banks are subject to stringent compliance audits and regulatory oversight. The Bangko Sentral ng Pilipinas, the nation’s central bank, oversees banking in the Philippines.
The Philippine Deposit Insurance Corporation (PDIC), in accordance with the legislation, is responsible for ensuring practically all deposits. In the event of unauthorized transactions from their accounts, this offers the user an additional layer of protection.
Users need to take certain precautions to prevent fraud notwithstanding all safety requirements, nevertheless.
- Never divulge your login and password for Internet banking to anybody.
- Lock your debit and credit cards and only unlock them when you need to use them.
- Do not conduct financial transactions on unsecured public networks.
- Lock your cards and notify your bank right away if there has been a fraud.
The Philippines’ digital banking market is anticipated to expand gradually over the next years as a result of large banks beginning to provide their services online and the development of numerous important companies.
In the field of digital banking, Maya Bank and Tonik are aggressively gaining market share. Users may obtain basic banking services without going to bank branches thanks to Maybank and UnionBank’s successful migration to Internet banking.
Despite the Philippines’ burgeoning digital banking industry, there is still a long way to go until the nation has a completely paperless economy.