In the Philippines, millions of people still live outside the formal banking system, relying solely on cash and informal savings methods like keeping money at home or relying on friends and relatives during financial emergencies. That’s because many Filipinos still feel that the traditional banking system is out of their reach due to a combination of factors, including strict requirements and the costs associated with banking.
Opening a bank account often requires multiple valid IDs, proof of income, and sometimes, even a minimum deposit, that informal workers and low-income earners may not readily have. On top of that, some may feel intimidated by the formal atmosphere of banks or unsure about the products being offered. Others simply don’t trust institutions they don’t understand or have never had a chance to interact with. These long-standing barriers have kept many Filipinos from participating in the formal financial system.
That said, the rise of digital banks like Maya is quickly changing the situation. These banks empower customers by making financial services more accessible and making money management easier. Here are just some of the ways digital banks are helping:
They Make Banking More Accessible for Everyone
Digital banks remove one of the biggest hurdles for the unbanked: complicated account opening requirements. With platforms like Maya, signing up for an account can be done straight from a mobile phone. All that’s needed is one valid ID and a few minutes to fill out the form through the app. There’s no need to visit a physical branch or schedule a face-to-face appointment.
This convenience also makes banking more inclusive. Tricycle drivers, vendors, freelancers, and anyone without formal employment documents can still open a digital bank account. It removes the notion that banking is only for the wealthy or formally employed, allowing more Filipinos to take control of their finances in a way that works for their lifestyle.
They Encourage Savings with Better Interest Rates
Saving money is one of the most important habits for financial growth, but it’s hard to build that habit when you don’t see your money growing. Many banks are addressing this by offering more attractive interest rates than most traditional banks. Maya, for instance, provides a base interest rate of 3.5% p.a. via Maya Savings, with the opportunity to boost this up to 15% interest p.a. This makes it easier for digital bank Philippines users to grow their money over time.
These higher returns incentivize people to keep their money in the bank rather than as physical cash at home, which can be exposed to risks such as loss or theft. And because Maya is a Bangko Sentral ng Pilipinas-supervised financial institution (BSFI), accounts are insured by the Philippine Deposit Insurance Corporation (PDIC) up to PHP 1,000,000 per depositor. This gives users peace of mind, knowing their savings are protected and are working for them in the background.
Moreover, digital banks like Maya provide various financial tools that can help individuals save. Maya Personal Goals, for example, lets users open goal-based savings accounts to help them set aside funds for their wants and needs. Users can create up to five goals and keep their money for up to six months while it earns interest of up to 4% p.a. On the other hand, Maya Time Deposit Plus is a flexible time-based savings account where users can keep and grow their money for 3, 6, or 12 months, and earn an interest of 5%, 6%, and 5.5%, respectively.
They Have Lower Costs, Perfect for Individuals without a Stable Income Source
One of the main concerns for anyone without a stable income source when it comes to traditional banking is the need to maintain a minimum balance and the fear of being charged unexpected fees. Maya, the Philippines’ #1 digital bank, addresses this by offering accounts with no minimum balance and little to no transaction fees. This means that users can deposit and withdraw funds without worrying about penalties or losing money just to keep their account active.
For people who live on tight budgets, this is a huge plus. They can deposit as little or as much as they want, whenever they’re able, without being penalized.
They Provide Everyday Convenience through Mobile Apps
Another major advantage of digital banks is their mobile-first approach. With Maya, banking services are available 24/7. This means you don’t have to worry about banking hours or standing in line just to check your balance or transfer money. Everything from sending and receiving funds to paying bills and buying load can be done with a few taps on your phone. This is particularly beneficial for Filipinos who juggle jobs, manage households, or run businesses with limited time to spare.
They Offer Safer Lending Alternatives to Informal Loans
Informal lending schemes like “5-6” are common in many parts of the Philippines, especially among unbanked communities. This practice involves borrowing money with the promise to pay back PHP 6 for every PHP 5 borrowed, often within a short time frame. While it may offer fast access to cash, 5-6 loans come with extremely high interest rates (equivalent to 20% or more) and no official borrower protections. If borrowers miss payments, it can result in aggressive collection methods, adding stress to the prospect of high interest payments.
In contrast, digital banks provide a more secure alternative. Through digital banks like Maya, users can apply for small personal loans directly from their accounts with clear terms, fair interest rates, and no collateral needed. Because the process is digital, it's also more transparent. Borrowers can see exactly what they’re signing up for, how much they’ll pay, and when it’s due. This empowers Filipinos to make more informed borrowing decisions and avoid the traps of informal lending.
Maya and other digital banks are reshaping the financial landscape in the Philippines, offering safer and more accessible banking. Their role is even more vital in promoting economic inclusion as the country continues to embrace digital transformation. For unbanked Filipinos, taking the first step toward digital banking could mean more than just opening an account—it could be the start of a more empowered financial future.
