According to the 2019 Financial Inclusion Survey of the Bangko Sentral ng Pilipinas, 51.2 million Filipino adults or more than 70% of the total adult population in the country remain unbanked. The most common reason cited is the lack of money for opening an account, followed by the perceived lack of need for a bank account and the lack of documentary requirements.
However, it’s actually easier than ever these days to open a bank account. Besides, you can enjoy plenty of benefits if you have a bank account. If you don’t have one yet, the reasons below might be enough to convince:
Convenience
When you open a bank account, you also open a whole new world of convenience. For one, you can use your account for online shopping; depending on the bank, you can also link the account to your e-wallet. Another big benefit of having a bank account is that you can nominate merchants for bills payment. Many utility providers have tie-ups with banks, making it easier for their customers to settle their dues.
What’s even better is that some banks now offer online bank account opening! No need to go to a physical branch to file your application; all you have to do is download the bank’s app then take a selfie with your valid ID. Of course, don’t forget to provide the correct information when you fill out the form.
Security
You worked hard to earn your money, so it’s only natural to want to secure it. Sadly, keeping your money at home and in your wallet won’t cut it. What if there’s a fire or flood? What if your house gets robbed? These are all hypothetical situations, of course, but they can happen to anyone at any time.
Fortunately, if you have an account with a bank that’s a member of the Philippine Deposit Insurance Corporation or PDIC, your money (up to Php 500,000) is insured no matter what happens. With this measure of protection for your money, you’ll have more peace of mind.
Other layers of security that banks can give you include PINs for ATM cards and OTPs for online transactions made via debit cards.
Easy Financial Management
Some people have trouble managing their finances simply because they don’t know exactly where their money went. With a bank account, this won’t be so much of a problem. Every transaction is automatically recorded, which you can monitor online, through an app, or even via your passbook. This makes creating a budget and tracking your spending a lot easier.
Of course, this isn’t to say that you can’t monitor your spending manually. However, it can be a bit of a hassle to input each transaction in a notebook or ledger; it’s also more difficult to locate a specific entry if you want to double-check details.
Better Financial Literacy
Some Filipinos are hesitant to open a bank account because of a lack of awareness. For example, they have no idea how interest rates work or how certain types of accounts differ from each other. The thing is, the best way to be more knowledgeable about these things is to actually experience them—in short, you have to open a bank account and learn first-hand.
You should also know that bank representatives aren’t people to be afraid of. They’ll be more than willing to answer your questions and help you understand everything you want to know. Remember that as a depositor, no matter how much money you have in your account, you’re a customer of the bank.
Establishing Bank Relationships
Aside from giving you a safe space to keep your money, opening an account can also help you jumpstart a business relationship with the bank. This is your “foot in the door,” so to speak, if you want to avail more financial products in the future. These include credit cards, home and auto loans, or even SME loans if you want to start your own business in the future.
Of course, you need to be in good standing with the bank in order to get your applications for the above-mentioned products approved. Nevertheless, opening a bank account is a good way to build your financial credibility.
A Form of ID
Finally, having a bank account can serve as a form of identification. Obviously, it’s not on the same level as a valid government-issued ID but it can definitely be used for certain applications. A good example here is when you’re applying for a visa to visit another country, since there are some embassies that ask you to provide a banking statement as one of their requirements.
Some providers also require proof of billing when you’re applying for their services. You can use your bank account for this purpose.
As you can see, a bank account is not just for storing your money. It can also serve multiple purposes, including teaching you how to become more responsible with your money. Open your own bank account today and experience the benefits of having one!
