MANILA - Majority of Filipinos are interested in using digital banking services due to convenience, security and time saved in completing transactions online, a new Visa study released Tuesday showed.
Eight out of 10 surveyed Filipinos want to try digital banking services, Visa's Consumer Payment Attitude study showed.
Access to banking services any time of the day, time saved from not having to queue at branches and convenience were among the "top interest drivers" in digital banking, Visa said in a statement.
“As more digital-based solutions and trends emerge in the market, Filipinos are more open to new innovations that make payments and banking more convenient, accessible and seamless," said Visa Country Manager for the Philippines and Guam Dan Wolbert.
However, only 32 percent of respondents are currently using services offered by a digital bank, according to the online survey conducted from August to September 2020 with 1,014 Filipino respondents.
Top digital bank services Filipinos are interested in are the following:
• Paying bills (84 percent)
• Local money transfer (78 percent)
• Deposits and withdrawals (76 percent)
• Payments for local retailers (71 percent)
Preference for investments (52 percent), international transfers (48 percent) and loans (46 percent) are lower, the study showed.
Out of the total respondents, 85 percent said they would switch to digital banking if they would benefit from the lower costs, Visa said.
Awareness in digital solutions such as biometric authenticated payments grew to approximately 80 percent in 2020 from 60 percent from the previous year, the study revealed.
Almost 8 in 10 respondents also expressed "high awareness and interest" in biometric authenticated payments, especially Gen Z and the affluent segment, Visa said.
At least 5 in 10 Filipinos also believed it is a "more secure way" to pay but usage is low at 23 percent, it added.
Finger scan (59 percent), facial recognition (31 percent) and retina scan (16 percent) are among the most popular biometric authentication methods used by Filipinos, Visa said.
With the demand, there is an opportunity for traditional banks and new players to launch digital banking services to better serve the needs of the underserved and underpenetrated segments, Wolbert said.
Several local and international financial organizations have started offering digital banking services in the Philippines.
Demand for online financial services surged during the COVID-19 pandemic as Filipinos sought ways to complete transactions without leaving their homes.
The Bangko Sentral ng Pilipinas has also officially recognized "digital bank" as a new bank category, in line with its Digital Payments Transformation Roadmap.