Online banking is one of the new ventures here in the Philippines. This may have been brought or popularized even more by the pandemic and the surge in demand not just in the Philippines but in the whole world.
I often read about these digital banks in some of the groups I’m a member of on social media. Many people are really into these digital banks because of higher interest rates with savings accounts.
So when did these digital banks started?
In 2021, the Bangko Sentral ng Pilipinas (BSP), the country’s central bank, granted licenses to six innovative institutions, paving the way for the establishment of fully digital banks. You can understand more about online banking here in the Philippines in our previous article.
These banks operate solely online, offering their services through user-friendly mobile apps and web platforms.
Now, let’s get to know these 6 BSP licensed digital banks here in the Philippines.
1. Maya Bank
The first on our list is Maya Bank, which is backed by Voyager Innovations, the technology arm of PLDT, and currently holds the largest deposit base among digital banks in the Philippines as of June 2023.
The bank offers a range of services, such as savings accounts, bill payments, and money transfers, which can be easily accessed through its user-friendly app.
Here are some important details about Maya Bank that you should be aware of:
| Feature | Details |
| Minimum Opening Deposit | None |
| Interest Rate on Savings | base rate of 3.5% |
| Free Cash Withdrawals | Up to 4x/month at partner ATMs |
| Bills Payment | Available |
| Money Transfers | Available |
| Loan Products | Available |
| Investment Products | Not yet available |
Considerations
Strengths:
- Largest deposit base among digital banks in the Philippines, indicating trust and reliability.
- User-friendly mobile app with a wide range of features, including bills payments, money transfers, and prepaid mobile top-up.
- Competitive interest rate on savings accounts, reaching up to 4%.
- Extensive network of partner ATMs for free cash withdrawals.
Weaknesses:
- Investment products are not yet available.
- Some users might experience limitations with customer service compared to traditional banks.
2. UnionDigital Bank
UnionDigital Bank is a digital bank that is wholly-owned subsidiary of Union Bank of the Philippines with a partnership to Aboitiz Equity Ventures.
The bank’s primary focus is to provide complete and comprehensive financial solutions for individuals, micro, small, and medium enterprises (MSMEs), and corporate customers.
UnionDigital Bank offers a diverse range of products, which includes savings accounts, loans, investments and cash management services.
| Feature | Details |
| Minimum Opening Deposit | None |
| Interest Rate on Savings | Up to 4% |
| Free Cash Withdrawals | Up to 3x/month at partner ATMs |
| Bills Payment | Available |
| Money Transfers | Available |
| Loan Products | Available |
| Investment Products | Available |
Considerations
Strenghts:
- Offers a comprehensive suite of services, including savings accounts, loans, investments, and cash management solutions.
- Caters to both individuals and businesses, making it a versatile option for diverse needs.
- Backed by the established Union Bank of the Philippines, providing a sense of security and trust.
Weaknesses:
- Interest rate on savings accounts is lower compared to some competitors, reaching up to 3.25%.
- Free cash withdrawal network might be limited compared to banks with extensive partnerships.
3. GoTyme
GoTyme is a financial service provider that is a joint venture of the Gokongwei Group, a renowned corporation here in the Philippines, and Tyme, a multi-country digital banking group.
Their primary goal is to make financial services accessible to those who are underbanked or unbanked. They offer basic banking services such as savings accounts, bill payments, and mobile top-ups, through a user-friendly mobile app.
They also plan to expand their network of digital kiosks that will be located in Gokongwei-managed malls.
| Feature | Details |
| Minimum Opening Deposit | None |
| Interest Rate on Savings | Up to 4% |
| Free Cash Withdrawals | Free withdrawals at select Robinson-affiliated stores and ATMs |
| Bills Payment | Available |
| Money Transfers | Available |
| Loan Products | Not yet available |
| Investment Products | Not yet available |
Considerations
Strenghts:
- Focuses on financial inclusion, offering basic banking services to the underbanked and unbanked population.
- Highly competitive interest rate on savings accounts, reaching up to 4%.
- User-friendly mobile app with a focus on simplicity and ease of use.
- Plans to roll out a network of digital kiosks within Gokongwei-managed malls, increasing accessibility.
Weaknesses:
- Limited product range, currently only offering savings accounts, bills payments, and mobile top-up.
- Cash withdrawal network might be limited compared to more established banks.
- Still a relatively new player in the market, with brand awareness potentially lower than competitors.
4. Tonik Bank
Tonik Bank was the first to receive a digital banking license in the Philippines in 2018.
They offer a simplified and transparent banking experience, including high-interest savings accounts, bill payments, and prepaid mobile phone reloading.
| Feature | Details |
| Minimum Opening Deposit | None |
| Interest Rate on Savings | Up to 4% |
| Free Cash Withdrawals | Up to 4x/month at major ATM networks |
| Bills Payment | Available |
| Money Transfers | Available |
| Loan Products | Available |
| Investment Products | Not yet available |
Considerations
Strengths:
- Known for its transparent and user-friendly banking experience.
- Offers competitive interest rates on savings accounts, reaching up to 4%.
- Simple and easy-to-use mobile app with a focus on core banking functionalities.
Weaknesses:
- Limited product range, currently only offering savings accounts, bills payments, and prepaid mobile phone reloading.
- Cash withdrawal network might be limited compared to more established banks.
5. UNOBank
UNObank is a digital bank that is supported by DBS Bank, Singapore’s largest bank.
Its goal is to offer Filipinos a secure and convenient way to manage their finances. The bank provides various services such as savings accounts, bill payments, and money transfers to its customers.
| Feature | Details |
| Minimum Opening Deposit | None |
| Interest Rate on Savings | Up to 4.25% |
| Free Cash Withdrawals | Free withdrawals at partner ATMs |
| Bills Payment | Available |
| Money Transfers | Available |
| Loan Products | Available (selected areas only) |
| Investment Products | Not yet available |
Considerations
Strengths:
- Backed by the reputable DBS Bank of Singapore, offering a sense of security and trust.
- User-friendly mobile app with a focus on convenience and efficiency.
- Competitive interest rate on savings accounts, reaching up to 4%.
Weaknesses:
- Limited product range, currently only offering savings accounts, bills payments, money transfers, and limited loan offers.
- Cash withdrawal network might be limited compared to more established banks.
- May still be building brand awareness in the Philippine market.
6. Overseas Filipino Bank (OFB)
OFB caters to overseas Filipinos with remittance services, savings accounts, and investment products tailored to their needs.
OFB was established by the Land Bank of the Philippines under Executive Order No. 44 signed by President Rodrigo Duterte.
| Feature | Details |
| Minimum Opening Deposit | None |
| Interest Rate on Savings | 0.05% |
| Free Cash Withdrawals | Limited withdrawals through partner banks and remittance centers |
| Bills Payment | Available |
| Money Transfers | Available for international remittances |
| Loan Products | Available |
| Investment Products | Not yet available |
Considerations
Strengths:
- Caters specifically to the needs of overseas Filipinos, providing a tailored financial experience.
- Offers remittance services, savings accounts, and investment products designed for Filipinos abroad.
- Secure and reliable platform backed by the Land Bank of the Philippines.
Weaknesses:
- Limited service range for Filipinos residing within the Philippines.
- Cash withdrawal options might be restricted, relying on partner banks and remittance centers.
- Mobile app experience might be geared more towards remittance services.
- Lower interest rate on savings compared to other digital banks.
Digital Bank’s Assets
According to Philstar, here’s a data of each digital bank’s assets in an article published in October 2023:
| Digital Bank | Assets |
| Maya Bank | P23.22 billion |
| UnionDigital Bank | P15.16 billion |
| Tonik Digital Bank | P10.71 billion |
| OFB Digital Bank | P4.5 billion |
| UNObank | P3.05 billion |
| Gotyme | P2.74 billion |
As for the latest update, you can also read from Inquirer about these Digital Banks.
Conclusion
Digital banking is still new but has transformed the financial industry in the Philippines. It’s now providing improved accessibility, convenience, and competitive rates compared to the regular banks.
Some are still hesitant in doing online banking but our technology is evolving. I think most people are enticed to join these digital banks because of higher interest rates in savings which is really helpful especially those who have emergency funds that they don’t really intend to spend on anything just yet. It’s helpful when it earn a little bit higher compared to when placed in a regular bank with .05% interest rate per annum which is way lower than our inflation rate.
Anyway, if you are considering these digital banks. I hope you get to have some of the answers you are looking for from this article. For more information though, you can always visit their websites for to know more about what else can they offer.