The Gokongwei Group’s digital banking unit GoTyme Bank Corp. has increased its annual savings interest rate to 5%, with QR and bills payments and investment features set to be rolled out within the year.
The higher interest rate will take effect April 1, 2023 from the previous 3%, available through the Go Save feature with no minimum balance and no limits.
“GoTyme Bank understands that people expect more from what is on offer from the existing banks,” President and CEO Nathaniel Clarke said.
“Our 5% simple savings is another big step by GoTyme to deliver on its promise to offer next-level banking that unlocks the financial potential of all Filipinos,” he added.
The increase is in line with the monetary policy tightening of the Bangko Sentral ng Pilipinas (BSP), which has so far hiked rates by 425 basis points since May 2022.
Clarke said the 5% is a pricing decision based on the prevailing economic situation, and is expected to stay until future conditions warrant a revisit on the bank’s pricing.
“We intend to follow the BSP’s rates. However, we’re not going to be moving up and down with every small BSP movement,” he said.
“In general, if there’s material movements either way, you’re likely to see GoTyme follow that,” he added.
GoTyme is a joint venture of multi-country digital banking group Tyme and members of the Gokongwei Group — Robinsons Bank, Robinsons Land Corp., and Robinsons Retail Holdings Inc. — which own a 60% stake.
The firm targets to onboard 10 million customers in five years, with 340,000 customers enrolled in its first five months. It is looking to grow to 400,000 by the end of the year.
To attract more clients, GoTyme said it plans to roll out more features such as QR and bills payments to be made available in May, an investment feature by mid-2023, and credit offerings by the end of the year.
“We want to help our customers protect the value of their emergency fund from eroding,” Co-CEO and Chief Commercial Officer Albert Tinio said.
“We want to step up our game and ensure that our customers are afforded with a competitive, risk-free rate that only banks normally get,” he added.
GoTyme is one of the six firms that secured a digital banking license from the BSP, along with Maya Bank Inc., the Overseas Filipino Bank Inc., Tonik Digital Bank Inc., UnionDigital Bank Inc., and UNObank Inc.
The BSP approved the recognition of digital banks as a new bank category in November 2020, separate and distinct from other bank classifications.
Former BSP Governor and now Finance Secretary Benjamin Diokno earlier said the central bank would limit the country’s digital bank licenses to six.—LDF, GMA Integrated News