BSP urges banks to connect with the 80% of Filipinos with no bank accounts

The Bangko Sentral ng Pilipinas (BSP) prodded the country's banks and other financial institutions Wednesday to make the financial system relevant in the daily lives of the vast majority of Filipino households, which are "unbanked" because they do not have money to keep in banks, place in investment instruments, buy insurance, or maintain credit cards. BSP Gov. Amando Tetangco Jr. said the BSP "should continue to work toward a more inclusive financial system, one that reaches to the excluded or unbanked... This means the provision of a wide range of financial services covering credit, savings, payments and insurance."   One way of reaching out to the excluded is through the "availability of financial products that are appropriately designed and priced to specific market needs and capacities," he noted. 80% without bank accounts   Having a "wide variety of strong, sound and duly authorized institutions" participating in the system can also serve the "unbanked," according to the central bank official.   The first Consumer Finance Survey of the BSP findings revealed that most Filipinos own the homes they live in. Most also own at least one television set, electric fan, cellphone or telephone, and videodisc player (VCD or DVD).   However, only 21.5 percent of households in the country–roughly one in five–have at least one bank deposit account. The rest–78.5 percent–are out of the immediate reach of the banks.  

Only 3.9 percent of households have credit cards.   Only 1.6 percent are covered by private insurance, as most insurance coverage is connected to employment.   Less than 1 percent (0.4 percent) own some type of investment instrument aside from an insurance policy.   Only 5.5 percent of household expenses are on education while food, rent, transportation and communication costs together make up 67.7 percent of expenses.   The BSP also learned from the survey that of those insured who are not receiving their pension benefits, 47.5 percent were not paying their premiums. US Fed guidance