A new research report from digital payment firm Visa has found that over eight in 10 Filipinos (83%) are aware and interested (81%) in using digital banking services. However, only 32 percent of respondents are currently using services offered by a digital bank.
Top interest drivers for Filipinos to use digital banking services include access to banking services anytime of the day (68%), time saved from not having to queue at bank branches (68%) and convenience (67%).
The study also showed that Filipinos are most keen to work with a financial services brand for digital banking services (93%) and traditional banks (92%), followed by new start-ups with digital banking services (72%).
Filipinos interested in banking with digital banks are keen to use services such as paying bills (84%), transferring money locally (78%), making deposits and withdrawals (76%), and making payments for purchases at local retail locations (71%).
However, the preference of using digital banking for traditional bank services such as investments (52%), international transfers (48%) and loans (46%) is lower.
In addition, 86 percent of Filipino respondents would switch current banking services to digital banking services if the bank provided better rewards and 85 percent would do so if they can benefit from lower costs for their banking transactions. Filipinos’ interest to use digital banking services increased to 80 percent compared to 70 percent in the previous year when the same research was conducted.
“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 Dan Wolbert, Visa country manager for the Philippines and Guam.
“There is opportunity in the country for traditional banks and new players to launch digital banking services in the country that will better serve the needs of underserved and underpenetrated segments. We believe this will transform the banking and payments landscape in the country and at Visa, we are keen to work with all our partners to help them create better user interface and experience when they create and enhance their digital banking solutions.”
Awareness of digital solutions such as biometric authenticated payments grew to approximately 80 percent in 2020 from 60 percent in 2019. Almost eight in 10 Filipinos express high awareness and interest in using biometric authenticated payments, especially the Gen Z and affluent segments.
Biometric payment is perceived as a quick (62%) and innovative (61%) way to pay. In addition, five in 10 Filipinos (55%) think it is a more secure way to pay. However, usage is low at 23 percent since its accessibility depends on market availability.
Finger scan as one of the biometric authentication methods is most popular amongst Filipinos (59%) especially for making bill payments or purchases at the convenience stores. This is followed by facial recognition (31%) and retina scan (16%).
