DAVAO CITY—A nationwide public awareness survey commissioned by the Philippine Deposit Insurance Corp. (PDIC) shows “significant preference” among the unbanked sector to put their savings in banks if resources are made available to them.
The PDIC said the preference among unbanked Filipinos to have a deposit account would help the government-run deposit insurance fund craft programs to entice the unbanked to patronize banks.
The PDIC, however, failed to reveal the
details of the survey, including the number of respondents who said they prefer
to place their money in the bank. It only said that a “significant” number
preferred to bank their money, and the “majority” of the
unbanked Filipinos said “they would save in banks if they had extra money to
save.”
The PDIC said results of the survey shows that 51 percent of the respondents had experience in maintaining deposits in banks but only half of them (24.5 percent) currently maintain bank deposits.
“This indicates that half of the respondents surveyed are unbanked, having had no banking experience at all, the majority of whom said they would save in banks if they had extra money to save,” the PDIC said. This was voiced by the younger population aged 18 to 29 years old who reside in urban areas, reflecting the potential for savings mobilization among the youth, the insurer added.
The PDIC said the result of the survey “reflects the public’s continued trust in the security provided by banking institutions.”
However, the insurance fund manager didn’t say if the low interest on deposit, often the subject of criticism among depositors, figured out in the question or in perception of respondents. The PDIC only said that “there were also those who shy away from banks because they found banking transactions too complicated.”
Also, the survey said “lack of enough money to save was cited as the main reason for not saving in banks.”
It added: “respondents also found keeping money at home [more] convenient and accessible.”
The PDIC said the survey aims to measure the respondents’ banking behavior, as well as their level of awareness on deposit insurance, “which will help PDIC develop and implement responsive communication programs to promote saving and enhance depositor protection.”
“PDIC will continue to work with financial regulators and the banking community to encourage more people to save, to promote the value of saving in banks so they can benefit from the protection provided by deposit insurance, and to help in making saving in banks accessible and less difficult for potential depositors,” PDIC President Roberto B. Tan said.
The survey was conducted early this year and covered 1,500 respondents aged 18 and above. The PDIC commissioned Kantar Philippines Inc. to conduct the survey for them.
The PDIC said Kantar Philippines Inc. was established in 1980 and is currently the country’s largest research market agency specializing in data, insight and consultancy services.
Image credits: Nonie Reyes