More Filipinos build up savings amid lockdown

THE ING Bank Nv-manila Branch is seeing Filipinos saving more money amid the implementation of lockdown measures. The Dutch financial company’s local business also believes the trend would likely continue even after the coronavirus pandemic is declared licked.

The ING Bank Nv-manila said in a statement on Thursday that more households are seen reducing their discretionary funds to build up savings instead.

This behavior is expected as more Filipinos have become jobless and the economic prospects have remained bleak after lockdown measures were imposed by the government, the bank said.

Government data shows unemployment rate climbed by 10 percent in July year-on-year. Meanwhile, the Philippine economy has entered into a recession after posting a contraction in two consecutive quarters.

“The pandemic has altered the way Filipinos think about and undertake their financial transactions,” ING Nvmanila Branch head Hans B. Sicat said. “Right now, more Filipinos are motivated to save more and spend less in preparing for their future.”

ING said in a report that the number of bank savings account opening increased since the Duterte government imposed restrictions mid-march.

In April, ING said it was keeping its saving interest rate at 4 percent per annum to encourage more clients in creating an account as the need to build up savings increases.

With this in place, the bank said that customers could earn 16 times more in interest rate compared to most retail banks.

The bank noted there’s no required minimum amount to start earning interest and lock-in period.

“We want to encourage more Filipinos to adopt a habitual savings mindset, especially as the effects of the Covid-19 pandemic changes the way we save and spend,” Sicat said. “And we are committed to help more Filipinos to be financially included, one savings account at a time.”

ING NV launched its digital banking platform in the Philippines in 2018. The Amsterdam, The Netherlands-based financial firm is also present in a dozen countries across the Asia Pacific region.