GCASH SEES MORE DIGITAL SAVINGS DEPOSITORS

GCash expects to attract more digital savings account users to its platform, which now services some 5.3 million clients, as it offers a more attractive interest rate for new signups.

The Ayala-led financial technology (fintech) app operator said that one out of every five banked Filipino adults had opened a savings account via GCash through the GSave feature, which is in line with its goal of further reaching out to the unbanked population.

More was expected to follow suit as its partner financial institution, CIMB Bank, hikes its annual interest rate to 7 percent for new GSave accounts.

Existing depositors were given 2.6 percent interest rate a year, which GCash said was higher than the 0.10 percent to 1.25 percent in traditional banks.

The fintech platform is also set to launch the GSave Marketplace, which seeks to provide more options for bank and savings products. Bank of the Philippine Islands, which is also under the Ayala group, will participate in this venture. “We want to bring financial inclusion to Filipinos nationwide. Through GSave, we hope to encourage everyone, especially the unbanked, to open a digital savings account. It can open up a whole suite of financial services like loans, insurance, and investment to help uplift their lives,” said Martha Sazon, president and CEO of GCash.

Sazon explained that users could easily open up a savings account as only one ID is required. It also does not have a minimum deposit and maintaining balance like most traditional banks.