Filipinos prefer to open a bank account on their smartphone.
So says a new study from the FICO Consumer Digital Banking Survey which looked at the preferences Filipino consumers when it comes to opening a digital bank account.
But it was a close thing. The study found that 26% of Filipinos prefer to open a bank account on their phone compared to 18% in the US and 25% in the UK
“Filipino consumers are digital natives,” said Subhashish Bose, FICO’s lead for fraud, security and compliance in Asia Pacific. “Around 40%t of Filipinos have a smartphone and according to a recent study they rank in the top ten mobile internet users globally, spending an average of 4.58 hours a day on their phones.”
The study also showed that digital account opening is rapidly becoming the norm in the Philippines, with 76% of consumers saying they would open some kind of financial account online.
Of those that would open a financial account online, 40% would consider doing so for an everyday transaction account, 38% for a credit card and 33% for a personal loan.
And bucking expectations, it was older consumers in the Philippines who were more likely to be leading the digital push with the youngest Filipinos being the laggards.
“The truth in the numbers here is far more nuanced,” explained Bose. “Younger Filipinos are adept at using smartphones and computers, however, many do not have the required identification forms to open bank accounts at a young age, don’t have regular income or are presented with bank account options that are not appealing. For example, many bank accounts in the Philippines require a minimum balance to avoid monthly account-keeping fees.
“As consumers’ reliance on online services grows in response to COVID-19, we expect further shifts in adoption and indeed an acceleration and acceptance in opening bank accounts digitally. It is important that banks closely examine any points of friction in their application process to ensure consumers are not abandoning a process or switching to a competitor,” said Bose.
Filipinos expect account opening to be fully digital
What’s more, the survey found that a large percentage of Filipinos had an expectation that they should be able to complete all aspects of account opening online or on their phone.