State-owned Development Bank of the Philippines (DBP) has launched a deposit generation campaign aimed at broadening its deposit base and supporting the administration’s goal of financial inclusion for all Filipinos, a top official said.
DBP President and Chief Executive Officer Cecilia C. Borromeo said the bank is looking to bring in 400,000 new private depositors this year, targeting small depositors especially those residing in underserved and unbanked areas of the country.
“DBP is poised to welcome new customers, development partners and allies into the DBP fold,” Borromeo said. “DBP hopes that this campaign would bring in new, low-cost funds that will in turn finance the various development projects of the institution, while firming up its capability as the country’s infrastructure bank.”
The deposit campaign, which has an incentive component for new depositors, aims to bring in P4 billion in fresh deposits for the Bank. In 2017, DBP’s deposits grew by 15.7 percent to P412.36 billion from the P356.24 billion recorded in 2016.
Under the campaign, each new depositor will have the chance to win one of three P1-million prize in raffle draws upon opening of a DBP Peso or US Dollar current or savings account and/or term deposit accounts following DBP published rates. Every P2,000 average daily balance for 91 days entitles new depositors to one electronic raffle entry.
The campaign is in line with the Bangko Sentral ng Pilipinas’ (BSP) efforts to introduce more unbanked Filipinos into the financial mainstream. In its 2017 Financial Inclusion Survey, the BSP reported that 77 percent, or almost four out of five Filipino adults, do not have bank accounts.
Borromeo said the new deposits would beef up DBP’s lending capability as it seeks to fund more projects in priority areas such as infrastructure and logistics, micro, small and medium enterprises, social services, and the environment.
“We will be using these deposits to lend more to local government units, water districts, electric cooperatives, and for the construction of more schools and hospitals,” she said.
Borromeo expressed confidence that the campaign will bring in more members of the saving and investing public to take a look at DBP “…as one of the more appealing options in the landscape of saving and investment in the country…”