Eight of 10 Filipinos are “aware and interested” in shifting to digital banking services despite that the numbers do not yet show this digital migration, according to VISA’s Consumer Payments Attitudes Study.
While 83 percent of those who participated in the survey said they are willing to conduct financial transactions digitally, only 32 percent are actual digital banking users.
In terms of interests, the use of digital banking services increased to 80 percent compared to 70 percent in the previous year’s study. “As more digital-based solutions and trends emerge in the market, Filipinos are more open to new innovations that make payments and banking more convenient, accessible and seamless,” said Dan Wolbert, Visa country manager, in a statement. “There is opportunity in the country for traditional banks and new players to launch digital banking services in the country that will better serve the needs of underserved and underpenetrated segments,” he added.
The VISA study showed that eight in 10 Filipinos or 83 percent are aware and interested (81 percent) in using digital banking services. “However, only 32 percent of respondents are currently using services offered by a digital bank. (The) top interest drivers for Filipinos to use digital banking services include access to banking services anytime of the day (68 percent), time saved from not having to queue at bank branches (68 percent) and convenience (67 percent),” said VISA.
About 93 percent of Filipinos will work with a financial services brand for digital banking services while 92 percent prefer traditional banks. Another 72 percent will go to new start-ups with digital banking services.
The study said 84 percent are interested in digital banks for their bills payment, while 78 percent will tap online-only banks for money transfers. About 76 percent said they transact digitally for deposits and withdrawals, and 71 percent to make payments for retail purchases. “However, the preference of using digital banking for traditional bank services such as investments (52 percent), international transfers (48 percent) and loans (46 percent) is lower,” said VISA.
The study also said that 86 percent of Filipinos “would switch current banking services to digital banking services if the bank provided better rewards” and about 85 percent would do the same for lower costs.
In the meantime the study also noted an increasing awareness of biometric authenticated payments. The percentage of interested Filipinos increased to 80 percent in 2020 from 60 percent of the previous year, said VISA.
“Almost eight in 10 Filipinos express high awareness and interest in using biometric authenticated payments, especially the Gen Z and affluent segments. Biometric payment is perceived as a quick (62 percent) and innovative (61 percent) way to pay. In addition five in 10 Filipinos (55 percent) think it is a more secure way to pay. However, usage is low at 23 percent since its accessibility depends on market availability,” said VISA.
About 59 percent of those surveyed said they prefer finger scan for bill payments or purchases at convenience stores, 31 percent for facial recognition and only 16 percent for retina scan.