2021 Financial Inclusion Report

H
About the Cover
The cover photo shows a customer of a bakeshop making a QR Ph payment.

Promoting wider use of digital payments, especially among micro, small and
medium enterprises (MSMEs), is one of the priority initiatives in the National
Strategy for Financial Inclusion (NSFI) 2022-2028. The strategy aims to ensure
Filipinos, especially the vulnerable sector, have access to a wide range of welfare-
enhancing financial services that are in line with their needs and capabilities.
Photo source: BSP Corporate Affairs Office (CORAO)

About the Financial Inclusion Survey
The Financial Inclusion Survey (FIS) is a nationally representative survey dedicated
to collect financial inclusion data from users and non-users of financial products
and services. The 2021 FIS is the fourth run of the biennial survey which began in
2015.i
The survey is part of the commitment of the Bangko Sentral ng Pilipinas (BSP) to
build a comprehensive and robust data framework for financial inclusion. It
complements available supply-side dataii to create a more holistic picture of
financial inclusion in the country.
The main objectives of the survey are: 1) to generate demand-side data on financial
inclusion that would enable the BSP to identify gaps, set priorities, monitor
progress, and craft evidence-based financial inclusion policies; and 2) to measure
financial inclusion in the Philippines in terms of access (accessibility of financial
service providers or FSPs), usage (uptake of financial products and services), and
quality (consumer experience). The 2021 round contains new elements covering
financial consumer protection, capability, and health. The survey also includes focus
group discussions (FGDs) and in-depth interviews (IDIs) as additional source of
insights on financial inclusion issues and opportunities from consumers, business
owners, and FSPs.
Quantitative Survey
The survey has a sample size of 1,200 adults from both National Capital Region
(NCR) and areas outside NCR (Balance Luzon,iii Visayas and Mindanao). Adults in the
survey refer to individuals aged 15 years old and above. Adult population is
estimated at 77.2 million in 2021.
Multi-stage random sampling methodology was employed in selecting the

respondents. Computer-assisted personal interviewing (CAPI) was administered
wherein the field interviewers used a tablet/smartphone to record answers given by
the respondents during the face-to-face interview. The survey was conducted from
13 January to 9 February 2022, with 2021 as reference year for the questions.
The survey instrument was an enhancement of the questionnaire used in 2019. It

was designed by the BSP Financial Inclusion Office (FIO) and approved by the
Philippine Statistics Authority (PSA). Data collection, encoding and processing were
performed by RLR Research and Analysis, Inc., a leading information and
i
Previous reports are available at
https://www.bsp.gov.ph/SitePages/InclusiveFinance/InclusiveFinance.aspx
ii
Published quarterly through the Financial Inclusion Dashboard. Please refer to
https://www.bsp.gov.ph/Pages/MediaAndResearch/FinancialInclusionDashboard.aspx
iii
North/Central Luzon (NCL) and South Luzon (SL)
i
measurement company providing market research, insights, and data services.iv
Analysis and report-writing were undertaken by BSP-FIO.
The sampling error margin is ±3.5% for national-level estimates. Aside from
disaggregation by geography and locality (urban, rural), the results could be further
segmented by gender, socio-economic class, educational attainment, age group,
marital status, and employment.
Respondents came from more or less equal mix in terms of locality, employment
status, and gender. Most of the respondents belong to socio-economic class D,
married, and have at least high school education. The distribution of respondents
by geographical area and age group mimics the Philippine population.
iv
https://www.rlrresearch.com/
ii
Qualitative Survey
To support the findings of the quantitative survey, FGDs and IDIs were conducted
on 17 to 26 May 2022 to the following:
A. Consumers
The study performed six (6) face-to-face FGDs in four (4) geographical areas
to identify the following issues:
No. Area Main Topic

1 North and Central Barriers to having a formal account
Luzon Barriers to digital use for financial transactions
2 South Luzon Use of formal and informal credit channels
3 Visayas Consumer protection
Financial literacy/capability/health
4 Mindanao Financial resilience
Digital payments
Each group consisted of three (3) male and three (3) female decision-makers,
aged 30 to 49 years old,v and belonged to socio-economic class D or E.vi
v
To assess financial literacy/capability/health across age groups, one (1) FGD was composed
of mixed aged representatives from Cebu.
vi
To assess financial resilience, one (1) FGD was composed of socio-economic class E
representatives from Davao.
iii
B. Financial service providers (FSPs)
To explore the challenges in serving the mass market, one (1) virtual FGD
composed of six (6) FSPs from various areas in the Philippines was also
conducted.
C. Business owners
To probe the reception of digital financial transactions (i.e., payments), four

(4) IDIs and one (1) FGD (six (6) representatives from Mindanao) were
conducted among five (5) female and (5) male business owners of small and
medium enterprises (SMEs) for at least five (5) years.
iv
List of Abbreviations and Acronyms
4Ps Pantawid Pamilyang Pilipino Program
ATM Automated Teller Machine
AONCR Areas Outside National Capital Region
BDA Basic Deposit Account
BSP Bangko Sentral ng Pilipinas
CAPI Computer-Assisted Personal Interviewing
Cenfri Centre for Financial Regulation and Inclusion
COVID-19 Coronavirus disease 2019
DFS Digital Financial Services
DOLE Department of Labor and Employment
DOTr Department of Transportation
DSWD Department of Social Welfare and Development
EFT Electronic Fund Transfer
E-Money Electronic Money
EMI E-Money Issuer
FGD Focus Group Discussion
FIO Financial Inclusion Office
FMT FinMark Trust
FSP Financial Service Provider
GSIS Government Service Insurance System
HMO Health Maintenance Organization
IDI In-depth Interview
LGU Local Government Unit
MFI Microfinance Institution
MF NGO Microfinance Non-government Organization
Min Mindanao
MSB Money Service Business
MSME Micro, Small and Medium Enterprise
NCL North and Central Luzon
NCR National Capital Region
NSFI National Strategy for Financial Inclusion
NSSLA Non-stock Savings and Loan Association
OFW Overseas Filipino Worker
OTC Over-the-counter
Pag-IBIG Home Development Mutual Fund (HDMF) or Pagtutulungan sa
Kinabukasan: Ikaw, Bangko, Industria at Gobyerno (Pag-IBIG) Fund
P2G Person-to-Government
P2M Person-to-Merchant
PERA Personal Equity and Retirement Account
PESONet Philippine EFT System and Operations Network
PhilHealth Philippine Health Insurance System
PhilSys Philippine Identification System
QR Code Quick Response Code
PSA Philippine Statistics Authority
SEC Socio-economic Class
SL South Luzon
SSS Social Security System
UITF Unit Investment Trust Fund
Vis Visayas
VisMin Visayas and Mindanao
WB World Bank
WHO World Health Organization
v
The Philippines: An Overview
Population (2021 projection) a/ 110 million

Land area a/ 300,000 sq. km
Number of islands b/ 7,641
Main islands Luzon, Visayas, Mindanao
Capital Manila
Administrative Units a/ 17 regions, 81 provinces,
146 cities, 1,488 municipalities
Official languages Filipino, English
Simple literacy (2019) a/ 94%
Unemployment rate (2021) a/
7.8%
Poverty incidence of population (1st Half of 2021) a/ 23.7%
Average annual family income (2018) a/ PhP 313,000
Gross Domestic Product (GDP) full year growth 5.7%
(2021) a/
Inflation rate (2021) a/ 3.9%
Exchange rate (2021) c/ USD 1 ≈ PhP 50.8
Number of overseas Filipinos (2013) d/
10.2 million
Amount of cash remittances (2021) c/ USD 31.4 billion
Percentage of adults with mobile phone (2021) e/ 92%
Percentage of adults using the internet (2021) e/ 77%
a/
Philippine Statistics Authority (PSA)
b/
National Mapping and Resource Information Authority (NAMRIA)
c/
Bangko Sentral ng Pilipinas (BSP)
d/
Commission on Filipinos Overseas (CFO)
e/
Financial Inclusion Survey (FIS)
vi
Table of Contents
Highlights ..................................................................................................................................................................1
KEY RESULTS
1. Account Ownership ..................................................................................................................................... 13
2. Savings ............................................................................................................................................................... 27
3. Loans.................................................................................................................................................................... 32
4. Insurance and Investment .................................................................................................................... 40
5. Remittance ...................................................................................................................................................... 49
6. Payment ............................................................................................................................................................ 52
7. Financial Access Points ........................................................................................................................... 60
8. Consumer Empowerment ..................................................................................................................... 62
9. Financial Needs and Health .................................................................................................................. 72
10. Digital Access............................................................................................................................................... 79
11. Impact of the COVID-19 Pandemic .................................................................................................. 86
Concluding Notes .............................................................................................................................................88
vii
Highlights
Overall, uptake of formal financial services improved in 2021. The share of adults
with formal account and formal credit climbed by 27 percentage points (ppts) and
six (6) ppts, respectively. Uptake of financial investment, including contributions to
government pension schemes, also grew by 11 ppts. Meanwhile, ownership of
insurance (excluding PhilHealth) decreased by six (6) ppts.
Uptake of Financial Services

2019 2021
Formal Account 29% 56%
Formal Credit 19% 25%
Insurance7 23% 17%
Investment8 25% 36%
Account ownership almost doubled in two years, the highest growth to date for
the country. Ownership of a formal account is a basic indicator of financial
inclusion. Account penetration significantly increased to 56% in 2021 from 29% in
2019, equivalent to an additional 22 million Filipinos opening an account within that
period. This was 4.5 times higher than the 6-percentage point (ppt) increase in 2019
from 2017. The top gainers in terms of demographic segments were: socio-
economic class ABC, Mindanao, more educated (completed at least vocational or
college), and aged 30 to 39. The number of unbanked9 Filipino adults dropped to
34.3 million (44% of total adult population) in 2021 from 51.2 million in 2019, or a
reduction of 16.9 million.
E-money accounts are now the most-owned accounts, with users growing more
than fourfold in just two years. From just eight percent (8%) in 2019, percentage of
Filipinos with e-money account grew more than four times to 36% in 2021. Bank
account penetration also grew almost twice at 23% in 2021 from 12% in 2019.
Account ownership likewise improved in cooperatives (5%) and NSSLAs (0.3%). Only
microfinance non-government institutions (MF NGOs)10 saw a decline in account
ownership which stood at nine percent (9%) in 2021 from 12% in 2019.11
7
PhilHealth was added in the listed types of insurance products in the survey questionnaire
starting 2021. If PhilHealth is considered in the computation of insurance ownership, 48% of
Filipinos had at least one type of insurance in 2021.
8
If contributions to pension schemes (i.e., GSIS and SSS) are excluded in the computation of
ownership of financial investments, only 10% of Filipino adults had at least one type of
investment in 2021, lower than 15% in 2019.
9
For purposes of this report, the words “unbanked” and “financially excluded” are used
interchangeably to refer to adult Filipinos who do not own any type of formal account (in a
bank, e-money issuer, NSSLA, cooperative, or microfinance institution).
10
This refers to compulsory savings (also known as capital build up) which is usually
deducted from the proceeds of a microfinance loan.
11
Some adults may have an account across different providers, thus the figures per provider
type will not sum up to the overall account penetration.
1
Types of Account Owned
*Respondents can report more than one response.
Socio-economic class, educational level, age, and geography drove account

ownership disparities. In 2021, account ownership in socio-economic class ABC
(80%) was almost twice that of class E (44%). E-money was the most common type
of account in socio-economic classes C2, D and E. Meanwhile, for class ABC1 it would
be a bank account.
Account ownership among adults who completed at least college (80%) was more
than twice than that of elementary graduates (34%). Similarly, the share of adults
aged 30 to 39 years old with an account (65%) was more than twice that of younger
adults aged 15 to 19 years old (27%).
In terms of location, Mindanao residents (67%) were more likely to own an account
than those from North and Central Luzon (47%). MF NGO account, which was the
most common type of account for AONCR in 2019, was outranked by e-money and
bank account in 2021. MF NGOs came third in account penetration across
geographical areas, except in Mindanao, where accounts with cooperatives were
preferred after e-money and bank accounts.
Farmers were the least banked among all types of workers. With 73% having no
accounts, farmers or workers in the agriculture sector had the highest financial
exclusion level in 2021. Other segments with high percentage of unbanked adults
were workers for private households (48%) and self-employed individuals (45%).
Non-working adults (i.e., housewives, students, retirees/pensioners, sick/disabled)
without an account stood at 52%, equivalent to 15.6 million adults.
A significant number of accountholders (78%) used their accounts for payment-

related transactions, higher than those who used their accounts for savings
(56%). This represents a reversal from 2019 where a higher number of
accountholders used their account for saving (76%) than for payments (47%). In
2021, the top payment use cases of accounts were receiving money (56%); cashless
payments/purchases (40%); and sending money (38%).
2
Payment-related account usage was particularly high among e-money and bank
accountholders. However, only about one-third of MF NGO and cooperative
accountholders used their account for payment.
Purpose of Account

Base population – Among accountholders (56% of Filipino adults)
Cost concerns and lack of documents were the primary reasons for not owning an
account. Lack of enough money and lack of documentary requirements were the
topmost reasons for not having an account, as reported by 45% and 40% of the
unbanked, respectively. This was followed by lack of knowledge on the process and
perceived lack of need for an account, both at 22%. However, the survey revealed
that a high percentage at 54% of unbanked adults were still unaware of the basic
deposit account (BDA)12 — a product designed by the BSP to address primarily the
cost and documentary requirement barriers. Notably, 87% of unbanked Filipinos
owned a mobile phone, of whom, 79% had access to the internet.
For accountholders, their top reason for opening an account was to save money
(40%), while the top three (3) considerations for an account were the amount
required to open an account (53%), maintaining balance (38%) and interest rate
(38%).
Except for e-money accounts, all other formal accounts were transacted
predominantly through physical channels. Majority (81%) of e-money
accountholders transacted through electronic platforms (i.e., internet banking and
mobile application), a significant increase from just 27% in 2019. On the other hand,
74% of bank accountholders transacted via automated teller machines (ATMs)
which makes it the most used bank channel, while online banking was the least
used bank channel. Accounts with MF NGOs and cooperatives were primarily
transacted over-the-counter (OTC).
12
Designed as a no-frills bank account, the BDA has opening amount of PhP 100 or less,
simple requirements (e.g., any official identification document), no maintaining balance,
and no dormancy charges
3
Mode and Frequency of Transactions Per Account Type
Fewer Filipinos had savings and insurance in 2021. Despite the increase in account
ownership, the percentage of adults with savings fell to 37% in 2021 from 53% in
2019, equivalent to 9.7 million fewer savers. Saving was more prevalent among those
belonging to socio-economic class ABC, college graduates, Mindanao residents,
accountholders, business owners, and workers. While informal saving remained
high with 52% of savers still keeping their savings at home, the share of bank savers
increased to 31% in 2021 from 21% in 2019. Majority (81%) of savers cited that they
allocate savings for emergency.
The share of adults with insurance declined to 17% in 2021 from 23% in 2019.
Starting 2021, PhilHealth was added in the listed types of insurance products in the
survey questionnaire. Inclusive of adults who reported to have PhilHealth, the
percentage of adults with insurance in 2021 would be 48%. Uptake of private
insurance such as life insurance (16%) and microinsurance (13%) remained low.
Those belonging to socio-economic class ABC, with high educational background,
Mindanao residents, aged 30 to 39 years old, business owners, with overseas Filipino
worker (OFW) household members, and workers were more likely to own an
insurance.
Uptake of investments improved. Financial investors among adults rose to 36% in

2021 from 25% in 2019. However, excluding contribution to pension schemes (e.g.,
Government Security Insurance System (GSIS) and Social Security System (SSS)),
investment uptake would show a decline from 15% in 2019 to 10% in 2021. Those
belonging to socio-economic class ABC, with high educational background, aged
20 to 39 years old, NCR residents, working, males, and business owners were more
likely to invest.
The most common type of investment in 2021 was contribution to pension schemes
at 96%, followed by placement in Pag-IBIG Fund (23%) and time deposit (2%). Only
one percent (1%) of investors owned stocks, bonds, Unit Investment Trust Funds
(UITF), mutual funds, and other managed investment schemes.
4
Almost half of Filipino adults had an outstanding loan, with family and friends
and MF NGOs as the top two sources. More Filipinos had borrowings in 2021, as the
share of adults with outstanding loans jumped to 45%, from 33% in 2019.
Borrowing from family and friends, and informal lenders both slightly grew in 2021
at 47% and 14%, respectively. On the other hand, while MF NGOs remained the top
formal source of credit, percentage of borrowers who loaned from these institutions
declined from 31% in 2019 to 23% in 2021, a pattern similar to MF NGO account
ownership. MF NGOs were the top formal credit source in Luzon and Visayas, while
cooperatives were the primary source of formal loans in Mindanao. NCR borrowers
mainly sourced their formal loans from government institutions.
Having a loan was more prevalent in the following demographic segments: socio-
economic class E, Mindanao, aged 30 to 59 years old, with at least vocational
education, business owners, workers, and women. The top considerations of
borrowers in 2021 were interest rate, loan amount, tenor, and flexibility of terms.
Sources of Borrowing

Base population – Among borrowers (45% of Filipino Adults)

Base population – Among borrowers (45% of Filipino Adults)
5
While banks ranked high in account penetration and channel of formal savings,
they ranked low as a formal credit source just above pawnshops. Banks ranked as
the top formal savings institution at 31% and second in account penetration at 23%
in 2021. However, the share of borrowers sourcing their loans from banks only stood
at four percent (4%) in 2021, barely growing from three percent (3%) in 2019.
Residents from Mindanao and Visayas, class ABC, aged 50 and above, urban
dwellers, business owners, account owners, workers, and males were more likely to
borrow from banks.
Borrowing was the main coping mechanism of Filipinos across all financial needs,
followed by use of savings and income. Financial needs would cover meeting goals
(e.g., buying an asset, putting up or expanding a business), building resilience (e.g.,
dealing with emergencies and natural disasters), and managing liquidity (e.g.,
meeting regular spending needs). Claiming insurance was the least used
mechanism even for resilience needs where risk protection could have been useful.
Financial assistance was tapped primarily for resilience needs.
Mechanisms Used to Meet Financial Needs

Base population – Among those who experienced the financial need
While remittances remained largely over-the-counter (OTC) transactions, use of

electronic fund transfer significantly increased. In 2021, 32% and 45% of Filipino
adults sent and received remittance, respectively. Remittances were predominantly
domestic in nature and were done at least once a month. More than 80% of those
who sent and received remittance did so through OTC modes, primarily through
pawnshops and money service business (MSB). Nonetheless, fund transfer has
picked up in 2021 as a mode used by close to 30% of remittance transactors from
less than five percent (5%) in 2019. This was driven by the use of online
banking/mobile apps from less than one percent (1%) in 2019 to over 20% in 2021
among senders and receivers.
6
Remittance Channel

Base population – Among those who sent money (32% of Filipino adults)

Base population – Among those who received money (45% of Filipino adults)
Cash was still the dominant mode of paying among those who made payments
to the private sector and government. Payments made to private sector remained
predominantly cash-based, particularly for services and in-store purchases with
more than 90% of payors having done so in cash. Nonetheless, the shift to cashless
payments has started. From almost zero in 2019, payment terminals and mobile app
usage among payors have grown considerably in 2021 to 13% and nine percent (9%),
respectively. Cashless payments for online purchases have also jumped from a
measly one percent (1%) in 2019 to 18% of payors in 2021.
Payments to government, particularly licenses and fees, were still essentially cash
based. Transactions such as loan amortization, social security contributions, and
taxes registered a lower percentage of cash payors because of the use of auto-
debit/salary deduction arrangements.
7
Mode of Making Payments
Base population – Among those who made payments (84% of Filipino adults)
Payments Made and Received (2019 vs. 2021)
Base population – Among those who made payments (84% of Base population – Among those who received
Filipino adults) payments (65% of Filipino adults)
Use of accounts for receiving payments (or account-based payment) remained

low, particularly for the private sector payees. In government, financial assistance
had the lowest percentage of account-based payees. Cash payees significantly
outnumber account-based payees for payments received from private sector,
particularly business income and dividends. For government payments, pension
and loan proceeds had a slightly higher percentage of account-based than cash-
based payees.
8
Government and private sector salaries were still received in cash by 64% and 70%
of their payees, respectively. Only 11% of beneficiaries received cash assistance
through their account. Meanwhile, more than half of pension payouts (54%) and
loan proceeds from the government (50%) were received through an account.
Mode of Receiving Payments

Base population – Among those who received payment (65% of Filipino adults)
Six (6) in ten (10) adults with mobile phone and internet conducted financial
transactions online. The majority of adults at 93% had a digital device and 77% had
access to the internet in 2021, an increase from 70% and 53% in 2019, respectively.
Out of 92% of Filipinos who owned a mobile phone (most common type of digital
device), 82% had internet access in 2021. This translates to 76% (or 58.6 million) of
total Filipino adults having both mobile phone and internet access, higher than
49% in 2019.
Sixty percent (60%) of those with mobile phone and internet performed financial
transactions online such as fund transfers and payments, a considerable jump from
the 17% in 2019. Mobile phone and internet users who performed online
transactions were primarily from class ABC, aged 30 to 39 years old, and NCR
residents. Lack of awareness remained the top reason for not using mobile phone
or the internet for financial transactions, followed by weak mobile signal and slow
internet connection.
9
Mobile Phone and Internet Use
Among mobile phone and internet users, 40% (or 23.4 million) were unbanked in
2021. Of the 60% who had an account (equivalent to 35.3 million), a majority (79%)
made online financial transactions. Lack of awareness remained the top reason for
not using mobile phone and internet for financial transactions, followed by weak
signal or slow internet connection, trust related issues, and preference to transact
at the bank or ATM.
ATMs, pawnshops, and e-money agents were the most accessible touch points.
Filipino adults were most aware of banks (80%), ATMs (75%) and pawnshops (69%)
while they were least aware of MF NGOs (45%), insurance agents (38%), and non-
stock savings and loan associations or NSSLAs (12%). Among those who were aware
of financial access points, many adults indicated that ATMs (48%), pawnshops (45%)
and e-money agents (42%) were the most accessible touch points.
Despite having the highest ownership penetration, e-money only ranked fifth (5th)
in the types of products that consumers were aware of. Among different financial
products and services, awareness of deposit products was highest (at 81% of adults),
followed by lending, remittance, and pawning. Meanwhile, awareness of virtual
assets (e.g., cryptocurrency) is still limited at 6% of adults, and only 19% of those who
were aware tried using it.
Only two (2) in ten (10) Filipinos reported having encountered an issue or scam in
their use of financial services. Only 17% of Filipino adults (of which 77% owned an
account) encountered an issue with financial services while only 11% (of which 73%
owned an account) experienced a financial scam in 2021. Among these adults who
experienced an issue or scam, 82% opted not to report their concern. Nonetheless,
70% of those who reported said their cases were successfully resolved by the FSP.
Of the 30% whose concern was not resolved, majority (79%) escalated the issue to
the relevant financial regulator (i.e., BSP, Securities and Exchange Commission
(SEC), and Insurance Commission (IC)).
Only two percent (2%) of Filipinos were able to correctly answer all the six (6)
basic financial literacy questions. In 2021, 69% of adults correctly answered at least
half of the six (6) financial literacy questions. Majority demonstrated basic
10
arithmetic-division skills and awareness of investment risk-return tradeoff and
diversification. Meanwhile, less than half (42%) of the respondents in 2021 correctly
identified the effect of inflation to their purchasing power, lower than 55% in 2019.
The question on simple and compound interest had the lowest correct answers at
just 30%. Only seven (7%) of the respondents attended a seminar or webinar aimed
at increasing financial literacy. Around half (54%) of adults expressed interest to
attend financial literacy training sessions of the BSP.
Correct Answers on Financial Literacy Questions
Less than half of adults had a budget. Around 46% of adult Filipinos had a budget,
primarily from the following market segments: class ABC, more educated (with
college, or post-grad degree), NCL and Mindanao residents, accountholders, and
females. Majority of households planned ahead financially (80%) and were
confident in meeting their long-term financial goals (66%).
More Filipinos experienced concerns on the "every day" and "rainy day" aspects
of financial health but were generally optimistic about their future. Almost half of
Filipino adults had difficulty in meeting their cost of living and were concerned that
finances controlled their lives and their savings will not last. These were generally
more acute in SEC E segment. Meanwhile, more Filipinos generally have a positive
financial outlook as they believed that they a) were on track to meet their financial
goals; b) had a clear perspective of their financial goals; and c) felt secure about their
financial future. NCR and class ABC respondents were more likely to hold this
optimistic view.
The top cited areas needing more regulatory attention were access to savings and
loans. Respondents cited that access to accounts/savings (46%) and loans (17%)
need more attention and support from the BSP and other regulators. Top concerns
were documentary requirements, consumer assistance, and security measures.
Nevertheless, majority (83%) of respondents agreed that BSP’s programs and
policies helped increase access to financial services.
Gender gap, in indicators where it exists, generally remained in favor of women.

As in 2019, women outranked men in 2021 when it comes to account ownership,
smartphone and internet access, online financial transactions, use of formal credit,
fund transfer remittances, and financial literacy.
11
However, men overtook women in insurance availment in 2021 – a reversal from
2019. Men also continued to outrank women in 2021 in bank account ownership,
bank loans, and investments. Nonetheless, the gender gap in investment favoring
men has narrowed in 2021 at 5 ppts from 9 ppts in 2019.
Six (6) in ten (10) Filipinos reported a change in financial behavior due to the
COVID-19 pandemic. With the onset of COVID-19, 58% of adults indicated that their
present financial behavior changed pre-pandemic. In 2021, 37% of adults started to
save more for emergencies, 17% either started to use or increased their usage of
online banking and digital payments, 15% borrowed more, while four percent (4%)
acquired insurance.
12
1. Account Ownership
A basic indicator of financial inclusion is the ownership of an account held in formal
institutions including banks, e-money issuers, cooperatives, and microfinance
institutions (MFIs). This account can be used to save money; send or receive
remittance, income, and benefits; and make day-to-day payments.
Account penetration
Account ownership significantly increased to 56% Figure 1A. Account Ownership

in 2021 from 29% in 2019,13 the highest growth to
date for the country. The number of Filipino adults
with an account more than doubled to 42.9
million in 2021 from 20.9 million in 2019,
equivalent to 22 million adults who became
financially included in the span of two years. This
was 4.5 times higher than the 6-percentage point
(ppt) increase in 2019 from 2017. Consequently,
the number of Filipinos without an account
dropped to 34.3 million (44% of total adult
population) in 2021 from 51.2 million in 2019, or a
reduction of 16.9 million.
Figure 1B. Types of Account Owned E-money accounts (27.5 million users)
surpassed the bank accounts (18
million owners) as the most-owned
account in 2021. From just 8% in 2019,
the percentage of Filipinos with e-
money accounts grew more than
four times to 36% in 2021. Bank
account penetration also increased
almost twice at 23% in 2021 from 12%
in 2019. From 2019 to 2021, account
ownership likewise improved in
cooperatives (5%) and NSSLAs
(0.33%). Only microfinance non-
government institutions (MF NGOs)
saw a decline in account ownership
Base population – Among accountholders (56% of Filipino adults) which stood at 9% in 2021 from 12%
in 2019.
13
Compared with ASEAN countries, the percentage of Filipino adults with an account in 2021
was higher than Cambodia (33%), Laos (37%), Myanmar (48%), and Indonesia (52%), but
lower than Malaysia (88%), Thailand (96%), and Singapore (98%), based on the 2021 World
Bank Global Findex.
13
Profile of Filipino adults with an account
The 2021 upsurge in account ownership was generally evident across demographic
segments. The top gainers in terms of demographic segments were socio-economic
class ABC, Mindanao, more educated (completed at least vocational or college), and
adults aged 30 to 39 years old.
Socio-economic class, educational level, age, and geography drove account

ownership disparities. In 2021, account ownership in socio-economic class ABC
(80%) was almost twice that of class E (44%). Account ownership among adults who
completed at least college (80%) was more than twice that of elementary
graduates (34%). Similarly, the share of adults aged 30 to 39 years old with an
account (65%) was more than twice that of younger adults aged 15 to 19 years old
(27%).
Figure 1C-1. Account Ownership by Demographic Profile
Other income factors such as having a job, being a remittance-receiving household,

owning a business, and receiving financial assistance from the government (i.e.,
Pantawid Pamilyang Pilipino Program or 4Ps) increased the likelihood of account
ownership.
Figure 1C-2. Account Ownership by Demographic Profile
14
Certain segments that had significantly lower account penetration rates compared
with the national average in 2019 likewise showed considerable improvements in
2021. However, these segments continue to have lower account penetration rates
compared with the 2021 national average of 56%, especially young and single adults
as well as non-workers.
Table 1A. Account Ownership by Selected Demographic Profile
DEMOGRAPHIC Growth
2019 2021 (In percentage
PROFILE points)
Aged 15 to 19 years old 7% 27% 20
Single 15% 48% 33
Not working 19% 48% 29
Without business 24% 53% 29
South Luzon 24% 54% 30
Male 24% 54% 30
The succeeding discussion describes the demographic segmentation of account

ownership:
By income class
• Uptake of accounts in class ABC1 at 91% continued to outpace all other

classes in 2021. This was followed by class C2 adults at 76%, which also
registered the highest growth across all demographics at 42 ppts. The
percentage of account owners in class D almost doubled from 28% in 2019
to 54% 2021. Meanwhile, despite recording the lowest growth rate among all
income classes, adults with accounts in class E significantly improved from
27% in 2019 to 44% in 2021. E-money was the most common type of account
in classes C2, D and E, while for class ABC1 it would be a bank account.
Table 1B. Account Ownership by Type of Account and Socio-economic Class
ACCOUNT ABC1 C2 D E
With Account 91% 76% 54% 44%
Bank 71% 43% 21% 13%
E-money 57% 50% 35% 26%
NSSLA 3% 2% 0% 0%
Cooperative 9% 9% 5% 4%
MF NGO 9% 12% 8% 8%
15
FGD Insights
Disbursement of salaries and wages, claims or benefits, and loan proceeds

through bank accounts prompted class DE respondents to open an account.
Moreover, due to the efficient money transfer system, FGD respondents were
keen on owning and using e-money accounts for the receipt of their income
and financial assistance, as well as payment for expenses.
“Ako [ay] may [account sa] bangko kasi…

“Doon [sa e-money account]
kailangan [ko] mag-open ng account
pinapadala ang bayad kapag may
[para maka-claim ako ng death benefits]
nagpapapintura ng sasakyan.”
noong namatay iyong Mama ko.”
- Davao interviewee,
- Cebu interviewee,
On reason for opening an e-money
On reason for opening a bank account
account
By educational attainment
• There were eight (8) out of ten (10) college graduates who owned an account
in 2021. Moreover, account penetration was almost twice as likely on adults
with vocational education at 65% than those with primary education at 34%.
Meanwhile, about half of adults with secondary education had an account at
51%. With the exception of MF NGOs, adoption of all types of account was
highest among more educated adults (with at least vocational or college
degree). E-money was the most common form of account across all
educational background.
Table 1C. Account Ownership by Educational Attainment
COLLEGE/
ACCOUNT PRIMARY SECONDARY VOCATIONAL
POST-GRAD
With Account 34% 51% 65% 80%
Bank 13% 17% 31% 50%
E-money 14% 34% 42% 53%
NSSLA 0% 0% 0% 2%
MF NGO 11% 7% 13% 7%
By geographical area/locale
• In 2021, account penetration was highest in Mindanao at 67%, overtaking

Visayas at 55%. Meanwhile, the lowest recorded percentage was in North and
16
Central Luzon at 47%. The MF NGO account, which was the most common
type of account for areas outside NCR (AONCR) in 2019, was outranked by e-
money and bank account in 2021. MF NGOs now ranked 3rd in account
penetration across geographical areas, except in Mindanao, where account
with cooperatives was preferred after e-money and bank accounts.
• Account ownership in urban and rural areas in 2021 were almost the same,
with a 1-ppt difference in favor of rural areas, which may be attributed to the
marginally higher share of accounts with cooperatives in rural areas. While e-
money and bank accounts were the most common form of account in both
areas, share of e-money accounts was slightly higher in urban areas.
Table 1D. Account Ownership by Geographical Area and Locale and Type of Account
ACCOUNT NCR NCL SL VIS MIN URBAN RURAL

With Account 54% 47% 54% 55% 67% 55% 56%
Bank 16% 21% 18% 26% 34% 23% 23%
E-money 45% 27% 40% 30% 38% 37% 34%
NSSLA 1% 0% 0% 0% 0% 0% 1%
Cooperative 0% 2% 1% 5% 15% 5% 6%
MF NGO 3% 8% 11% 14% 5% 9% 8%
By age
• Although the youngest age group had an account penetration of only half
the nationwide average, the percentage share of young adults aged 15 to 19
with an account grew more than thrice in 2021 at 27% from 7% in 2019.
Account penetration improved starting from age bracket 20 to 29 at 61%,
peaked for 30 to 39 years old at 65% and gradually declined for older
respondents (>50 years old). Across age groups, more adults aged 15 to 49
years old preferred e-money accounts, while a higher share of older
respondents (>50 years old) owned bank accounts.
Table 1E. Account Ownership by Age and Type of Account
ACCOUNT 15 to 19 20 to 29 30 to 39 40 to 49 50 to 59 > 60
With Account 27% 61% 65% 62% 54% 47%
Bank 3% 21% 30% 29% 27% 27%
E-money 23% 47% 48% 34% 21% 11%
NSSLA 0% 0% 0% 0% 1% 0%
Cooperative 3% 3% 5% 8% 7% 6%
MF NGO 1% 5% 8% 16% 12% 11%
17
By marital status
• About six (6) in ten (10) married adults owned at least one account in 2021,
higher than five (5) out of ten (10) non-married adults. Notably, the
percentage of single adults that owned an account tripled in 2021 at 48%
from 15% in 2019. E-money account was the most common form of account
across different types of marital status, except widowed, who had higher
ownership of bank accounts.
Table 1F. Account Ownership by Marital Status and Type of Account
MARRIED/
ACCOUNT SINGLE COMMON- SEPARATED WIDOWED
LAW
With Account 48% 59% 54% 54%
Bank 18% 25% 27% 32%
E-money 38% 36% 33% 14%
NSSLA 0% 1% 0% 0%
MF NGO 1% 11% 16% 14%
By employment status
• Working adults had a higher share of account ownership at 61% compared

with non-working adults at 48% in 2021. These were significant
improvements from the corresponding 2019 results of 39% among working
and 19% among non-working adults.
Table 1G. Account Ownership by Employment Status and Type of Account
ACCOUNT WORKING NOT WORKING
With Account 61% 48%

Bank 29% 14%
E-money 39% 30%
NSSLA 0% 0%
Cooperative 6% 3%
MF NGO 9% 8%
• By class of workers, farmers or workers in the agriculture sector had the

highest financial exclusion level at 73% in 2021. Other segments with high
percentage of unbanked adults were workers for private households (48%)
and self-employed individuals (45%). Non-working adults (i.e., housewives,
students, retirees/pensioners, sick/disabled) who did not have an account
stood at 52%, equivalent to 15.6 million adults.
18
Figure 1D. Account Ownership by Class of Workers
----------------------------------------------------------------------------------------------------------
By gender14
• While women remained more financially included than men, the gender gap
favoring women narrowed to 3 ppts in 2021, from 9 ppts in 2019. This was due
to the faster growth of accounts among men in 2021 at 30 ppts (from 24% in
2019 to 54% in 2021) compared with 24 ppts for women (from 33% in 2019 to
57% in 2021). E-money account was the most common form of account for
both genders. Notably, bank account ownership was higher among men in
2021, while ownership of accounts in MF NGOs and cooperatives was higher
among women. The gender gap in favor of women was highest (9 ppts) in MF
NGOs.
Table 1H. Account Ownership by Gender and Type of Account
GENDER
ACCOUNT MALE FEMALE GAP
(F-M, in ppts)
With Account 54% 57% 3
Bank 26% 20% -6
E-money 36% 36% 0
NSSLA 0% 0% 0
Cooperative 4% 6% 2
MF NGO 4% 13% 9
14
In this report, gender refers to the sex at birth of the respondent.
19
Primary considerations in opening an account
Figure 1E. Primary Considerations in
Opening an Account
The amount required to open an
account was the top consideration of
accountholders (53%) in 2021. Other
main considerations were maintaining
balance (38%), interest rate (38%),
documentary requirements (32%),
dormancy charges (30%) and reputation
of the financial institution (29%). It
appeared that accountholders were less
concerned about waiting time (18%),
distance of the financial institution (17%)
and the way the financial institution
treats its customers (15%) in deciding
whether to open an account. *Respondents can report more than one response.
FGD Insights
FSP representatives underscored that
“Before, humihingi kami ng 2x2 digitalization of financial institutions
picture… [at] photocopy of ID. further eased the costs associated with
[Ngayon] we take picture[s] from our account opening or reloan
tablet. Hindi ka na magpi-print ng applications, thus, encouraging uptake
forms.” of accounts. Instead of submitting the
hard copies of personal documents
- FSP interviewee, (e.g., IDs, pictures, and forms), the
On adopting digitalized practices individuals or agents of financial
institutions may scan, take a picture,
fill-up, and submit the required
documents online, eliminating the
transportation and paper costs.
Reason for opening an account
For accountholders, their top reason for opening an account in 2021 was to save
money (40%), followed by receipt of salary and benefits (28%), while the rest cited
the following: a) for remittances, b) for business, c) for payments, and d) for online
shopping.
20
Figure 1F. Reasons for Opening an Account
Reasons in opening an account

Current purpose of account
A significant number of accountholders (78%) used their accounts for payment-

related transactions, higher than those who used it for savings (56%). This
represents a reversal from 2019 where a higher number of accountholders used
their accounts for savings (76%) than for payments (47%).
These payment-related transactions referred to the use of accounts to receive

money such as remittance, salary, benefits, pension, and financial assistance (56%
of accountholders), cashless payments/purschases (40% of accountholders), and
sending money (38% of accountholders).
Payment related account usage was particularly high among e-money and bank
accountholders. However, only one-third of MF NGOs and cooperative
accountholders used their account for payment. Preference for cash payments and
lack of awareness that accounts can be used for payments were the primary reasons
why adults did not use their accounts for payment transactions.
Figure 1G. Purpose of Account

21
Figure 1H. Usage of Account for Payments and Reason for Not Using Account for Payments

Base population – Among Base population – Among accountholders who did
accountholders (56% of Filipino adults) not use their account for cashless payments
(online/mobile/card payments)
FGD Insights
Particularly for adults from classes D and E with informal or contractual
occupations who were interviewed, cash remained the most preferred
method to keep money, pay bills, or receive payment since they can
immediately access the money without the need for devices, internet, or
mobile applications and will avoid incurring transportation costs to go to
banks. Meanwhile, business owners’ usage of either accounts or cash relied
heavily on the preference of their customers, suppliers, and workers.
“Kung wala kang [mobile] data, “Ibabangko mo tapos … kukunin mo rin [ang
hindi mo makikita na naipasa pera] sa bangko. Halimbawa may bibilhin ka,
na [ang bayad sa tricycle]. Gusto siyempre pupunta ka pa [sa] bangko para
ko cash to cash para iwas withdrawhin [ang pera]. At least kung nasa
abala.” [iyo] na [ang pera], mabibili mo na iyong
kailangan mo. Minsan ang haba pa ng pila [sa
- Dagupan interviewee,
On why cash is preferred over
bangko].”
formal accounts - Batangas interviewee,
On why cash is preferred over bank accounts
22
FGD Insights
There were instances wherein some

Filipinos willingly pay fees to request “Ako na iyong nangongolekta [ng
other people to pay their bills online pambayad sa kuryente]. Bibigyan ako
and offline (i.e., fall in line for payment [ng mga magpapabayad] kahit P50.
to branches of utility companies). This Kung limang resibo iyan, P250 [ang
additional cost can be diverted to ibibigay sa akin]… parang nabayaran
savings once the payment function of yung pila ko.”
accounts was explored.
On how to earn money by paying bills
Number of accounts and frequency of usage
Accountholders owned at least one account, regardless of type, in 2021. In addition,

frequency of transactions depends on the type of account. E-money accountholders
performed transactions most frequently at one (1) to six (6) times a week in 2021, a
jump from twice a month usage in 2019. This was followed by clients of MF NGOs
who engage in weekly transactions, reflecting the nature of microfinance. Adults
with bank accounts usually transact one (1) to three (3) times a month while
majority of those with an account in cooperatives had monthly transactions.
Meanwhile, respondents with NSSLA accounts had the least frequent usage—less
often than every 6 months.15
Mode of accessing the account
Except for e-money accounts, all other formal accounts were transacted
predominantly through physical channels. Majority (81%) of e-money
accountholders transacted through electronic platforms (i.e., internet banking and
mobile application), a significant increase from just 27% in 2019. On the other hand,
74% of bank accountholders, transacted via ATMs which makes it the most used
bank channel while online banking was the least used bank channel. Accounts with
MF NGOs and cooperatives were primarily transacted OTC.
For those who did not use electronic platforms in 2021, the main reason cited was
lack of awareness, followed by weak signal/internet, unavailability of online
channels, and lack of trust. Almost three-fourths (72%) of electronic channel users
were comfortable in using these digital channels in 2021.
15
Figures on NSSLAs have a very low base.
23
Figure 1I. Frequency of Transactions
FGD Insights
Adults who were uncomfortable using

online platforms were worried about the
possibility of losing money due to “Very lenient o parang comfortable
hacking and inadvertent transactions (i.e., or complacent iyong customers
transfer to wrong account). To address natin in sharing their passwords or
these concerns, FSPs are improving their even their phones. Naco-
security measures to ensure that users are compromise tuloy iyong security.”
shielded from fraudulent transactions.
- FSP interviewee,
Moreover, the public was likewise
On cybersecurity
enjoined to cooperate in promoting
cybersecurity by implementing basic
measures such as refraining from
password sharing.
Meanwhile, low usage of ATM was due to unavailability, lack of awareness, long
lines, and inaccessibility due to distance. The percentage of respondents who cited
long lines as the primary reason for not liking OTC transactions increased to 53% in
2021 from 40% in 2019, supporting the shift of respondents’ preference away from
OTC transactions.
24
Satisfaction with the account
Nearly all (94%) of accountholders were satisfied

with their account in 2021. Overall satisfaction was
driven by factors such as fast processing (62%) and
low maintaining balance (40%). Enabling the
accountholder to save money (38%), lower fees on
transactions (33%), and accessibility of branches
Base population – Among accountholders (56%)
(32%) likewise brought satisfaction to respondents.
Furthermore, respondents were satisfied with their account because of relevant

services offerings (27%), more ATMs available (27%), availability of online channels
(24%), enhanced security features (20%), and loan offerings (18%).
Reason for not owning a formal account
Lack of funds or not having enough money remained the topmost reason for not
owning an account, as reported by almost half (45%) of the unbanked, followed by
lack of documentary requirements at 40%. Another reason cited by respondents
was the lack of knowledge on the process at 22%, which may be associated with
non-savers. Meanwhile, the perceived lack of need for an account at 22% may be
linked to the limited awareness of accounts as means for payment and remittance
transactions.
Figure 1J. Reasons for Not Owning a Formal Account

Base population – Among those without an account (44% of Filipino adults)
25
Basic Deposit Accounts 16
Figure 1K. BDA Awareness
The survey revealed a slight decrease in
the percentage of adults who were
unaware of the basic deposit account
(BDA) to 54% in 2021 from 60% in 2019. In
particular, more Luzon (except South
Luzon) and rural respondents, in classes D
and E, and business owners were
unaware of BDA. Notably, 54% of
unbanked were still unaware of BDA.
FGD Insights
Most interviewees were unfamiliar
with the BDA and its features. Hence, “Mahirap [mag-open ng account sa
respondents continued to believe bangko] kasi kailangan ng valid ID or
that they need a large sum of money [record ng] mga bills at malaking
to open a bank account and were maintaining balance.”
discouraged by charges (i.e.,
dormancy and maintenance fees). - Cebu interviewee,
However, respondents were keen to On reason for not opening a bank
open an account upon presentation account
of the BDA features.
16
As a no-frills bank account, the BDA has an opening amount of PhP 100 or less, no
maintaining balance, no dormancy charges, and simple requirements (e.g., any official
identification document).
26
2. Savings
Savings behavior
In 2021, despite the increase in account Figure 2A. Incidence of Saving

ownership, the percentage of adults with
savings fell to 37% from 53% in 2019,
which may partly be due to the COVID-19
pandemic that may have reduced
household income or increased medical
expenses. The number of savers
decreased by 9.7 million, from 38.6
million in 2019 to 28.9 million in 2021. This
was consistent with the lower
percentage of accountholders at 56%
who utilized their accounts to save in
2021 from 76% in 2019.
Profile of adults with savings
Saving was more prevalent among those belonging to socio-economic class ABC,
college graduates, Mindanao residents, accountholders, business owners, and
workers.
Figure 2B-1. Savers by Demographic Profile
27
Figure 2B-2. Savers by Demographic Profile
Percentage of savers significantly declined, particularly among adults in NCR, South

Luzon, Visayas, SEC E, those who are working and residing in urban areas. Below is
a detailed look at the demographic profile of savers:
• The lower incidence of savings in 2021 was recorded across geographical

areas except in Mindanao, which registered an increase and surpassed all
areas.
• The number of NCR savers declined from 65% in 2019 to 28% in 2021,
registering the second lowest savings incidence after South Luzon.
• In terms of SEC classification, more respondents in class ABC1 at 83% saved

in 2021 from 79% in 2019. However, this was exceedingly outweighed by the
double-digit ppt decline of low-income (classes D and E) savers at 19 ppts
and 21 ppts, from 55% and 48% in 2019 to 36% and 27% in 2021, respectively.
• The percentage of savers likewise declined across locale, age group, marital
status, employment status, and educational attainment in 2021. Compared
with the national average, savings incidence was significantly lower among
young adults and those with primary education only.
• By gender comparison, savings incidence in both genders decreased from

2019 to 2021. The percentage of female savers was still higher than the
percentage of male savers, but the gap between genders remained minimal,
with 36% males and 39% females.
28
FGD Insights
The low or irregular income of classes D and E due to the informal or contractual
nature of jobs may either be inadequate or only sufficient to cover fixed
expenses on basic needs such as food, shelter, and health, which eroded existing
savings or lessened their capacity to save.
“Walang ipon talaga kasi kulang na “May times na nakakaipon. Pero may
kulang… Ako lang nagtatrabaho sa months na… may biglang babayaran ka
amin… doon kinukuha lahat (i.e., na mga unexpected, doon, nagagamit
pagkain).” siya. Wala, magze-zero [ang savings]
ulit.”
- Davao interviewee, - Batangas interviewee,
On reason for not saving On challenges in saving
• Sources of funds also play a huge role in mobilizing savings. Incidence of

savings was observed to be significantly higher among business owners
(53%), workers (43%), and those with other funding sources such as
household members working abroad (42%).
• On the average, respondents said that 17% of their income went to savings in
2021, higher than 13% in 2019. Further, respondents in class ABC, South Luzon,
Visayas, aged 15 to 29, college graduates, males, workers, and urban areas
recorded higher allocation of income to savings than the nationwide
average.
Savings by institution
Informal savings remained high in 2021, with 52% of savers still keeping their
savings at home. This was especially true for adults with secondary or vocational
education, aged 15 to 39 years old, residing in North and Central Luzon, Mindanao,
and rural areas, low-income classes (D and E), not working, and without business.
FGD Insights
In rare instances when classes D
“Sa bahay na lang [ilalagay ang ipon] and E respondents had money to
kasi, halimbawa, nagkasakit ka, at least be saved, the amount tends to be
may magagamit ka agad.” minimal and may eventually be
used for immediate expenses.
Hence, they preferred saving at
On reason for not saving in a formal
account home to readily access their funds.
29
Nevertheless, banks were the top choice for saving in formal institutions at 31%, an
increase from 21% in 2019. Bank savers mostly belonged to the following segments:
class ABC, college graduates, accountholders, VisMin and urban residents, business
owners, workers, males, and at least 40 years old. Saving in cooperatives was more
prevalent among Mindanao and urban residents, SEC ABC, college graduates,
workers, and females while MF NGO savings was more popular among 4Ps
recipients, non-college graduates, North and Central Luzon, Visayas, and rural areas,
low-income households (SEC D and E), females, and business owners. Savers in
cooperatives and MF NGOs registered at 14% and 13% in 2021, respectively.
Figure 2C. Savings by Institution

Base population – Among savers (37% of Filipino adults)
Reasons for saving 17

Figure 2D. Top Reasons for Saving
For the 37% savers in 2021, majority or
81% cited that they allocate savings for
emergency while other considerations
were: a) to achieve financial/life goals
(43%), b) to cover daily expenses (41%),
and c) in preparation for retirement
(12%).

Base population – Among savers (37% of Filipino adults)
17
In 2021, question on reasons for saving money was included.
30
Assessment of current status in terms of savings 18
Figure 2E. Satisfaction on Savings

Almost half (48%) of savers stated that
they plan to save more and 23% were
satisfied with their monthly savings in
2021. Meanwhile, 18% of savers
expressed the need to manage their
spending or budget effectively to save
more and 11% cited that they need to
earn more.
Base population – Among savers (37%

of Filipino adults)
18
In 2021, question on satisfaction on savings was included.
31
3. Loans
More Filipinos had borrowings in 2021 than in 2019, as the share of adults with
outstanding loans jumped to 45%, from 33% in 2019. This is equivalent to 11 million
more adults with debt in 2021 from 2019. Over the same period, the share of adults
with previous loans that were already paid grew only by two (2) ppts to 43% in 2021.
Borrowers, on average, had two outstanding loans in 2021, an increase from 2019.
Borrowing was the top coping strategy for emergencies and other financial needs.
Figure 3A. Outstanding Loans Figure 3B. Previous loans
Profile of adults with outstanding loans
Of the 45% of adults with outstanding loans, borrowing was more prevalent among
socio-economic class E, Mindanao, aged 30 to 59 years old, with at least vocational
education, business owners, workers, and women.
Figure 3C-1. Borrowers by Demographic Profile
32
Figure 3C-2. Borrowers by Demographic Profile
Detailed discussion on the demographic profile is provided below:
• Compared with 2019 results, loan incidence across SEC classifications grew
in 2021. The percentage of borrowers in class E, the lowest SEC, rose to 50%
in 2021 from 35% in 2019. Closely following behind in loan incidence were
class ABC1 (from 17% to 46% in 2021) and C2 borrowers (from 26% to 45% in
2021). These suggest the increased need to borrow was felt across all socio-
economic classes.
• Borrowing among males and females both grew in 2021. Loan incidence for
males substantially increased to 41% from 29% in 2019 but still lags behind
the 2021 figures for females which stood at 48%.
• By geographic location, borrowing was more prevalent in Mindanao and

Visayas which grew to 60% and 52% in 2021 from 35% and 41% in 2019,
respectively. Similarly, figures for urban and rural were higher at 44% and
45% in 2021, respectively.
FGD Insights
Business owners shared that they
may still be uncomfortable with
“Mayroon akong thinking na obtaining loans as it entails
huwag kang mangungutang ng commitment and can have a
ipang-ne-negosyo mo. Kasi ang devastating impact on the business if
negosyo, sugal iyan. Baka … not well thought of. Moreover, they
matalo ka.” mentioned that the stronger the
need for credit or the larger the
- NCR business owner, amount of the loan, the higher the
On perception about loans anxiety and hesitation in availing a
loan.
Those in the lower-income segment (classes D and E) borrowed more to augment

their finances as they slowly recover from the financial impact of the COVID-19
pandemic (low consumer demand, less working hours, lower income opportunities,
and unemployment) and the increasing prices of commodities.
33
FGD Insights
Despite hesitations in availing a loan

during the pandemic, some business "Noong pandemic humina talaga iyong
owners still borrowed to augment [goto business] at iyon lang inaasahan
their working capital in light of lower namin. Dumating sa point na kailangan
revenues and to keep their namin humiram kasi ayaw din naming
businesses afloat amid the
lockdowns.
itigil [ang goto business] kasi sayang
din yung dalawang taon at mga
nagastos bago namin [masimulan]
iyon."
- Batangas respondent,
On loans during the pandemic
Sources of borrowing
Borrowing from family and friends, and informal lenders both slightly grew in 2021
at 47% and 14%, respectively. This was more prominent among classes D and E.
However, the share of Filipinos who had advances from employers slightly declined
and remained low from three percent (3%) in 2019 to two percent (2%) in 2021.
Figure 3D. Informal Credit Sources

Base population – Among borrowers (45% of Filipino adults)
While MF NGOs remained the top formal source of credit, percentage of borrowers
who loaned from these institutions declined from 31% in 2019 to 23% in 2021, a
pattern similar to MF NGO account ownership. Nevertheless, formal borrowings
marked an overall improvement across all other formal lenders in 2021 compared
with 2019, increasing diversification in loan sources. There were more Filipinos with
outstanding debt from government institutions (12%), cooperatives (8%), financing
company (7%), banks (4%), and pawnshops (3%), with cooperatives registering the
34
biggest increase from 2019. MF NGOs were the top formal credit source for Luzon
and Visayas, while cooperatives were the primary source of formal loans in
Mindanao. NCR borrowers mainly sourced their formal loans from government
institutions.
Interestingly, while banks ranked high in account penetration at 23% and channel
of formal savings at 31%, it ranked low as a formal credit source at four percent (4%)
just above pawnshops in 2021, barely growing from three percent (3%) in 2019.
Residents from VisMin, class ABC, aged 50 and above, urban dwellers, business
owners, account owners, workers, and males were more likely to borrow from
banks.
Figure 3E. Formal Credit Sources

FGD Insights
Informal sources were the first recourse of low-income (classes D and E)
borrowers due to convenience, with funds immediately released with minimal
to no documentation requirements. Further, the flexible terms of informal
lenders (e.g., daily payments in smaller amounts) were perceived to be less
burdensome on the budget.
As to loan sources, business owners found the application process of banks

difficult, while they are more open to lending companies despite the high
interest given the more immediate access to money. Likewise, investors are
frowned upon since business owners are uncomfortable with other people
being involved in their decision-making.
FSPs were cognizant of the importance of incorporating financial education in

their loan products.
35
FGD Insights
“Kahit may immediate need naman, “Andoon iyong kaakibat na turuan ka on

hindi [mabilis umutang sa bangko]… how to manage your money kaya… during
Tapos mayroon mago-offer ng mas sa [loan] application [sinasabi namin ang]
mahal ng 5 percent, doon ka na lang purpose o yung dapat gawin … Hindi yan
kasi hindi kailangan ng collateral or makabayad ka [lang] sa [financial
titles, pwede na OR/CR.” institution] but… natutunan mo how to
improve [financially and] how to make
- Davao business owner,
money.”
On loan source
- FSP,
On educating borrowers
Purpose of the borrowing
As in 2019, loans in 2021 were primarily used to meet day-to-day expenses, at 50%
for outstanding loans and at 46% for previous loans. This is particularly true for
borrowers in Luzon except NCR and those in the SEC E segment. Next to basic
needs, loans were also used for emergencies and for achieving financial/life goals.
Almost half of surveyed business owners disclosed that their loans were for their
business (49%) and financial/life goals (40%). Likewise, a significant gap in loan
uptake was evident in employment status, with lower loan incidence for non-
workers than workers in 2021.
More SEC ABC adults intended to use their loans to build financial resilience and
improve productive capacity and future income through their business and
welfare-enhancing endeavors. By contrast, lower SEC group (classes D and E) were
more preoccupied with borrowing to augment daily expenses and paying other
loans.
Figure 3F. Purpose of Loan

36
Figure 3G. Comparison of loan purposes of SEC ABC and DE

Main considerations in borrowing

The top considerations of borrowers in 2021 were interest rate (49%), loan amount
(44%), and tenor or the length of period to pay for the loan (37%). These were the
same results in 2019, albeit tenor was the top attribute (51%) considered then.
Likewise, ease of application and flexibility of terms, both at 34%, were highly
considered in 2021.
Figure 3H. Considerations for Loans

37
Interest rate and loan amount were the most important factors for business and
non-business owners in borrowing. For business owners, ease of loan application
and tenor ranked next, while non-business owners were more concerned about
payment period and amortization.
Collateral Requirements
Considering the top credit sources (i.e., family and friends, MF NGOs, informal
lenders), majority of the loans (94%) did not require collateral. Meanwhile, the top
collaterals secured were luxury items such as jewelry (55%), ATM card (33%), vehicle
(16%), and land or condominium title (11%).
Perception on borrowing from formal financial institutions
In 2021, half of adult Filipinos perceived that borrowing from formal institutions was
difficult. Among formal institutions,19 applying for a loan from banks was perceived
to be the most difficult (65%), followed by credit card companies (56%), online
lenders (48%), cooperatives/NSSLAs (47%) and financing/lending companies (44%).
On the other hand, borrowing from MF NGOs (39%) and pawnshops (35%) was
perceived to be least difficult. Across formal institutions, the top reasons provided
on the perceived difficulty in borrowing were lack of documentary requirements,
insufficient IDs, low salary/income, and not having collateral.
Figure 3I. Challenges in Loan Application
Figure 3H. Challenges in Loan Application
Respondents can report more than one response.

Base population – Among those who found it difficult to apply for a loan in bank (65% of Filipino adults) and
in MF NGO (39% of Filipino adults)
Among business borrowers, majority said it was easy to apply for a loan from MF
NGOs, followed by pawnshops, cooperatives, and financing companies.
19
In 2021, question on ease of loan application loan per formal institution was included.
Previously, the question referred to any kind of loan.
38
Loan application in formal financial institution
In 2021, 96% of those who applied a loan from formal institutions were approved.
Of the four percent (4%) denied applicants, main reasons were due to lack of
documentary requirements (60%), unacceptable income level (27%), and lack of
collateral (21%). Moreover, the rejection rate was highest for online lenders and
banks while pawnshops and cooperatives recorded the lowest denied loan
applications.20 Nonetheless, 61% of denied loan applications were able to source
other providers such as family, friends, and relatives (62%) and informal loan
providers (37%).21
Satisfaction and burden with loans22
Majority of borrowers in 2021 were either satisfied (56%) or very satisfied (30%) with
the loan services provided, while a small percentage at five percent (5%) were
dissatisfied. The top reasons for respondents’ satisfaction across all financial
institutions were low interest rates, fast loan application process, and affordable
amortization. Dissatisfaction mainly arose from high fees, penalties, and interest, as
well as unfriendly loan officers.
Among borrowers, 59% declared that they can easily pay off their loans. Meanwhile,
those who claimed that they often had difficulty paying their loans remained
sizeable at 32%, while nine percent (9%) needed to apply for another loan to pay for
an existing loan.
Figure 3J. Financial Condition of Borrowers
Figure 3H. Challenges in Loan Application
20
In 2021, question on denied loan per formal institution was included. Previously, the
question referred to any kind of loan.
21
In 2021, questions on loan uptake and sources after denied loan application were included.
22
In 2021, questions on loan satisfaction, drivers of satisfaction, and financial
condition/burden on loan were included.
39
4. Insurance and Investment
Insurance penetration and demographic profile of adults with insurance
Insurance ownership declined to 17% in 2021 from 23% in 2019. Starting 2021,
PhilHealth23 was added in the listed types of insurance products in the survey
questionnaire. Inclusive of adults who reported to have PhilHealth, the percentage
of adults with insurance in 2021 would be 48%.
Figure 4A. Insurance Ownership
Profile of adults with insurance (PhilHealth considered as insurance)

Mindanao residents, aged 30 to 39 years old, business owners, with OFW household
members, and workers were more likely to own an insurance.
Figure 4B-1. Insurance Ownership by Demographic Profile
23
In the 2021 questionnaire, PhilHealth was included as one of the possible choices of
insurance products, an improvement from the 2019 questionnaire. Republic Act No. 11223 or
the Universal Health Care Act was signed into law last 20 February 2019.
40
Figure 4B-2. Insurance Ownership by Demographic Profile
Specifically, the following observations were noted:
• Similar with the observation in 2019, insurance ownership in 2021 was highly tied
to employment status, with segments such as young adults and non-working
having the lowest levels of adoption at six percent (6%) and 35%, respectively.
Nevertheless, it was worth highlighting that insurance uptake among those who
were unemployed more than doubled to 35% in 2021 from 15% in 2019. In
addition, the incidence of insurance ownership was notably lower among those
who are single, with primary education only, and those who are in economic
class E. The share of 4Ps beneficiaries with insurance also increased, albeit
marginally by two (2) ppts over the two-year period.
• Top gainers in 2021 were socio-economic class ABC1 and highly educated (at
least college graduates). Moreover, the gains in insurance ownership among
those who belong to economic class C2 (65%), residing in Mindanao (62%) and
aged 30 to 39 years old (60%) were more than twice higher than their 2019
estimates. Relatedly, insurance penetration remains considerably higher among
business owners, with a household member working abroad, working,
widowed/widower and married. More than half of these adults had access to any
or a combination of insurance products that would enable them to absorb and
recover from financial shocks.
• Compared with 2019, the gap of insurance ownership reversed and narrowed
across gender and localities. In particular, a slightly higher insurance penetration
rate was seen among men (49%) compared with women (47%) in 2021, reversing
an 8-percentage point gap favoring women in 2019. A similar observation was
noted between localities wherein adults in urban areas (50%) were more likely
to have insurance than those in rural areas (47%) in 2021.
41
Types of insurance products owned
In 2021, PhilHealth was the most common type of insurance owned, accounting for
81% of adults who reported to have insurance coverage. Although with much lower
shares, life insurance and microinsurance followed next at 16% and 13%,
respectively. Other insurance products owned include accident insurance, health
insurance (e.g., Health Maintenance Organization (HMO)), vehicle insurance, a
combination of life and non-life insurance, and fire insurance.
Table 4A. Types of Insurance Owned

Base population – Among those with insurance (48% of Filipino adults)
Channels used for buying insurance products24
In 2021, individual agents emerged as the primary channel of availing any insurance
type. Banks and mutual benefit associations (MBA) stood as far second channel for
buying life insurance and microinsurance, respectively.
By product type, nearly one-third (28%) of insured adults obtained PhilHealth

insurance through agents, while almost one-fourth (24%) gained access through
their affiliated company. Other sources like the government (19%) and MBA (15%)
also played a significant role in facilitating access to PhilHealth insurance.
Similarly, more than half of insured adults sourced life insurance and
microinsurance from agents. Results also indicated that banks seemed to offer
more life insurance products. Further, MBA and microfinance institutions served as
critical providers of microinsurance.
24
In 2021, question on channels of insurance products was included, an improvement of the
2019 questionnaire.
42
Figure 4C. Channels of Insurance Products

Base population – Among those with insurance (48% of Filipino adults)
Adequacy of insurance
More Filipinos in 2021 recognized the need for insurance, but over half (56%) stated
that their funds were inadequate while seven percent (7%) had not yet found the
right product that matched their needs. Fewer adults (16%) claimed that insurance
was not needed, a nine (9) ppts decline from the 2019 estimate. This indicates that
lack of money remained a key barrier to insurance ownership as observed in 2019.
Still, there was an eight (8) ppt reduction in the share of Filipino adults who reported
budget concerns as reason for not availing insurance. In addition, some adults (7%)
were already insured but felt the need for additional protection.
FGD Insights
Interviewees shared that insurance is

valuable, especially if the insurance is “Depende na rin sa gastusin. Sa
health-related. However, it was not budget. Mahal ng gastusin. Wala na
deemed as a priority at present as it was panghulog [sa insurance].”
perceived to be expensive.
Only those who had personal experiences - Batangas interviewee,

in realizing or claiming benefits from On the reason for not getting an
accidents, sudden hospitalizations, insurance
and/or death of loved ones were willing
to avail insurance despite having a tight
cash position. Moreover, some
interviewees with insurance availed due
to requirements imposed before the
release of loans.
43
Investment penetration
Financial investors among adults rose to 36% in 2021 from 25% in 2019. However,
excluding the contribution to government pension schemes (e.g., GSIS and SSS),
investment uptake showed a decline from 15% in 2019 to 10% in 2021.
Figure 4D. Investment Ownership
Profile of adults with investment (contributions to government pension scheme

excluded)

aged 20 to 39 years old, NCR residents, working, males, working, and business
owners were more likely to invest.
Figure 4E. Investment Ownership by Demographic Profile
44
Further details on the profile of adult population that were more or less likely to
hold investment were as follows:
• Similar with the 2019 survey results, investment uptake in 2021 remained
considerably higher among adults in the upper class ABC1 (37%) and who were
working (14%). However, these percentages were notably lower compared with
2019 levels at 55% and 37%, respectively. The 2021 survey results also indicated
that nearly one-fifth of adults aged 30 to 39 years old, and one-fourth of college
graduates were more inclined to invest than other market segments. Further,
NCR respondents made more investments in 2021 than residents from other
geographical areas.
• Consistent with 2019 observations, the incidence of investment ownership in

2021 was significantly lower among adults who were in socio-economic class E
(4%) and aged 15-19 years old (1%). In addition, only a small percentage of adults
with primary education (3%) and secondary education (7%) allocate funds to
invest.
• In terms of gender, the percentage of men with investments was still higher than
the percentage of women investors in 2021, but the gap between genders
declined to five (5) ppts from 11 ppts in 2019. In addition, the difference in the
incidence of having investment across locale further narrowed in 2021, with
urban areas (11%) only slightly higher than rural areas (10%).
• Similar to insurance, investment ownership in 2021 was highly tied to

employment status. Based on the demographics, working adults recorded
investment ownership of 14% as compared with five percent (5%) for non-
working adults, almost three times lower in terms of percentage points. Only
four percent (4%) of 4Ps beneficiaries invested suggesting that basic needs such
as food, clothing, and shelter precedes other expenses.
Profile of adults with active SSS contributions
In 2021, SSS penetration is higher among those who are working (75%), belonging
to the socio-economic class D (69%), with secondary education (49%). Interestingly,
enrollment in SSS was not prevalent among both rich (SEC ABC) and poor (SEC E)
Filipinos. Business owners and those not working are less likely to make
contributions in SSS.
45
Figure 4G. Investment Ownership in SSS by Demographic Profile
Types and channels for placing investments 25

Table 4B. Types of Financial Investment Owned
The most common type of investment in

2021 was contribution to pension
schemes at 96%, followed by placement
in Pag-IBIG Fund (23%) and time deposit
(2%). Only one percent (1%) of investors
owned stocks, bonds, UITFs, mutual
funds, and other managed investment
schemes.

Base population – Among investors (36% of Filipino adults)
In terms of sources, affiliated companies and agents were the top channels for
getting investment products. These findings corroborated the preceding
observation that investment ownership was highly skewed towards working adults.
25
In 2021, question on sources of investments owned was included.
46
Figure 4F. Channels for placing Investment (without pension)

Reasons for investing26
Majority of Filipinos invest primarily to protect themselves against emergencies

(57%) and achieve their life goals (53%). Further, four (4) in ten (10) adults hold
investment in preparation for their retirement, while the purpose of three (3) in ten
(10) investors were to grow their wealth and accumulate assets.
Figure 4H. Reasons for Investing (without pension)

Adequacy of investments27
Only four percent (4%) of the investors indicated that they were interested to invest
more. As is the case of insurance ownership, many Filipinos desire to invest but
more than half (63%) claimed that they lack money to do so. Moreover, 11% of
26
In 2021, a question on reasons for investing was included.
27
In 2021, question on adequacy of investments was included.
47
Filipino adults were still looking for the appropriate investment product, while
another 11% lack the knowledge on the investment process. Meanwhile, one (1) in
ten (10) surveyed adults did not feel the need for investment.
Figure 4I Adequacy of Investments
FGD Insights
Investments are seen as fail-safe in case of
significant financial setbacks. Respondents
disclosed that because of their current “Mahilig [ako] sa alahas kasi
state of having minimal or almost zero para sa akin investment iyon.
savings, availing these investment
Kasi halimbawa gipit na gipit ka,
opportunities is not a priority.
wala kang mautangan, pwede
When spontaneously asked about mo isangla [ang alahas].”
investments, only a few talked about - Dagupan interviewee,
acquiring real properties. Most On investing in jewelry
respondents mentioned that they would
rather acquire jewelry because it can easily
be converted into money through
pawnshops and other informal creditors.
48
5. Remittance
Incidence of sending and receiving money
Many Filipino adults continued to send (32%) and receive (45%) remittances in 2021,
albeit slightly lower compared with 2019 results at 37% and 48%, respectively.
Remittances were predominantly domestic in nature with only one percent (1%)
and 17% of adults sending and receiving cross-border remittances, respectively.
Remittance transactions were mostly done at least once a month, a frequency more
evident among adults receiving (46%) than sending (44%) money.
Figure 5A. Incidence of Sending and Receiving Money
More than half of domestic remittances were conducted by class ABC1 respondents
with more senders than receivers. Meanwhile, the reverse was true for adults in class
E with 37% receiving and 24% sending domestic remittances. Similar with the 2019
results, those from Visayas, adults aged 20 to 49, and females outperformed their
counterparts in domestic remittances, whether as senders or receivers. However,
the gender gap narrowed down to 6 ppts in 2021. In NCR, remittance activities were
significantly high among the 40 to 49 age group and those who were either working
or had a business.
Mode of Remittance
OTC remained as the most preferred remittance mode used by 88% of senders and
83% of receivers in 2021. Among these OTC options, pawnshops and MSBs were the
top choices used by over 70% of adults who sent and received remittances.
Following next was remittance transfer through agent banking which was used by
at least 15% of adults in 2021. Overall, senders considered convenience and
affordable fees as the top two factors in choosing a remittance channel in 2021
while reliability and security of money followed next.
49
FGD Insights
Among interviewees, extending help to family members emerged as a
common reason for pursuing remittance transfers. Their choice of OTC
options, especially pawnshops, as a remittance channel, was mainly due to
ease of transaction and familiarity with the process. Meanwhile for some, OTC
transactions also became an option when neither the sender nor the recipient
had access to banking/mobile apps.
“Kasi iyong [pawnshop] ang mas madali para sa akin… Hindi ganoon ka-hassle
kapag magpapadala, kumpara sa iba. Nakaka-ilang pumasok [sa bangko] dahil
parang medyo class ang dating, hindi katulad sa [pawnshop] na naka-open lang
siya, kumbaga pang masa siya.”
- Cebu interviewee,
On preference for pawnshops for remittance transfers
Notably, account-based fund transfer ranked as the next preferred mode for
remittances. Almost a third of adults were using it for sending and receiving money,
a sharp contrast from less than five percent (5%) share two (2) years prior. This uptick
was mainly due to the increase in the share of adults using online banking/mobile
app from less than one percent (1%) in 2019 to over 20% in 2021 for both sending
and receiving money.
Figure 5B-1. Remittance Channels (Sending Money)

Base population – Among those who sent money (32% of Filipino adults)
Figure 5B-2. Remittance Channels (Receiving Money)

Base population – Among those who received money (45% of Filipino adults)
50
Satisfaction with remittance channels28
The satisfaction ratings across different remittance channels ranked high among
users as these channels offered an easy and fast fund transfer process and
immediate/real time receipt of remittance.
Figure 5C-1. Satisfaction with Remittance Channels (Sending Money)
Base population – Among those who sent remittance (32% of Filipino adults)
Figure 5C-2. Satisfaction with Remittance Channels (Receiving Money)
Base population – Among those who received remittance (45%

of Filipino adults)
28
In 2021, questions on the satisfaction and drivers of satisfaction and dissatisfaction with
remittance services were included.
51
6. Payment
Making payments
In 2021, 84% of Filipinos made payments which makes it a widely used transaction.
Of the 65.1 million adults who made payments, 82% of the respondents paid
merchants/private institutions (P2M), while only 35% made payments to the
government (P2G). On the one hand, P2M payment streams were mainly bills
payment (63%) and OTC purchases (57%), followed by payment for services (36%)
and online transactions (27%). On the other hand, P2G payment streams were
mostly composed of contributions (19%), licenses (15%) and taxes (11%).
Figure 6A. Incidence of Making Payments

By area, Mindanao (92%) has the most respondents with payment transactions in
2021, while South Luzon registered the lowest share at 79%. By SEC, the upper
income class ABC has the highest incidence of sending payments at 91%,
significantly higher than those from the class E at 78%.
Figure 6B-1. Sending Payment by Demographic Profile
By age group, middle-aged individuals (30 to 49 years old) had a 90% incidence of
making payments. Females (87%) continued to make significantly more payments
than males (82%), highlighting women’s greater role in payment transactions.
Nonetheless, the gender gap in favor of women on sending payments has
substantially narrowed down from 13 ppts in 2019 to five (5) ppts in 2021.
52
Higher incidence of payment transactions in 2021 was also observed among those
who were working (87%) and owned a business (92%), compared with those who
were not working (80%) and who did not have their own business (82%). By
educational attainment, adults with at least a vocational degree are more likely to
have payment transactions than those with only elementary and/or secondary
education.
Modes of making payments
As in 2019, cash was still the dominant mode of paying among those who made
payments to the private sector and the government in 2021.
Payments made to private sector remained predominantly cash-based, particularly

for services and in-store purchases with more than 90% of payors having done so in
cash. Nonetheless, the shift to cashless payments has started. From almost zero in
2019, payment terminals and mobile app usage among payors have grown
considerably in 2021 to 13% and nine percent (9%) respectively. Cashless payments
for online purchases have also jumped from a measly one percent (1%) in 2019 to
18% of payors in 2021.
Payments to government, particularly licenses and fees, were still essentially cash
based. Transactions such as loan amortization, social security contributions, and
taxes registered a lower percentage of cash payors because of the use of auto-
debit/salary deduction arrangements.
53
Figure 6C. Payments Made through Payment Channels
Base population – Among those who made payment (84% of Filipino adults)

FGD Insights
Increased use of online banking/mobile
apps reflects a progressive shift towards “[Sa gig job] iyong payment naman po
digital payments. These online payment is thru [e-wallet] lang din. Kaya hindi
channels helped in weathering mo na kailangan lumabas para
movement restrictions imposed by maningil.”
months of COVID-19 lockdown measures.
On their use of e-wallet for payments
54
Satisfaction with payment services29
Despite the preference for cash payments, satisfaction rating was the highest for
payments made via online banking. The 2021 survey revealed high overall
satisfaction ratings for all payment methods among those who transacted through
these channels: 97% for online banking, 95% for both cash and payment terminals,
and 94% for auto debit transactions.
A higher number of respondents who made payments cited that online

banking/app (94%), ATM/POS (93%), and payment terminals (88%) were fast and
easy. More paying adults attributed their satisfaction with non-cash channels to
no/low processing fees, except ATM/POS, as compared with cash. Meanwhile, the
satisfaction on cash usage was attributed to its fast and easy nature (84%) as well
as certainty of payment (54%).
FGD Insights
For digital payments, speed and convenience drove customer satisfaction.
“Mayroon akong [contact] sa Manila but the problem is paano ipapadala ang
bayad. So doon kami nag-online banking kasi kailangan na matanggap kaagad
ang payment [para sa] bidding. So diyan ako nag-umpisa ng online [banking].”
On their reason for using digital payments
Figure 6D. Satisfaction Ratings on Making Payment through Payment Channels
29
In 2021, question on satisfaction rating on channels for sending payments and reasons for
the satisfaction/dissatisfaction were included.
55
Figure 6E. Reasons for Satisfaction on Payment Channels

Receiving payments
Incidence of received payment transactions was 65% in 2021 or 50.2 million adult
Filipinos, higher compared with 43% in 2019. The government’s response to the
COVID-19 pandemic30 has contributed to the higher incidence rate as 43% of
respondents received payments from the government (G2P). In particular, 35% of
surveyed adults have received financial assistance. Meanwhile, 37% of adult
Filipinos received payments from merchants/private institutions in the form of
salaries (25%), income from business (11%), loan proceeds (1%) and dividends (1%).
Figure 6F. Incidence of Receiving Payments

Base population – Among those who received payments (65% of Filipino adults)
30
The national government launched social amelioration programs (SAP), a financial
assistance to support those whose income was disrupted/affected by the
lockdowns/quarantine measures imposed to restrict the spread of the COVID-19 virus.
56
A larger percentage of respondents who received payments in 2021 were from SEC
ABC (67%), adults aged 30 to 49 years old (75%), those who are working (76%),
business owners (74%), and college graduates (76%), compared with their
counterparts. Further, Mindanao area (75%) registered the highest percentage of
payment recipients among major area groupings, a reversal from the 2019 survey
results which identified Mindanao as having the least incidence (32%). The gender
gap in favor of men has narrowed from 16 ppts in 2019 to eight (8) ppts in 2021.
Figure 6G. Receiving Payment by Demographic Profile
Modes of receiving payments
In 2021, cash and check were generally the dominant forms in receiving payments
from both the government and private sector (business/personal sources).
Disbursements from the government such as financial assistance (71%), salaries

(64%), and benefits (62%) were mainly received in cash, while more than half of
pension payouts (54%) and loan proceeds (50%) were received through an account.
Notably, 23% of financial assistance was disbursed through cash out agents.
In the private sector, 2021 payments received in the form of dividends (90%),
business income (89%), loan proceeds (79%), insurance payouts (74%), and salaries
(70%) were also predominantly received in cash, but the percentage was lower
compared with 2019 results. Meanwhile, a relatively higher proportion of salaries
(28%), insurance payouts (26%) and loan proceeds (21%) were released through an
account in 2021 from 2019. These indicate a potential for initiatives to encourage
distribution via transaction accounts, particularly in the informal private sector
services where daily wage payments are the practice.
57
Figure 6H. Payments Received through Payment Channels


58
Satisfaction rating on receiving payments and drivers31
The satisfaction ratings in receiving payments through different channels among

those who transacted through these channels were high in 2021 at 98% for cash or
check, and 94% for both account and cash agents. Being fast and easy continued to
drive satisfaction on receiving payments thru cash (94%), but such perception was
challenged by receiving payments through accounts which was slightly higher at
95%, followed by cash agent at 90%. Furthermore, the percentage of adults that
cited no/low processing fee as reason for their satisfaction was lower for cash at 39%
compared with other channels such as cash agent at 55% and account at 42%.
These indicate that alternative channels were becoming more convenient and less
costly for many Filipinos.
Figure 6I. Satisfaction Ratings and Reasons for Satisfaction on Receiving Payments through
Payment Channels

31
In 2021, question on satisfaction rating on channels for receiving payments and reasons for
the satisfaction/dissatisfaction were included.
59
7. Financial Access Points
Access points refer to institutions or places where a person can obtain financial
products and services and perform financial transactions. The 2021 survey results
showed that although there was high awareness of financial access points among
Filipino adults, accessibility of these FSP remains to be a challenge, which can
hinder Filipinos from transacting via these channels. Among the available access
points, e-money agents have the most significant improvement in both awareness
and accessibility between 2019 and 2021.
Awareness of access points

Figure 7A. Awareness of Financial Access Points The 2021 survey results showed that
93% of Filipino adults were aware of at
least one financial access point. They
remained most aware of banks (80%),
ATMs (75%) and pawnshops (69%).
Meanwhile, less than half of the adult
population were aware of MF NGOs
(45%), insurance agents (38%), and
NSSLAs (12%).
By area, awareness of at least one financial access point in 2021 was highest in South
Luzon, overtaking those residing in NCR. However, more NCR respondents were
aware of ATMs, e-money agents, bayad/payment centers and money changers,
while more North and Central Luzon adults were aware of banks, pawnshops,
remittance agents, lending institutions, cooperatives, MF NGOs, insurance agents,
and NSSLAs. Meanwhile, the percentage of awareness of the different types of
access points was generally lowest in the Mindanao region during the same period.
Respondents belonging to socio-economic class ABC, those aged 30 to 39 years old,

business owners, and 4Ps recipients had a significantly higher awareness of at least
one financial access point in 2021 compared with their counterparts.
Although figures remained generally high in 2021, the level of awareness of most
types of access points declined compared with 2019 results, except for e-money
agents, banks, and insurance agents. In particular, awareness of e-money agents
rose significantly to 61% in 2021 from 36% in 2019 while awareness of cash agents
slightly improved to 55% in 2021 from 54% in 2019.32
32
Agents are retail outlets (e.g., small shops, convenience stores, supermarkets, and
pawnshops) that are contracted by financial institutions to provide its customers with
financial services such as deposit, withdrawal, bills payment, and fund transfer, among
others. The agent network expands the reach of financial services beyond traditional
branches.
60
Figure 7B. Awareness and Accessibility of Financial Access Points
*Respondents can report more than one response

Base population – Among those who are aware of access points (93% of Filipino adults)
Accessibility of access points
Among those who were aware of financial access points, many adults indicated that
ATMs (48%), pawnshops (45%) and e-money agents (42%) were the most accessible
touch points. Meanwhile, lending institutions, bank cash agents, insurance agents,
and NSSLAs exhibited low levels of accessibility.
Accessibility across the different access points decreased between 2019 and 2021,
except for e-money agents, banks, money changers, cooperatives, and insurance
agents. Similar with awareness of access points, accessibility of e-money agents
rose from six percent (6%) in 2019 to 42% in 2021. Meanwhile, only three percent
(3%) of adults had access to bank cash agents.
61
8. Consumer Empowerment
Consumer empowerment and financial inclusion go hand-in-hand to allow the safe
participation of consumers, especially the most vulnerable, in the formal financial
system.
Financial Literacy
Financial literacy is the level of knowledge about financial concepts and principles.
It contributes to consumers’ capability in making sound financial plans and
decisions to be financially healthy.
Awareness of financial products and services
Part of financial literacy is the knowledge and understanding of available financial

products and services and the ability to use them to manage one’s financial
resources.
Figure 8A. Awareness of Financial Products
and Services
In 2021, deposit products were the most
widely known product type among
Filipino adults with 81% being aware of
them. This is followed by lending (70%),
remittance (68%), and pawning (67%).
Despite being the most common form of
account owned, e-money ranked fifth
(5th) at 66%, in terms of familiarity to
respondents. Notably, awareness of e-
money was driven by the younger
generation (aged 15 to 39 years old),
those residing in NCR, and who are in
class ABC. No significant gap across
gender and employment status was
reported in terms of awareness of e-
money account.
Meanwhile, digital financial products and services were the least known to Filipinos.
In particular, less than half of respondents were aware of virtual currency/
cryptocurrency (6%), electronic/mobile banking (44%) and online/mobile payments
(45%). Knowledge of these digital financial products was highest in the NCR region,
those who belong in the socio-economic class ABC, young adults aged 20 to 29
years old, urban-dwellers, and workers. Of the small fraction of respondents who
were aware of virtual currency/cryptocurrency, only 19% tried using it. 33
33
In 2021, question usage of virtual currency/cryptocurrency was included.
62
FGD Insights
Consumers mostly learned about these digital platforms through family and
friends.
“Sa kapitbahay, pwedeng maghulog doon “[E-wallet] ang ginagamit [ng mga
tapos kung may laman ang [e-wallet] niya, pamangkin ko]. Halimbawa,
pwede ka na lang sa kanya maghulog kung magpadala iyong Papa nila ng budget,
magbabayad ng kuryente at tubig.” doon na [ipadadala sa e-wallet].”
- Davao interviewee, - Dagupan interviewee,
On where they learned about e-wallet On e-wallet usage by family members
Knowledge of financial concepts
To gauge the level of financial literacy, respondents were asked six (6) questions
which measure knowledge of financial concepts such as division, risk-return
tradeoff, diversification, inflation, simple and compounded interest rates.34
Only two percent (2%) of Filipinos were able to correctly answer all the six (6) basic
financial literacy questions in 2021. At least half of the 6 financial literacy questions
were correctly answered by 69% of adults. Roughly two (2) out of ten (10) adults
obtained either two (2) or four (4) correct answers while one (1) in ten (10) Filipinos
provided five (5) correct answers. Very few (2%) answered all six (6) questions
correctly, seven percent (7%) only got one correct answer while one percent (1%)
obtained a zero (0) score.
Figure 8B. Correct Answers on Financial Literacy Questions
34
In 2021, questions on basic arithmetic division and investment concepts were included.
63
In 2021, nine (9) out of ten (10) Filipino adults demonstrated basic arithmetic-
division skills. Majority of the respondents were aware of the higher risk associated
with higher return in investing at 58% and understood the concept of portfolio
diversification (i.e., not putting all eggs in one basket) at 61%. However,
understanding the concepts of inflation and interest rates remained a significant
challenge. Notably, less than half (42%) of the respondents correctly identified the
effect of inflation to their purchasing power. This is even lower than the 55% share
of adult population observed in 2019. There was no significant improvement in
interest rate comprehension between 2019 and 2021. The share of adult population
that could calculate simple interest earned on a savings account at the end of one
year was unchanged at 32%. Meanwhile, fewer (30% from 33% in 2019) adult
Filipinos could calculate compounded annual interest rate over five (5) years.
Figure 8C. Correct Answers on Inflation and Interest Rates Questions
Figure 8D. Correct Answers on Financial Literacy Questions
The succeeding discussion describes the demographic segmentation of the

knowledge in inflation and interest rates.
• There was lower awareness on inflation rate among the younger population
(15 to 29 years old) than the older survey participants (those between 30 and
59 years old). Only 28% of those residing in Mindanao, which are almost half
of NCR respondents (54%), provided the appropriate answer on the inflation
rate question. Further, urban dwellers (44%) were more knowledgeable on
inflation rate than rural dwellers (41%) while there was no significant gender
gap observed. Meanwhile, 32% of adults in 2021 thought that inflation was
based on consumers’ choice on goods to purchase rather than the increase
in prices and services.
64
• For both simple and compounded interest rates, there were more high-
income earners and older respondents who provided the correct answer
than their counterparts in 2021. Knowledge on the computation of simple
interest rate was more prominent in Visayas than in Luzon (including NCR)
and Mindanao, while the reverse is true for compounded interest rate. On the
other hand, two (2) out of ten (10) adults in 2021, fewer than three (3) out of
ten (10) adults in 2019, were unaware on how their savings grow, particularly
Visayas residents, classes D and E, rural dwellers, and aged 15 to 19 years old.
To promote financial literacy among Filipinos, the BSP and partner organizations
conducted financial education programs for various targeted audiences. However,
only seven percent (7%) of the respondents attended a financial literacy
program/session. Nevertheless, majority (54%) or 41 million Filipino adults
expressed interest to attend financial literacy training sessions particularly those
from Mindanao and Visayas areas, class C2, and rural localities.
Financial Capability35
Financial capability encompasses the knowledge, attitudes, skills, and behaviors of

consumers with regard to managing their resources and understanding, selecting,
and making use of financial services that fit their needs.36
Budgeting
Around 35 million Filipino adults (46% of

respondents) had a personal budget. By area,
those from NCL had the highest percentage of
individuals who had a personal budget (55%)
followed by those from Mindanao (47%).
Meanwhile, fewer individuals created a budget in
Visayas region (38%). In terms of socio-economic
segments, budgeting was highest among class ABC and lowest among class E.
Further, more female respondents, aged 30 to 39 years old, workers, with household
member working abroad, and business owners tend to have a budget compared
with their respective counterparts. Meanwhile, there was a minimal gap between
urban and rural dwellers when it comes to budgeting.
35
In 2021, questions to assess financial capability were included.
36
Adopted from the World Bank (WB).
65
FGD Insights
Adults from socio-economic classes D “Iyong kinikita ko araw-araw sa

and E, showed that food and utilities pasada, kumikita ako ng P600 a day. May
such as electricity and water bills or the budget ako P400 pambili ng karne.
so-called “non-negotiable expenses” are
top priorities in managing their money
Tapos iyong natitira, sine-save ko na lang
while any remaining cash will be saved. din.”
-Dagupan interviewee,
On budgeting
ng
Financial planning and long-term goals
Majority of households plan ahead (80%) and were confident in meeting their long-
term financial goals (66%). These were mainly evident among high-income
households (class ABC), NCR residents, more educated (at least vocational degree),
and females.
Figure 8E. Financial Planning and Long-term Goals
FGD Insights
Those from classes D and E have low
consideration towards the future. This is
mostly true on their perception of “[Gusto ko] mag-start ng business
budgeting and planning. Specific long-
pagkatapos ng pag-aaral. Sa ngayon wala
term goals like putting up a small
business was mentioned but not
pa kong naiisip kung ano[ng business].
considered as a current priority. FGD Mas importante ngayon may pera.”
respondents were apprehensive -Cebu interviewee,
whenever asked about future plans. On future financial plans
They explained that they are unable to
plan ahead since every day is a struggle.
Savings and budgeting are technically
considered as wants among Class E
rather than needs.
66
Sources of information for financial decision-making
Respondents’ decisions about choosing financial products were mostly influenced

by television advertising (41%), best buy guidance (37%), and social media
advertising (32%). The influence of television advertisements on choice of financial
products was most significant among Luzon (including NCR) and urban residents.
Meanwhile, respondents from Mindanao and Visayas, class ABC, and rural areas
were mostly influenced by best buy experience.
Perceptions on money
More than three-quarters of Filipino adults claimed that they kept a close watch on
their financial affairs (77%) and carefully contemplated their purchases (75%) in
2021, particularly those from NCR, socio-economic class C2, and those aged 20 to 29
years old. In contrast, fewer respondents from class ABC1 considered affordability in
their consumption decisions.
Figure 8F-1. Perception on Money
Seven (7) out of ten (10) Filipinos strived to achieve their long-term financial goals in
2021. This was most evident among residents of NCR, class ABC, and urban areas.
Between genders, female respondents tended to set and strive for long-term goals
than male respondents. This was also true among business-owners. There was also
a significant gap in setting financial goals between young (15 to 19 years old) and
older adults.
Figure 8F-2. Perception on Money
67
More than half of the population (53%) were prepared to risk liquidity for savings
and investment, particularly those from class ABC and adults aged 30 to 39 years
old. Meanwhile, around 62% of Filipino adults believed that money was there to be
spent, 37% tended to live at the moment, and 36% achieved more satisfaction on
spending money than long-term savings.
Consumer Protection37
Consumer protection is about safeguarding the well-being and interests of the

consumers. It builds trust and confidence which are needed to increase acceptance
and usage of financial products and services. Effective complaint handling
mechanisms is also a key driver of trust.
Scams encountered
Figure 8G. Incidence of Financial Scam
Frauds and scams harm consumers and
discourage them from using financial
products and services. In 2021, 11% of Filipino
adults (of which 73% owned an account) lost
money due to scams such as lottery or prize
scams (7%), investment scam (2%), and
phishing (2%).
Figure 8H. Incidence of Financial Scam by Type of Scam
Issues encountered with financial service providers
In 2021, 17% of Filipino adults (of which 77% owned an account) encountered issues
when availing financial products and services. Top concerns were the back-and-
forth process to complete transactions (37%) and system downtime which affected
the availability of financial services (35%).
37
In 2021, questions on scams and issues with financial products and services, and on
reporting of such concerns to relevant institutions were included.
68
Figure 8I. Top Issues Encountered in Using Financial Products/Services

Base population – Among those who encountered issues (17% of Filipino adults)
Reporting of financial consumer complaints
A large majority (82%) of consumers who experienced an issue, problem, or scam

in 2021 never reported the incident to the concerned FSP due to lack of
time/perceived inconvenience of the process (55%).
FGD Insights
In the FGDs, non-reporting of issues due
to lack of time and perceived “Kasi kumbaga marami pang proseso
inconvenience of the process resonates na dadaanan. Sayang sa oras kaya
especially with those in socio-economic okay na lang iyong [hindi
classes D and E because time spent magreklamo] tutal kikitain ko naman
reporting an incident is time spent away
ang P200. Pero kapag malaki na, doon
from income-generating activities.
na [lang magrereklamo].”
Nonetheless, when incidents are
reported, many get resolved with 70% of - Cebu interviewee,
the reported cases in 2021 successfully On the reason for not reporting a scam to
addressed by FSPs. the concerned financial institution
69
Figure 8J. Incident Reporting to Concerned FSP
Base population – Among those who *Respondents can report more than one response
encountered issues/scams (23% of Filipino adults) Base population – Among those who did not report
issues/scams encountered (19% of Filipino adults)
Of those whose issues were not resolved by FSPs, majority (79%) escalated the issue
to the relevant financial regulator (i.e., BSP, Securities and Exchange Commission,
and Insurance Commission). Lack of knowledge on whom to contact (67%) was the
main reason of the few who did not report to the regulator. This was especially true
for those in the VisMin area, in socio-economic class C2, living in rural areas, and
aged 50 to 59 years old. Other reasons cited are lack of knowledge on the regulator’s
contact information (33%), and time constraints or perceived hassle of contacting
the regulators (33%). Walk-in (43%) was the primary method used by consumers to
file a report. This was followed by reporting via e-mail (22%) and social media
channels (14%).
Figure 8K. Incident Reporting to Financial Regulator
Base population – Among those who Base population – Among those who reported
reported issues/scams encountered but issues/scams encountered but not resolved who did
not resolved (1% of Filipino adults) not contact regulators (less than 1% of Filipino adults)
Financial products and services that need regulatory attention
When asked on the financial products and services that needed more regulatory
attention and support from the BSP and other financial regulators, 46% of
respondents indicated accounts and savings, followed by loans (17%) in 2021.
Documentary requirements, consumer assistance, and security measures against
70
scammers and hackers were the priority areas that the government needs to act on.
Out of those who selected accounts and savings requiring attention, 59% had an
account while the remaining 41% were unserved, showing that proper attention
and regulatory support on these financial products could alleviate account
ownership and financial resiliency.
Figure 8J. Financial Products and Services in Need of Attention and Support

Base population – Among those who said regulatory support is needed (88% of Filipino adults)
In 2021, majority (83%) of respondents agreed that BSP’s programs and policies
helped increase access to financial services, particularly those from NCR, Visayas,
and the ABC class.
FGD Insights
It was also mentioned by FSP participants in the FGDs that the government
and financial regulators could further provide support in areas of
infrastructure improvement, regulations and policies addressing concerns on
security, and campaigns on awareness and disposition-setting. In particular for
infrastructure, stable internet connectivity in remote areas and a centralized
and accurate database for customer information are needed. Regulators may
further revisit policies to strictly implement cybersecurity laws. FSPs also
underscored collaborative efforts between financial institutions and the
government on awareness campaigns, effective partnership with local
government units (LGUs), and incentivizing use of digital transactions.
“[BSP] can reach out [to] LGU’s and … “Iyong kailangan namin from the BSP is
make sure that LGUs are also educating to really drive that [consumer] awareness
their constituents, ... [support and] open and drive the [financial] education to [the
the door for fintechs.” public].”
-FSP interviewee, -FSP interviewee,
On support needed from the BSP On support needed from the BSP
71
9. Financial Needs and Health
There are generally four (4) types of financial needs that an average consumer
encounters at one point in their lives: meeting goals, resiliency, liquidity, and
transfer of value.38 As transfer of value has been extensively discussed in the section
on payments and remittances, this section examines the three other scenarios.
Meeting Goals is being able to provide for larger life or work goals that cannot be
paid from a single income cycle. Resiliency is being able to meet larger expenses
that have resulted from an unexpected event. Liquidity is being able to meet
expenses within an income cycle. These financial needs were assessed in 2021
through the following scenarios:
Figure 9A. Categories of Financial Needs
Frequency of and amount spent on financial needs
Among the different financial needs, liquidity had been the most pressing issue in
the past year as 66% of adult Filipinos experienced liquidity issues at least once. This
was followed by resiliency concerns at an average of 46% and meeting goals at
around 37%. Figure 9B shows the frequency of and average amount spent for each
financial need.
38
The needs-based approach is a measurement model developed by insight2impact (i2i), a
resource center jointly hosted by Center for Financial Regulation and Inclusion (Cenfri) and
FinMark Trust (FMT) in South Africa which aims to catalyze the use of data to enable
evidence-based policies and regulatory approaches as well as client-centric product design
in the pursuit of sustainable financial inclusion.
72
Figure 9B. Frequency of Financial Needs
Note: Totals may not add up to 100% due to rounding.
Liquidity concern was the most frequently experienced financial need by Filipinos.
Specifically, three (3) out of ten (10) Filipino adults were unable to meet regular
spending needs at least once a month. This problem was more pronounced in class
E. The amount needed to meet a liquidity requirement almost doubled to PhP
33,137 in 2021 from PhP 11,606 in 2019.
Around five (5) in ten (10) Filipinos faced resiliency needs arising from unexpected
incidences in the family (e.g., sickness, death, or loss of job) at least once in the past
year. The average spending needs of these unexpected incidences was PhP 9,159.
Meanwhile, almost four (4) in ten (10) adults experienced a financial need due to
emergencies brought by natural calamities at least once in 2021, with an average
spending need amounting to PhP 7,114. In particular, 41% of SEC E respondents
reported experiencing the said financial need at least once, compared to 45% of
SEC ABC adults.
Spending for goals was the least pressing financial need in 2021. Most of those who
experienced the need to buy expensive things only did so once or more than once,
but not frequent. Majority (54%) of those in class ABC spent for this purpose at least
once in the past year, while only 37% and 36% of those in class D and E respectively
did so.
Mechanisms used to address financial needs

Borrowing was the main coping mechanism of Filipinos across all financial needs,
followed by use of savings and income. Claiming insurance was the least used
mechanism even for resilience needs where risk protection could have been useful.
Financial assistance was tapped primarily for resilience needs.
73
Figure 9C. Source of Funds for Financial Needs

Across financial needs, classes D and E Filipinos generally relied heavily on

borrowing, selling assets, and government financial assistance than class ABC
respondents.
Figure 9D. Source of Funds for Financial Needs by Socio-economic Class

74

75
FGD Insights
Reliance on borrowing was predominantly driven by Filipinos in economic
classes D and E on the back of low income and little to no savings. Borrowing
becomes a lifeline when they cannot provide for the present.
“Kasi minsan sa kuryente, hindi mo “Ako, every month [umuutang].

inaasahan na lalaki yung kuryente mo Dumating din ako sa point na… monthly,
at kukulangin ang budget… Kaya hihiram ako ng pang-survive. Then, pag
kailangan mong manghiram talaga.” sweldo na ni husband, babayaran [ko na
ang mga utang].”
On the need to borrow due to unexpected - Batangas interviewee,
expenses On the frequency of her borrowing
Across all scenarios, informal sources were the top provider of loans. Informal
sources which include family and friends and 5-6 lending schemes are preferred
because they provide quick access to funds compared with formal sources
where the credit evaluation process usually takes time. In addition, the payment
terms allowed by informal sources better match the paying capacity of
borrowers considering that small amounts can be paid on a daily or weekly
basis.
“Mas mabilis po sa tao. Mas madali ka “…para sa akin hindi na mabigat kasi
makakahiram. [Sa bangko], isang P100 lang sa isang araw [ang
linggo na hindi pa dumadating.” ibabayad], tapos sa isang araw
magtitinda ka [para may maibayad].”
- Batangas interviewee,
On why he prefers borrowing from friends - Cebu interviewee,
On her preference for 5-6 schemes despite
high interest charges
Financial Health39
The capacity to handle day-to-day finances (“every day”), overcome financial shocks
(“rainy day”), and set and strive to achieve long-term financial goals (“one day”) are
the key elements of financial health. As a person’s financial capability improves,
financial health or well-being likewise will be enhanced. Financial health is also
associated with the capacity to be confident and prepared for one’s finances and
future. Thus, financial resiliency is achieved.
39
In 2021, questions to assess financial health were included.
76
Figure 9E. Financial Health
Based on the 2021 survey, more Filipinos experienced concerns on the "every day"
and "rainy day" aspects of financial health. Nonetheless, they were generally
optimistic about their future.
Almost half (46%) of the respondents were concerned that their finances controlled
their lives. This was mostly true across all segments particularly those aged between
20 to 59 years old. Four (4) in ten (10) or 41% adult Filipinos found it difficult to meet
their cost of living, which was more acute in class E (52%). On a positive note, only
14% believed that they cannot fully meet their current financial obligations most of
whom were from class E (19%) and among the younger population (25%).
Meanwhile, almost half of respondents (46%) were concerned that their savings will
not last for the "rainy days", particularly from classes D and E. Only 23% felt they
cannot handle emergency expenses, with high disparity between rich and poor.
This sentiment was shared more than twice higher in class E (33%) than class ABC
(16%). Only 28% of Filipinos considered that gift giving would strain their monthly
finances.
The 2021 survey also revealed that more Filipinos generally have a positive financial
outlook as they believed that they a) were on track to meet their financial goals, b)
had a clear perspective of their financial goals, and c) felt secure about their
financial future. NCR and class ABC respondents were more likely to hold this
optimistic view. However, there was higher negative sentiment around current
financial situation keeping respondents from acquiring wants, which was
particularly more pronounced in class E (44%) than in class ABC (31%) and D (38%).
77
Figure 9F. Financial Health by Socio-economic Class
FGD Insights
FGD respondents particularly from class

DE homes tend to turn to informal credit “Iyong panghihiram ng pera, para
sources once immediate sources of mayroon lang panggastos [sa araw-
money were exhausted, forecasted
araw]. Tapos babayaran mo ulit.”
expenses suddenly increase, or prices of
commodities shoot up. Credit from -Cebu interviewee,
informal sources felt less an obligation for On meeting living expenses
them because terms can be agreed on
depending on their capacity to pay.
78
10. Digital Access
Electronic device ownership
In 2021, 93% (equivalent to 71.5 million) of

the total adult population had electronic Figure 10A. Electronic Device Ownership
devices, a significant increase from 70%
in 2019. This was mainly due to the
upsurge in adults with smartphones at
81% in 2021 from 51% in 2019. Meanwhile,
ownership of basic phone at 16% and
laptops at seven percent (7%) slightly
declined in 2021 compared with 2019
results, at 18% and eight percent (8%),
respectively. Tablets were the least
owned device in 2021 covering only five
percent (5%) of Filipino adults.
Figure 10B. Electronic Device Ownership by Type of Device
Figure 10C. Mobile Phone Ownership
In 2021, 92% of Filipino adults owned a

mobile phone (either smartphone or
basic phone), higher than 69% in 2019.
79
Profile of electronic device owners
Owning an electronic device, particularly smartphones and tablets, was more

prevalent among the rich (SEC ABC) than the middle class (SEC D) and poor (SEC
E). Moreover, younger segments (39 years old and below) had the highest ownership
levels within the range of 97% to 99%, while older segments (50 years old and
above) have ownership levels falling below 90%. Notably, the percentage of NCR
respondents with smartphones at 90% was highest across geographical areas. On
the other hand, SEC E adults, older Filipinos (aged 50 and above), and Mindanao
residents were more likely to own a basic phone.
Figure 10D. Electronic Device Ownership by Demographic Profile
The increase in the electronic device ownership was more pronounced among
Filipinos aged at least 50 years old and residents of Mindanao. Furthermore, a higher
percentage of SEC D respondents, VisMin and rural residents, young (15 to 19 years
old) and middle-aged Filipinos (30 to 59 years old), accountholders, and females
owned a smartphone in 2021 vis-à-vis 2019. An increase in basic phone ownership
was also observed among seniors (aged at least 60 years old) and SEC E segment.
In addition, the ownership gap across geography, income, locality, age, and gender
narrowed in 2021.
80
Figure 10E. Smart Phone Ownership by Demographic Profile
FGD Insights
FSPs acknowledged that the

pandemic has accelerated digital “Digital companies … have really
adoption among customers. The accelerated digital adoption kasi
significant growth in electronic kailangan ng mga tao, sadly, dahil sa
device ownership and internet COVID. Pero ang positive side naman
access has the potential to boost doon, it became an opportunity for
usage of digital financial services. people to adopt.”
-FSP interviewee,
On digital adoption
Access to the internet
The share of the adult population using the internet grew from roughly half (53%)
in 2019 to more than three-fourths (77%) in 2021 or equivalent to 59.2 million
Filipinos. Most internet users were accessing the internet through mobile data at
81%. Other channels of internet usage include home subscription (30%), public Wi-
Fi (11%), and office connection (3%). Among these channels, only home subscription
and public Wi-Fi recorded a notable increase from the 2019 levels.
81
Figure 10F. Internet Access by Type of Channel

Base population – Among those who had internet access (77% of Filipino adults)
Profile of internet users
Internet users were mostly in SEC ABC, aged 15 to 39 years old, and residing in NCR
and urban areas. The surge in internet usage was more prominent among Filipinos
aged at 30 to 59 years old, VisMin and rural residents, accountholders, females, and
SEC D.
Figure 10G. Internet Usage by Demographic Profile
82
Mobile phone ownership and internet use
Out of 92% of Filipinos who owned a mobile phone, 82% had internet access in 2021.
This translates to 76% (or 59 million) of total Filipino adults having both mobile
phone and internet access, higher than 49% in 2019.
Figure 10H. Mobile Phone Ownership and Internet Use on Financial Transactions
Sixty percent (60%) of those with mobile phone and internet conducted financial
transactions online such as fund transfers and payments, a considerable jump from
the 17% in 2019. Among mobile phone and internet users, 40% (or 23.4 million) were
unbanked in 2021. Of the 60% who had an account (equivalent to 35.3 million), a
majority (79%) made online financial transactions.
Mobile phone and internet users who performed online transactions were primarily
from class ABC, aged 30 to 39 years old, and NCR residents.
Figure 10I. Digital Financial Transactions by Demographic Profile
Base population – Among those who had mobile phones and uses the internet (76% of Filipino adults)
A higher percentage of class ABC adults at 71% used their mobile phones and
internet for online financial transactions in 2021 than class E adults at 55%. Likewise,
around 70% of Filipinos aged 30 to 39 years old and NCR residents transacted
83
financially using their mobile phones or internet, higher than their counterparts.
Meanwhile, there was minimal gender and locality gap observed.
The remaining 40% who were not using their mobile phones for financial
transactions cited the following reasons: lack of awareness, weak or lacking mobile
signal, lack of trust, and preference to transact at the branch of ATM.
FGD Insights
The significant increase in the use of

“Madali magbayad. Hindi ka na mobile phone and internet for
pupunta ng bayan para magbayad.” financial transactions was confirmed
during the FGD session. Convenience
- Batangas interviewee, was one of the reasons why Filipinos
On the use electronic use electronic device for financial
device for payments
transactions, specifically when doing
payment transactions.
Income generation activities such as

“May nabenta po ako na product.
receiving payment from customers or
Sabi niya, ‘Sir, may [e-wallet] po ba jobs which require digital transfers
kayo?’… [Kaya] dinownload ko mainly triggered the shift to cashless
yung [e-wallet app] … then sinend na transaction.
niya iyong payment sa akin.” 
-Dagupan interviewee,
On use of mobile payment
It is evident that technology is one of the major drivers of financial inclusion.

FSPs utilized technology by investing in platforms or systems that can create
products and services particularly in payments and credit or loans that are
suitable to the Filipinos, especially those who are underserved or unserved.
“[When] paying contribution [using “There is a high demand on digitization

online platforms, nagkakaroon ng] and technology driven projects ... in terms
credit footprint [ang mga customers]. of development of the payment industry.
[We] process [and use the said] data [to We really need to update continuously our
develop loan products suitable to the system for us to be updated and relevant
needs of the customers] like credit." to the requirements of our customers”
- FSP interviewee,
On how digital payments can boost financial
- FSP interviewee,
inclusion
On developments of digitalization
84
FGD Insights
From the perspective of FSPs, advancing financial inclusion using digital

financial services requires collaboration and concerted effort: (1) FSPs’ initiatives
to innovate products and services and digitize their processes in order to
achieve a smooth customer journey that is suitable for Filipinos; (2) IT
infrastructure, focus on reaching customers via different channels such as
electronic device and internet access; and (3) support from the government in
terms of financial literacy through programs, advocacies and policies ensuring
fair treatment to all customers.
“Kailangan din mag-adopt pero “To educate those … in the far-flung

kung wala naman silang kapasidad, areas [and] to get them understand …
wala namang WiFi sa barangay, wala what are the advantages [of
namang ganon na kasi mahal din ang digitalization] because … [they are]
still thinking of the traditional way
internet hindi nila kaya.”
[of using cash].”
- FSP interviewee, - FSP interviewee,
On challenges encountered by consumers on On support needed
digital adoption in pushing digital adoption
These were supported by interviews with non-users of digital financial services.

Moreover, transactions, regardless of value, were less likely conducted using
digital means due to security concerns.
“[Online accounts] can easily be hacked. “Kailangan pa [ng] WiFi … [at] data.
Ubos … agad [ang] iyong pera … kaya Kung may pupuntahan ka … dalhin mo
talagang paranoid ako … every time mag- nalang iyong pera o iyong ipon mo.”
o-open [ng online account].” -Dagupan interviewee,
On challenges of digital account
-Davao interviewee,
On challenges of digital account
85
11. Impact of the COVID-19 Pandemic40
With the onset of the COVID-19 pandemic,41 58% of adults indicated that their
present financial behavior changed compared with their behavior in the pre-
pandemic period. In 2021, 37% of adults started to save more for emergencies, 15%
borrowed more, while four percent (4%) acquired insurance. This shift in financial
behavior was more evident among those in the Mindanao and Visayas areas,
business owners, accountholders, rural locality, employed, and women.42 More
high-income households (class ABC) saved for emergencies and acquired insurance
while more low-income households (classes D and E) resorted to borrowing.
At least 10% Filipinos started or increased utilization of online banking/digital

payments. This was more evident in respondents from NCR and Mindanao, class
ABC, urban areas, aged 20 to 39 years old, workers, with household members
working abroad, and business owners.
Figure 11A. Impact of Pandemic on Financial Behavior
40
In 2021, questions on the impact of the COVID-19 pandemic and financial assistance from
the government were included.
41
The World Health Organization (WHO) declared COVID-19, an infectious disease due to the
coronavirus, as a pandemic on March 12, 2020. The COVID-19 shock has caused temporary
and permanent business closures, reduced capacity utilization, delayed investment
expenditures, reduced household earnings and consumption, and increased
unemployment. (BSP. 2021.
https://www.bsp.gov.ph/Media_And_Research/Publications/BSP_Unbound.pdf)
42
Among those who borrowed more, shares were almost equal for men and women.
86
FGD Insights
These behavioral changes were likewise observed during the FGDs.
“Nung pandemic lang talaga, nawalan “[Noong] time na wala pa akong

talaga [ng kita yung rental business] trabaho at hindi pa masyado nag-
kaya talagang nangutang. Sa lending oonline [business] si misis, nagka-utang
[company] kami agad lumapit kasi ako noon dahil nga siyempre isipin mo
maliit ang interes” kung saan ka kukuha, kung saan ka
lalapit”
- Batangas business owner,
On borrowing for business during the pandemic - Batangas respondent,
On loans during the pandemic
Six (6) out of ten (10) adults received financial support from the government during
the COVID-19 pandemic, with a higher share among those living in Mindanao and
NCR, belonging in classes D and E, rural areas, aged 30 years old and above, and
females. The primary assistance received was through the Social Amelioration
Program (SAP). Out of those who received SAP assistance, 59% had an account.
Figure 11B. Financial Assistance from the Government
87
Concluding Notes
When the COVID-19 pandemic hit and the lockdowns were triggered, many
businesses closed, employees were laid off and together with contractual workers
faced serious risks in their income. Those who had savings and other assets pre-
pandemic were lucky enough to have financial tools to support their daily expenses;
but those who were already struggling even before the health crisis had to rely on
government financial assistance or be resourceful to make ends meet.
The result of the 2021 FIS showed a general increase in financial activities of
Filipinos. Uptake of transaction account, borrowing, and insurance, all saw
significant growth specifically in Mindanao. Among other financial transactions, the
pandemic prompted the adoption of a transaction account to send and receive
money from relatives; pay bills; and receive financial support from the government,
online payments from customers and employers, as well as claims from loans and
benefits. Filipinos also desired having savings for emergencies and investments to
secure their future, but these took a backseat to their priorities as they try to manage
their cash flows until their financial conditions got better.
Guided by the results and insights from the 2021 FIS, the following are some of the
key steps that can be pursued to promote greater financial inclusion and resilience:
Target strategic sectors to boost account penetration level. Reducing the

disparities in financial inclusion, particularly for the high- and low-income
groups and concentrating efforts on the following strategic sectors will help in
onboarding more Filipinos to the formal financial system:
• Wage and salary recipients - Four (4) out of ten (10) working adults are still
unbanked, which is equivalent to over 18 million adults. They can be
onboarded by enabling them to receive their wages/salaries through an
account.
• Beneficiaries of government financial assistance - In 2021, only seven (7)

in ten (10) received their financial assistance through an account. Since
receipt of cash assistance is one of the primary use cases of an account,
unbanked beneficiaries could be another priority segment for
onboarding.
• Young adults - Only 27% of young adults aged 15 to 19 have an account

based on the 2021 FIS. School banking programs may help in enabling
students to open youth savings accounts.
• Other disadvantaged groups - There is also a sizeable number of

unbanked adults among farmers, housewives, and senior citizens (e.g.,
pensioners), and workers for private households (e.g., kasambahays,
drivers).
88
Increase awareness of inclusive financial products and services to achieve
greater financial uptake and inclusion. The main barriers to account ownership
may be addressed by increasing awareness of several products and services
offered to the public as follows:
• Basic Deposit Accounts (BDAs) - As a no-frills bank account, the BDA alters
the perception that a large sum of money and complicated documents
are required to open and maintain a bank account. Increasing the
awareness among half (54%) of adult population who are still unaware of
BDA will enable more Filipinos to enjoy the benefits of owning a bank
account.
• E-Money Accounts - In 2021, the share of accountholders who used their

accounts for payment-related transactions surpassed the share of
accountholders who used their account to save. E-money account and its
compelling use cases (e.g., receipt of social benefits, wages and salaries,
payments for transportation and merchants, etc.) will dissuade the
perceived lack of need for an account. Despite being the most common
form of account owned in 2021, e-money was ranked fifth (5th) in terms of
familiarity to respondents. As more Filipinos discover e-money accounts,
a wider audience will be able to use their accounts for various
transactions.
• Cash agents - The use of agents enables financial institutions to promote

operational efficiency and serve a wider client base, particularly in low-
income and rural areas, at a lower cost than setting up a full branch and
deploying ATMs. Bringing these institutions closer to the community
provides greater convenience to customers and alleviates concern on
costs associated with distance (i.e., time, effort, and transportation).
The BSP recognizes that awareness is just the first step to truly onboard more
Filipinos onto the financial system. Next step is to ensure active usage of
these products and services and increase access to resiliency-building
financial tools like insurance, so that progress will be sustained.
Continue leveraging on the Philippine Identification System (PhilSys) 43 to

address onboarding challenges and foster digital innovations in financial
services. With its universal coverage, electronic KYC and online authentication
facilities, PhilSys, the country’s digital ID system, will facilitate seamless, cost-
efficient client onboarding benefitting both the unbanked clients and the FSPs.
PhilSys not only addresses account opening pain points, especially for the low-
income market, but also serves as a platform for more digital finance
innovations.
Intensify programs that promote usage of digital financial service (DFS). Prior
to the pandemic, many Filipinos remit money and paid transactions in cash or
via access points. The health protocols placed for the public’s safety during the
pandemic restricted regular movement, compelling both individuals and
43
Six (6) out of ten (10) respondents registered for the PhilSys.
89
businesses to learn and adopt digital transactions. However, the perennial
problems of access to and quality of internet connection, as well as digital
literacy hinder the adoption of DFS particularly to those in Visayas and North
and Central Luzon, class DE, and above 50 years old. In support of inclusive
economic recovery and to help properly manage and secure the financial
condition of Filipinos, the BSP and other partner institutions should intensify its
efforts in the areas of financial and digital literacy, affordable and reliable
connectivity, and digital security.
Strengthen mechanisms that support financial resilience especially in the

vulnerable sector. Poor Filipino families and MSMEs have disproportionately
been affected by the pandemic. With the mismatch of unpredictable money
inflows with the fixed money outflows (i.e., critical needs and operating costs),
many of them resorted to borrowing. Majority of adults from low-income
families turned to informal sources of loans due to (1) accessibility through their
family and friend; (2) simplicity since no documentary requirements are needed;
(3) convenience of payment terms since both parties can easily agree to the
mode and frequency of payment, and (4) affordability since loans from friends
and relatives have little to no interest. These present a marketable prospect for
formal financing institutions. Continued support for formal financing, which
serves as a viable source of funds particularly from microfinancing institutions,
will help rebuild Filipinos’ livelihoods through and beyond the pandemic.
Availability of digital payments can also boost financial inclusion by creating a
rich digital profile that can be harnessed to access other financial services,
particularly credit.
Business owners, on the other hand, needed to sustain their business taking into
consideration their employees who rely on their salaries. To help mitigate the
adverse impact of the pandemic and support the MSMEs, the government could
implement regulatory relief and put in place various measures to boost lending
to MSMEs. On another note, MSMEs may still be reluctant to take out a loan for
their business due to it being perceived as a gamble, instead of viewing it as a
means to expand one’s business. Capacity building activities in the areas of
business training and mentoring, as well as access to business information can
help address misconceptions about formal financing. Moreover, MSMEs
perceive that borrowing from formal institutions, particularly from banks, is
difficult due to requirements and processing time. In this regard, alternative
credit assessment methods, such as using alternative data for credit scoring,
employing moveable assets or inventory as collateral, and financing value chains
and supply chains, among other initiatives, can be pursued.
With the launch of the National Strategy for Financial Inclusion (NSFI) 2022-2028,44
the BSP continues to work not only with government agencies but also engages the
support of the private sector and development partners to achieve the vision of
driving financial inclusion toward broad-based growth and financial resilience.
44
May be accessed through NSFI-2022-2028.pdf (bsp.gov.ph).
90
Financial Inclusion Survey Snapshot
Respondents: Adults - individuals aged 15+
FORMAL ACCOUNT 2019 2021 ACCESS POINTS 2019 2021

Percentage of adults with formal account 29% 56% Percentage of adults who are aware of touch points 98% 93%
By type of account Bank 77% 80%
Bank account 12% 23% ATM 90% 75%
E-money account 8% 36% Cash agent 54% 55%
Microfinance institution account 12% 9% E-money agent 36% 61%
Cooperative account 2% 5% Percentage of adults who find the touch points accessible
95% 97%
Non-stock savings and loan association account 0.1% 0.3% (base: among those aware)
By individual characteristics Bank 18% 30%
ABC 43% 80% ATM 51% 48%
D 28% 54% Cash agent 1% 3%
E 27% 44% E-money agent 6% 42%
Male 24% 54%
Female 34% 57% CONSUMER EMPOWERMENT
Young adults (15-19) 7% 27% FINANCIAL LITERACY
Older adults (>60) 32% 47% Percentage of adults who correctly answered all 6 financial
--- 2%
Rural 30% 56% literacy questions
Urban 27% 55% Percentage of adults who correctly answered inflation and
8% 4%
Working adults 39% 61% interest rate questions
Business owners 43% 65% Percentage of adults who correctly answered questions on:
Percentage of accountholders who use their account for Inflation 55% 42%
47% 78%
payments Simple interest 32% 32%
Reason for not owning a formal account Compound interest 33% 30%
(base: adults who did not own an account) Division --- 91%
Not enough money 45% 45% Diversification of Portfolio --- 61%
No documentary requirements 26% 40% Investment Risk --- 58%
Don't know the details about this or how it works 17% 22% Attendance to Financial Literacy Session --- 7%
Not needed 27% 22% FINANCIAL CAPABILITY
BDA Awareness 40% 46% Percentage of adults with budget --- 46%
Unbanked but with mobile phone and internet Percentage of adults who plans ahead financially --- 80%
47% 68%
(base: adults without an account) Percentage of adults with long-term financial goals --- 66%
CONSUMER PROTECTION
SAVINGS Percentage of adults who lost money due to scam --- 11%
Percentage of adults with savings 53% 37% Percentage of adults who encountered issues with financial
--- 17%
Percentage of formal savers service providers (FSP)
(base: adults with savings) Percentage of those who did not report to concerned FSP
Bank 21% 31% issues/scams encountered --- 82%
Microfinance NGO 22% 13% (base: adults who encountered issues/scams)
NSSLA --- 1% Percentage of those who did not escalate the issues/scams to
Cooperative --- 14% the regulator
(base: adults who reported to concerned FSP issues/scams --- 21%
Percentage of informal savers
(base: adults with savings) encountered but not resolved)
At home 51% 52%
Group savings 6% 6% FINANCIAL NEEDS 2021
Used
CREDIT Coping Mechanism Used for: existing Borrowed
Percentage of adults with outstanding loans 33% 45% assets
Percentage of adults who borrowed from formal sources Meeting Goals
56% 56%
(base: adults with outstanding loans) Purchase of expensive item 28% 27%
MF NGO 31% 23% Put up or expand business 28% 41%
Government Institutions 11% 12% Resiliency
Cooperatives 3% 8% Experienced sickness, death or loss of job in the family 28% 45%
Lending/Financing Institutions 7% 7% Affected by natural calamities 26% 43%
Bank 3% 4% Liquidity
Pawnshops 1% 3% Pay for regular spending needs 24% 41%
Percentage of adults who borrowed from informal sources (base: adults who experienced the financial need)
55% 57%
(base: adults with outstanding loans)
Family, friends, relatives 44% 47% FINANCIAL HEALTH 2019 2021
Informal loan providers (5-6) 10% 14% Every day
Finances control respondent's life --- 46%
INSURANCE Cannot fully meet cost of living --- 41%
Percentage of adults with insurance (excluding PhilHealth) 23% 17% Cannot fully meet current financial obligations --- 14%
Percentage of adults with insurance (including PhilHealth) --- 48% Rainy day
Current finances or savings would not last --- 46%
INVESTMENT Giving an occasional gift strains monthly finances --- 28%
Percentage of adults with investment (including pension) 25% 36% Cannot handle emergency expenses --- 23%
Percentage of adults with investment (excluding pension) 15% 10% One day
Types of investments owned (base: among investors) Current financial situation will keep from acquiring wants/dreams
--- 38%
Pension 90% 96% Financial future not secured --- 13%
Pag-IBIG (e.g., MP2) 52% 23% No clear financial goals --- 11%
Time Deposit 2% 2% Not on track to meet financial goals --- 11%
Stocks, Unit Investment Trust Fund (UITF), Mutual Fund 4% 1%
(Note: Percentage of adults who think that the statements are applicable to them)
Personal Equity and Retirement Account (PERA) 0.1% 1%
REMITTANCE DIGITAL ACCESS

Percentage of adults who sent money (domestic and Electronic device ownership 70% 93%
37% 32%
international) Mobile phone 69% 92%
Over the counter (base: among senders) 98% 88% Smartphone 51% 81%
Fund transfer (base: among senders) 1% 28% Basic phone 18% 16%
Percentage of adults who received money (domestic and Internet ownership 53% 77%
48% 45%
international) Percentage of adults with mobile phone and internet 49% 76%
Over the counter (base: among receivers) 94% 83% Percentage of mobile phone and internet users who had
Fund transfer (base: among receivers) 5% 29% online financial transaction 17% 60%
(base: adults with mobile phone and internet)
PAYMENT Percentage of mobile phone and internet users who are
Percentage of adults who made payments 85% 84% unbanked 68% 40%
Cash (base: among adults who made payments) 99% 93% (base: adults with mobile phone and internet)
Through Online banking/app (base: among adults who Reasons for not using internet for online financial transaction
1% 9%
made payments) (base: adults who did not use internet for online financial transaction)
Percentage of adults who received payments 43% 65% Lack of Awareness 48% 39%
Cash (base: among adults who received payments) 71% 75% Weak or lacking mobile signal 22% 36%
Through an account (base: among adults who received Lack of trust 39% 23%
16% 23%
payments) Preference to transact at the branch of ATM 14% 18%
FINANCIAL BEHAVIOR CHANGES DUE TO COVID-19

Save more for emergencies --- 37%
91
Began or increase use of online banking and digital payments --- 17%
Borrowed more --- 15%
Acquire insurance --- 4%
92

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About the Cover

The cover photo shows a customer of a bakeshop making a QR Ph payment.

Photo source: BSP Corporate Affairs Office (CORAO)

Multi-stage random sampling methodology was employed in selecting the

The survey instrument was an enhancement of the questionnaire used in 2019. It

No. Area Main Topic

To probe the reception of digital financial transactions (i.e., payments), four

Population (2021 projection) a/ 110 million

1. Account Ownership ..................................................................................................................................... 13

4. Insurance and Investment .................................................................................................................... 40

7. Financial Access Points ........................................................................................................................... 60

8. Consumer Empowerment ..................................................................................................................... 62

9. Financial Needs and Health .................................................................................................................. 72

10. Digital Access............................................................................................................................................... 79

11. Impact of the COVID-19 Pandemic .................................................................................................. 86

Concluding Notes .............................................................................................................................................88

Uptake of Financial Services

Formal Account 29% 56%

Formal Credit 19% 25%

Insurance7 23% 17%

Investment8 25% 36%

*Respondents can report more than one response.

Socio-economic class, educational level, age, and geography drove account

A significant number of accountholders (78%) used their accounts for payment-

*Respondents can report more than one response.

Base population – Among accountholders (56% of Filipino adults)

Uptake of investments improved. Financial investors among adults rose to 36% in

*Respondents can report more than one response.

*Respondents can report more than one response.

Mechanisms Used to Meet Financial Needs

*Respondents can report more than one response.

While remittances remained largely over-the-counter (OTC) transactions, use of

*Respondents can report more than one response.

*Respondents can report more than one response.

Payments Made and Received (2019 vs. 2021)

Use of accounts for receiving payments (or account-based payment) remained

Mode of Receiving Payments

*Respondents can report more than one response.

Correct Answers on Financial Literacy Questions

Gender gap, in indicators where it exists, generally remained in favor of women.

Account ownership significantly increased to 56% Figure 1A. Account Ownership

Socio-economic class, educational level, age, and geography drove account

Figure 1C-1. Account Ownership by Demographic Profile

Other income factors such as having a job, being a remittance-receiving household,

Figure 1C-2. Account Ownership by Demographic Profile

Table 1A. Account Ownership by Selected Demographic Profile

The succeeding discussion describes the demographic segmentation of account

• Uptake of accounts in class ABC1 at 91% continued to outpace all other

Table 1B. Account Ownership by Type of Account and Socio-economic Class

Disbursement of salaries and wages, claims or benefits, and loan proceeds

“Ako [ay] may [account sa] bangko kasi…

Table 1C. Account Ownership by Educational Attainment

• In 2021, account penetration was highest in Mindanao at 67%, overtaking

ACCOUNT NCR NCL SL VIS MIN URBAN RURAL

Table 1E. Account Ownership by Age and Type of Account

Table 1F. Account Ownership by Marital Status and Type of Account

• Working adults had a higher share of account ownership at 61% compared

Table 1G. Account Ownership by Employment Status and Type of Account