The banking landscape is being transformed as non-traditional financial institutions rise to meet the evolving needs of consumers living in the digital age. Unlike their brick-and-mortar predecessors, digital banks operate exclusively online and offer streamlined, user-friendly services that cater to a generation that prefers quick, accessible financial management at their fingertips. This shift towards digital solutions represents a fundamental change in how modern financial services are conceived and delivered.
In the Philippines, digital banking is reshaping the financial sector at a particularly rapid pace. The country has historically been home to a large unbanked population, with 256 or 15.7% of cities and municipalities in the country still having no banking presence in the third quarter of 2023, according to the Bangko Sentral ng Pilipinas (BSP). This figure represents around 53% of all adults in the Philippines. Over the last few years, however, digital banks like Maya have stepped up to fill this gap and make financial services more accessible to Filipinos from all walks of life. At present, Maya is recognized as the best digital bank in the Philippines, having recorded more than PHP 24.8 billion in total deposits as of December 2023.
In this article, we’ll explore the inner workings of digital banks, the distinct advantages they offer over traditional banks, and why choosing Maya could be a smart financial move for those looking to maximize their savings. Let's uncover the innovative features and customer-centric services that make working with a digital bank a particularly appealing option in the current financial landscape.
How Digital Banks Work
Digital banks mark a departure from traditional banking by operating entirely online, without any physical branches. This model is foundational to their ability to offer fast, efficient services. At the core of digital banking is a technology platform that integrates advanced software and security systems to manage accounts, process transactions, and protect user data. Customers can open accounts, make deposits, transfer funds, and manage their finances through a website or digital banking app, with all activities validated in real time to ensure accuracy and security.
The technology that powers digital banks is robust and versatile. It may incorporate elements like artificial intelligence to personalize customer interactions and blockchain for enhanced security. For example, AI can analyze spending patterns to offer customized savings advice or alert customers to potential fraud, while blockchain technology secures transactions against cyber threats. This tech-centric approach improves the functionality and security of banking processes on the back end. It also enhances the overall user experience by making banking a more intuitive process on the whole.
The Advantages of Saving with a Digital Bank
The wide array of benefits digital banks offer makes them increasingly attractive to today’s savers. These advantages stem from their innovative use of technology and customer-first approaches. Here’s a breakdown of why saving with a digital bank like Maya could be beneficial:
- Higher Interest Rates: Digital banks often offer higher interest rates on savings accounts compared to traditional banks. This is largely due to lower overhead costs, as they don’t have to maintain physical branches. The banks subsequently pass down the savings from these reduced costs on to customers in the form of better returns on their deposits.
- Lower Fees: Without the extensive network of physical branches and the associated costs, digital banks can afford to minimize or completely waive common banking fees. These might include monthly maintenance fees, transaction fees, and even ATM withdrawal fees at various networks.
- Convenience and Accessibility: Digital banks allow you to manage your finances anytime and anywhere, as long as you have an internet connection. You can easily make deposits, set up automatic savings plans, and track your spending through intuitive apps and online tools.
- Enhanced Security: Leveraging the latest in cybersecurity technology, digital banks ensure that your financial data and money are protected at all times. Features like two-factor authentication, biometric logins, and real-time fraud monitoring provide an added layer of security to safeguard your money and information from cyber threats.
- Innovative Features: Many digital banks offer innovative products and services that are not typically available with traditional banks. These can include budgeting and financial goals tools, real-time spending notifications, and the option to categorize transactions for better financial management.
Why Save with Maya?
Six digital banks currently have BSP approval to operate in the Philippines. Of these, Maya stands out as the digital bank PH depositors trust most due to the unparalleled security, efficiency, and convenience that characterize the banking experience it offers. For instance, if you’re a new customer, all you need is one valid ID to open an account, and no maintaining balance is necessary to keep your account open. Maya Bank is also fully regulated by the Banko Sentral ng Pilipinas, and the Philippine Deposit Insurance Corporation insures customer deposits for a maximum of PHP 500,000 per depositor. As such, you can rest assured that we operate to the highest standard of security at all times.
If you’re specifically looking at Maya as a potential home for your savings, then you’ll definitely find yourself spoilt for choice when it comes to cutting-edge solutions. Consider one of the following products to help you grow your wealth and meet your financial goals:
- Maya Savings: Maya Savings perfectly balances the safety of a traditional bank account with the convenience of an e-wallet app. It’s entirely possible to open an account and fund this account straight from the Maya app. Plus, only Maya Savings lets you boost the interest rate on your savings by doing your everyday payments through the app. By completing tasks like paying bills, buying airtime load, or paying for purchases through Maya Wallet or Maya Easy Credit, you can raise the interest rate on your savings from a base interest of 3.5% p.a. all the way up to 15% interest p.a. daily (starting July 1).
- Maya Personal Goals: Whether you’re saving up for your dream vacation, preparing to upgrade your PC, or building your emergency fund, Maya Personal Goals is the solution you need to stay on track with your financial objectives. All goals earn 4% interest p.a. per month, guaranteed. You can also easily deposit toward your Personal Goals directly from your Maya Savings account, Maya Wallet, and even from other banks and e-wallets. When the time comes and you need the money, it will also be easily accessible without any fees.
- Maya Time Deposit Plus: If you’re looking to earn a substantial investment with minimal risk, or if you’re saving toward a medium of long-term goal, then Maya Time Deposit Plus is for you. Maya allows you to earn interest on up to five Time Deposit Plus Accounts at once, with ceilings of up to PHP 1 million each. With minimal cancellation fees, regular interest crediting on the first of each month, and the potential to earn boosted interest, you simply can’t ask for a better time deposit product.
Embracing digital banking with Maya opens the doors to more efficient money management. It’s also a step towards future-proofing your finances in an increasingly digital world. By choosing a platform that aligns with the needs of modern consumers like you, you’re ultimately setting the foundation for a brighter financial future for yourself.
