We are sure you’ve read that there have been new digital banks that have stepped into the local market. There’s no denying that digital has penetrated one of the traditional industries, BANKING! If we must be savvy with our social media presence, we must be more so when we utilize digital platforms to perform financial or banking services. Before jumping straight in and opening an account, here are a few guide questions that will help you choose a trusted digital bank.
First: Is your digital bank regulated by the BSP?
The Bangko Sentral ng Pilipinas (BSP) is the Philippines’ monetary authority. One of BSP’s key responsibilities include maintaining financial stability in the country through systemic risk management and financial supervision. As such, BSP supervises the operation of banks in the country to make sure that these institutions are compliant with banking laws to promote a sound and healthy banking system.
Financial institutions regulated by the BSP pass through regular, rigorous checks and audit to make sure that their operation is up to code in order to protect the bank, its depositors, and the economy. These institutions must follow strict compliance with banking laws in order to remain affiliated with BSP.
It’s easy to check if a bank is regulated by BSP. You may look for the BSP issuance line on the bank’s official website usually located at the footer. The issuance may also be found on official communications issued by the bank on their social media pages or on different collaterals in their branches.
Second: Are deposits with the digital bank insured by the PDIC?
The Philippine Deposit Insurance Corporation (PDIC) is a government instrumentality created in 1963 as the country’s deposit insurance fund. Apart from providing insurance to depositors, it works closely with BSP in maintaining the stability of the banking system by ensuring that all affiliated financial institutions adhere to banking and deposit insurance rules. PDIC may also extend financial assistance to eligible distressed banks.
The Philippine Deposit Insurance Corporation gives protection to depositors by insuring their savings of up to PHP 500,000.00 per depositor. Member banks pay PDIC annual premiums in order to provide coverage to their depositors. The deposit insurance acts as a safety net to guarantee that depositors get their money back in the event that the bank is ordered to be closed by the Monetary Board of BSP.
To check whether a bank is a member of the PDIC, you may go to their official website and look for the PDIC issuance line usually located at the footer. Typically, the issuance comes right after BSP’s and can also be found in other official communications issued by the bank.
Third: Does your digital bank provide secure in-app or mobile transactions? It should.
Safety should be a number one priority when it comes to choosing your digital bank. Make sure that your bank’s website is secure by checking the URL on the address bar of your internet browser. Look for the locked padlock icon or check if the website URL starts with “https.”
When using mobile banking apps, make sure that the app offers multi-factor authentication and enable these functions to guarantee that nobody can access your account easily. Secure digital banking apps should also offer other account authentication options like OTP and MPIN to further strengthen the security of your account. Remember, never share your account credentials, PIN, MPIN, or OTP with anyone. Staying vigilant adds another layer of security to your bank account.
This coming June 16 – 22, 2021, the PDIC will be celebrating its 19th Depositor Protection and Awareness Week (DPAW) with the theme, “Maniguro, Mag-impok, Mag-deposito sa Bangko.” Make sure to watch out for any updates on DPAW on their website and social media pages.
CIMB Bank is regulated by the Bangko Sentral ng Pilipinas and is a proud member of the Philippine Deposit Insurance Corporation. Through the bank’s affiliation with these institutions, you can be sure that your money is in safe and secure hands.
Apart from the assurance on the safety of your money, you can enjoy the best-in-market interest rate with CIMB Bank! You may open an account through the CIMB Bank PH App with just a few taps on your phone, manage your account 24/7, and enjoy zero transaction fees. You can check out our products and promos on our website.