Questions To Ask Before Choosing a Digital Bank

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.

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. 

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.