Republic of the Philippines

Tarlac State University

College of Business and Accountancy
Financial Management Department
Tarlac City, Tarlac 2300

WRITTEN REPORT IN
FINMAN 3

How to Choose a Bank

Submitted by: Group 5

FM 2-1

Group Leader:

Fernando, Fatima Grace M.

Group Members:

Bustos, Aljim Marie L.

Garcia, Lanz Raven C.

Legaspi, Amela M.

Lucaser, Berlyn V.

Miranda, Paul Hendrix O.

Rombaoa, Roshel M.

Ueno, Nao R.

Submitted to:

Ma’am Angela Manila

Table of Contents

 At a Glance: The Top Banks in the Philippines

 Top 10 Banks in the Philippines According to Bangko Sentral Ng Pilipinas

 What Type of Bank Do You Really Need?

 How We Chose the Best Banks

 Minimal bank fees

 Low maintaining balance

 Few or no limitations on the number or method of transactions

 Accessible location of the bank and its ATMs

 Secure online and mobile banking

 Verifiable deposit insurance

 Competitive interest rate/s

 Reliable and efficient customer service

 Best for Savings: Bank of the Philippine Islands (BPI)

 Best for High-Yield Savings (Traditional): Citibank

 Best for Checking Account: Philippine National Bank (PNB)

 Best Rural Bank: BDO Network Bank (BDO NB)

 Best for Time Deposit (Traditional): Security Bank

 Best Digital Bank for High-Yield Savings & Time Deposit: Tonik

 Best for Paypal: UnionBank

 Best for Expats: Citibank

 Best for OFWs: BDO

 Best for Students: Bank of the Philippine Islands (BPI)

 Best in Online Banking: RCBC

 References
 How to Choose a Bank: An Ultimate Guide to the Top Banks in the
Philippines
(Bustos, Aljim Marie L.-Live Reporting

Introduction
When every bank is promoting itself as the best bank in the Philippines, you can’t help but wonder
which one actually delivers.

A bank that offers a low minimum deposit and doesn’t charge you every time you touch your money definitely
sounds like a winner.

However, to get the best deal you must look at the bigger picture.

Whether you’re a student, entrepreneur, expat, OFW, or anyone who wants to save, this guide gives you a leg
up in choosing the best bank in the Philippines.

At a Glance: The Top Banks in the Philippines

Category Name of Bank
Best for Savings Bank of the Philippine Islands (BPI)
Best for High-Yields Savings (Traditional) Citibank
Best for Checking Account Philippine National Bank (PNB)
Best Rural Bank BDO Network Bank (BDO NB)
Best for Time Deposit (Traditional) Security Bank
Best Digital Bank for High-Yield Savings & Time
Tonik
Deposit
Best for Paypal UnionBank of the Philippines
Best of Expats Citibank
Best for OFWs BDO
Best for Students Bank of the Philippine Islands (BPI)
Best in Online Banking RCBC

Top 10 Banks in the Philippines According to Bangko Sentral Ng Pilipinas

(Bustos, Aljim Marie L.- Live Reporting)
The Central Bank of the Philippines or the Bangko Sentral ng Pilipinas (BSP) is the governing body that has
been authorized by law, through the provisions of the General Banking Act of 20001, to regulate all banks in the
Philippines. These include all universal or commercial banks that offer the widest range of banking services.
As of December 31, 2019, the following are the top 10 universal and commercial banks that are ranked by the
BSP according to their total assets2:

Name of Bank Total Assets (in PHP)

BDO UNIBANK INC. 3,409,212.89
LAND BANK OF THE PHILIPPINES 2,564,545.78
METROPOLITAN BANK & TCO 2,106,282.56
BANK OF THE PHIL ISLANDS 1,945,827.50
PHIL NATIONAL BANK 1,148,157.42
DEVELOPMENT BANK OF THE PHIL 1,117,829.64
CHINA BANKING CORP 970,318.36
RIZAL COMM’L BANKING CORP 868,455.60
SECURITY BANK CORP 699,639.98
UNION BANK OF THE PHILS 679,329.56

What Type of Bank Do You Really Need?

 According to the 2019 Financial Inclusion Survey by the Bangko Sentral ng Pilipinas (BSP)3, 28.6% or about
20.6 million Filipino adults have formal accounts. Of these formal account holders, only 12.2% said that their
money is held by banks, a small gain from 2017’s 11.5%.

But saving money isn’t the only reason for opening a bank account. Depending on your needs, there are 5 types
of bank accounts you can choose from:

1. Savings Account – is where you put your money if you want to build your emergency fund or save up
for something important like a car, wedding, or vacation. It requires a low initial deposit so students or
anyone with an unstable income can open an account. The drawback is its annual interest rate of less
than 1% and penalty fees that you’ll incur if your balance falls below the required maintaining balance;

2. Checking Account – is a type of deposit account that you mainly use for payments. It requires a higher
initial deposit and maintaining balance than a savings account. A checking account allows you to issue
checks which aren’t possible if you’re a savings account holder. Use this account if you have loans that
require repayments through post-dated checks or for regular transactions such as payments for bills,
tuition fees, rent, and business expenses;

3. Time Deposit Account – pays higher interest than a regular savings account. The money you put here is
kept for a fixed period of one month to seven years, during which the bank lends and invests the money
to earn you a higher interest of up to 3.50%. Only choose this account if you have money that you won’t
be touching anytime soon. While it’s possible to withdraw the money prematurely, it comes with a huge
penalty fee that easily beats the money you should have earned;
 4. Dollar/Foreign Currency Account – ideal for those who regularly transact using foreign currencies
including OFWs and their families, online business owners, and regular travelers. Money in dollar
accounts also earns interest in dollars. You can also opt to withdraw your money in pesos with a better
exchange rate than most money changers. Aside from US dollars, you can also open an account for other
foreign currencies such as the British pound, euro, Chinese yuan, Hong Kong dollar, Japanese yen, and
many more;

5. Joint Account – is preferred by couples, associations, or business partners who want to keep their
income under one account. A joint account can be a savings, checking, or time deposit account. The
account holders may choose either a joint “AND” account or a joint “OR” account. The former
requires both signatories for any withdrawal to take place while the latter allows either one of the
account holders to withdraw without the need for the other’s signature.

Once you’ve identified your own criteria, it’s time to select from one of these general categories of banks:

 Commercial bank – offers the widest range of services for both businesses and individual depositors.
With these mainstream banks, you can open a savings account, invest money, or secure loans.

 Thrift/Savings bank – focused on helping individuals and families to secure their financial futures via
cash deposits. The bank invests the money they collect to help grow it and give the depositors a higher
earning potential.

 Rural bank – also known as a cooperative bank, this institution finances agricultural projects and offers
high-interest yields to help boost the rural economy.

 Digital bank – unlike traditional online banking, you don’t have to visit a branch just to open an
account; you can just open one through your smartphone. Digital bank apps allow you to do most
banking transactions on your smartphone such as depositing a check. However, there’s currently no easy
way to deposit cash on hand.

 Credit unions or member-owned financial cooperatives – a type of small-scale bank controlled by its
members who are motivated to help each other financially.

 Non-banks that may not own a full banking license but offer bank-related services.

How We Chose the Best Banks

(Fernando, Fatima Grace M.-Live Reporting)
No bank is perfect but to choose the best bank in the Philippines, we’ve put a lot of weight on the following
factors/criteria:

1. Minimal bank fees

Banks aren’t the best place to make your money work hard for you; there are a lot of investment vehicles that
can do better. However, putting your hard-earned money in a bank account is better than storing them under
your bed. For one, banks pay you annual interest for just letting them store your money.
2. Low maintaining balance

A lot of Filipinos store their money in banks temporarily and often withdraw them as the need arises.
Sometimes, you may accidentally withdraw money that exceeds the minimum balance requirement. When this
happens, banks may not only charge you with a penalty fee but also deactivate your account for failing to keep
the maintaining balance

3. Few or no limitations on the number or method of transactions

Banks may put a limit on the amount of money you can withdraw or the number of transactions you can do per
day.

4. Accessible location of the bank and its ATMs

While almost all banks now offer robust online banking services, nothing beats a bank that is close to your
location and where you can do an over-the-counter transaction at a moment’s notice.

5. Secure online and mobile banking

Since you won’t always be available to physically go to the bank to deposit or withdraw cash, priority should be
given to seamless online/mobile banking.

Most banks already have this feature but they’re not created equal. A bank that successfully embraces
technology enables you to do the following:

 Transfer money to any account online without going to the physical branch for authorization;

 Deposit, withdraw, or track money in your account through the bank website or smartphone app;

 Enroll autopay for bills payment;

 Secure an appointment in advance to avoid long queues upon arriving at the branch;

 Receive email or SMS alerts every time you withdraw from an ATM or make an online transaction;

Other nice online banking features to consider include automated savings plans, budgeting tools, and stringent
security measures to protect your account.

6. Verifiable deposit insurance

A deposit insurance guarantees that you get back your insured deposits in case the bank fails and closes
down.In the Philippines, all deposit accounts are insured with the Philippine Deposit Insurance
Corporation for up to PHP 500,000 per depositor per bank.

7. Competitive interest rate/s

Interest is what the bank pays you for trusting them to keep your money. It should be the least of your priority if
you’re planning to only save a few thousand in your savings account. A competitive interest rate, or one that
can keep up with the inflation, will only be of value to you if you have millions in cash deposits. If this is the
case, look for a bank that offers all the features already mentioned plus a high-interest savings account.

 Reliable and efficient customer service

Banks with multiple customer service channels speak volumes about their commitment to pleasing their clients.

Best for Savings: Bank of the Philippine Islands (BPI)

To find out the best bank in the Philippines for savings, we had to zero in on three of the most important
criteria: bank fees, interest rate, and customer service. We also considered the stability of the bank and its
overall performance over the years.

Based on these factors, our choices dwindled down to two–BDO and BPI.

Both are two of the largest commercial banks in the country as of 2021 with BDO’s total assets amounting to
3,409,212.89 and BPI’s at 1,945,827.50.

Banks of this magnitude have a wide range of products and services as well as numerous awards under their
belts. But none of these matters if they fail to serve individual clients well.

As with any popular bank serving millions of customers, both may show occasional issues of inefficiency.

Long queues at their branches can look like a line to a blockbuster movie, especially during peak hours. Their
customer hotlines, meanwhile, are plagued with inconsistency in terms of how they resolve customer
complaints.

Despite all the shared flaws, we still consider the Bank of the Philippine Islands (BPI) as the best bank to
open a savings account. Founded in 1851 and known as the oldest bank in the country as well as Southeast
Asia, BPI currently has over 800 branches and 3,000 ATMs and cash deposit machines nationwide.

Although BPI has fewer branches than BDO, the former enables its clients to book an appointment online,
enabling them to bypass the long queues at the physical branch.

Even without using the convenience of online appointments, you can still visit the branch, get your queue
number, and comfortably sit in a chair while waiting for your turn to make a transaction.

BDO, by contrast, provides neither queue numbers nor chairs. Transactions are also slower since BDO doesn’t
have an automatic queuing system like BPI’s that would have enabled them to pull up the client’s account in
advance.

Fortunately, both banks now have cash deposit machines in every branch that allow you to conveniently deposit
money without lining up to talk to a teller. For anyone planning to open a savings account to regularly deposit
money, both BDO and BPI are great choices by virtue of their cash deposit machines alone.

Now let’s get down to the nitty-gritty: While BDO has more branches nationwide (with those located inside
SM malls open even on weekends), its unreasonable fees are a major turn-off.

There is a processing fee for literally every transaction you make with BDO.

Transferring from a foreign bank? You’ll get charged at least $10 regardless of the amount you transfer.
Withdrawing money over the counter? Expect a withdrawal fee. Receiving money from other banks? Of course,
there’s a fee.
But here comes the worst part: BDO seems to treat its branches separately so when you deposit or withdraw
money in a branch other than the branch where you opened your account (i.e., account holding branch), you’ll
be slapped with fees for the said transaction.

BPI, on the other hand, has significantly fewer fees on everything.

Over-the-counter cash deposits and withdrawals are free if you do the transaction in the BPI branch where you
opened your account or in another branch, provided that it’s located in the same region as your branch of
account. Cash deposits and withdrawals made in a different region (e.g., NCR to Region I, etc.) come with a
service fee of PHP 50 and PHP 100 per transaction, respectively. For an updated list of BPI bank service
fees, click here.

They also have a Transfer to Anyone feature if you want to securely transfer money online to unenrolled BPI
accounts. Moreover, it’s now easier to enroll a BPI account through the BPI app.

As for ATM fees, both banks don’t charge anything so long as you use their own ATMs and not those of
competing banks. The comparison table below summarizes the ATM fees of both BDO and BPI as of December
2019.

In terms of interest rates, BDO offers as much as 0.750% for its Optimum Savings Account holders. The
highest that BPI can offer is only 0.375% for those with a Maxi-Saver Savings Account.

However, as mentioned in the previous section, interest rates aren’t the best way to gauge the performance of a
savings bank. If anything, even the highest interest rate can only give you coffee money every year unless you
have millions in cash to put in the bank.
 Best for High-Yield Savings (Traditional): Citibank
(Garcia, Lanz Raven C.- Live Reporting)
When you’re keeping millions in your savings account, it’s only appropriate to expect higher returns.
Fortunately, there are banks that offer high-earning savings accounts specifically for people like you.

Interest rates from traditional banks have been dropping since 2020. Fortunately, Citibank still has the Citi Peso
Bonus Saver Account which has interest rates of up to 1.66% per annum.

With a minimum initial deposit of PHP 50,000, you start with a 0.7% interest rate. Every month, your interest
rate will increase by 0.08% as long as you increase your average balance by PHP 20,000. After 12 months,
you’ll reach the maximum 1.66% rate.

However, you still need to maintain your PHP 20,000 increase month on month if you want to keep your
interest rate at the maximum. This is perfect for anyone who wants to be strict in building up their account
balance. You can also retain the maximum rate once you can maintain an average monthly balance of PHP
5,000,000.

In close second is Sterling Bank’s Bayani OFW Savings Account with a 1% interest rate per annum and only a
PHP 2,000 maintaining balance. This is perfect for OFWs who need to remit money to their family and build up
their savings at the same time. However, as its name suggests, it’s limited only to OFWs.

Best Digital Bank for High-Yield Savings & Time Deposit: Tonik
(Garcia, Lanz Raven C.- Live Reporting)
With the continued rapid growth of digital transactions5 in the Philippines, it’s no surprise that digital banks
such as CIMB Bank Philippines and ING Philipines have gained in popularity. Apps such as Komo by East
West Bank and Diskartech by RCBC are also seeing an increase in transactions.

The Bangko Sentral ng Pilipinas is supporting this growth. In fact, in September 20216, they granted digital
banking licenses to an additional 6 digital banks in the Philippines namely, Maya Bank, Overseas Filipino
Bank, Tonik Digital Bank, UNOBank, Union Digital Bank, and Gotyme.

If you are looking for an alternative to the low-interest rates of traditional banks, then high-yield savings
account from a digital bank may just be for you. Due to having no physical branches, they pass on those savings
in the form of higher interest rates for their clients.

Tonik currently offers the highest interest rate per annum at 4% for a Solo Stash account and 4.5% for a Group
Stash account. While relatively new in the Philippines, Tonik has established a regional reputation with offices
in Singapore and India. As of this writing, they also have a 4.1-star rating in both the Google Play Store and
Apple App Store.

They have a stash system in place where you, the account holder, can separate your savings into different
“stashes” according to your different goals. Currently, a maximum of 5 stashes is available per account.
Tonik also offers the highest interest for time deposit accounts with a range of 6% per annum for a 6-month
tenure and 5.25% per annum for a 24-month tenure

What Is a Checking Account? ( Legaspi, Amela M. –Recorded Reporting)

A checking account is a deposit account held at a financial institution that allows withdrawals and deposits.
Also called demand accounts or transactional accounts, checking accounts are very liquid and can be accessed
using checks, automated teller machines, and electronic debits, among other methods. A checking account
differs from other bank accounts in that it often allows for numerous withdrawals and unlimited deposits,
whereas savings accounts sometimes limit both.
Using Checking Accounts
Consumers can set up checking accounts at bank branches or through a financial institution’s website. To
deposit funds, account-holders can use automated teller machines (ATMs), direct deposit, and over-the-counter
deposits. To access their funds, they can write checks, use ATMs or use electronic debit or credit cards
connected to their accounts.
Advances in electronic banking have made checking accounts more convenient to use. Customers can now pay
bills via electronic transfers, thus eliminating the need for writing and mailing paper checks. They can also set
up automatic payments of routine monthly expenses, and they can use smartphone apps for making deposits or
transfers.
Personal Checking Account
Consumers use this type of bank account to set aside money for future use. Since your deposits collect interest,
your money grows over time.
Personal Checking accounts are typically the first official bank account anyone opens. Children may open an
account with a parent to establish a pattern of saving. Teenagers can also open accounts to stash cash earned
from a first job or household chores and manage money while in college.
Business checking account
This type of checking account can help a business run. For instance, a business may have one checking account
for payroll and another for operating expenses. It also could have other accounts for specific purposes.
Business checking accounts may charge customers extra for transactions surpassing a certain number. If your
business has a lot of cash deposits, consider these charges carefully when comparing business checking
accounts.
Dollar Checking Accounts
Specifically created for individuals who need to make financial transactions using US dollars.
All-in-one checking account that earns interest. It is the ultimate in flexibility that lets you transact in the most
convenient ways wherever you are – whether that’s in the Philippines or around the world.
Checking vs. savings accounts

Best Rural Bank: BDO Network Bank (BDO NB)

(Lucaser, Berlyn V.-Live Reporting)
BDO is a full-service universal bank that provides a complete array of industry leading products and
services to the retail and corporate markets including Lending (corporate, middle market, SME, and
consumer), Deposit-taking, Foreign Exchange, Brokering, Trust and Investments, Credit Cards,
Corporate Cash Management and Remittances. Through its subsidiaries, the Bank offers Leasing
and Financing, Investment Banking, Private Banking, Bancassurance, Insurance Brokerage and
Stock Brokerage services.

- Established in 2004 through the consolidation of Network Rural Bank of Davao del Sur.
BDO Network Bank (commonly known as BDO NB, formerly One Network Bank or ONB) is the
largest rural bank in the Philippines based in Davao City. Established in 2004 through the
consolidation of Network Rural Bank of Davao del Sur, the Rural Bank of Panabo of Davao del
Norte and the Provident Rural Bank of Cotabato.
- The largest rural bank in the country.
As the BDO continue to expand it become the largest rural bank in the Philippines with a network
of 96 branches in Mindanao, 1 branch in Makati and province of Iloilo (including Iloilo City) and a
fleet of 135 ATMs throughout the provinces of Mindanao, including seventeen localities where it is
the sole provider of financial services.
- Offers both savings and checking accounts, the first rural bank to do so.
It is said that with only 500 pesos you can already open an optimum saving account with
competitive interest rate from 0.35% to 1%. Kids and teenagers (aaroung twelve years old and
below) are also encouraged to save money and develop their personal finance IQ early through
the Young Pera Savers.
- Offers salary and business loans for professionals and micro-entrepreneurs.
This rural bank also offers salary and business loans for professionals and microeconomics.
Through these business loans, it is possible for the small businesses and companies to have an
opportunity to expand their business. They help to funded business project and needs of
company. This microeconomics also contributes to the economic growth in the countryside.

BEST FOR TIME DEPOSIT

(Miranda, Paul Hendrix O.- Live Reporting)

- (What is time Deposit?) A time deposit (also known as a term deposit or fixed
deposit) is a type of bank account that earns a fixed interest but can’t be withdrawn
over a specified term or period
  Interest rate – This represents your earnings when you put your money in
the bank for a specific duration. Interest rates differ depending on the bank,
holding period, and amount you’re willing to deposit.
 Holding period - This refers to the length of time in which you allow the
bank to hold your money until its maturity.
 Deposit amount - How much are you willing to set aside for a Philippine
time deposit account? Decide on your deposit amount early on by seeing to it
that it won’t hurt your savings, emergency funds, and monthly budget.

- (How Time Deposit Works in the Philippines) A time deposit in the Philippines
simply allows you to have the bank take care of your money for a period of time. In
return, the bank repays you in the form of earned interest. Your deposited money
will be lent by the bank to other customers at a higher interest rate.

The difference between what the bank earns and what it pays you for your time
deposit interest is called net interest margin

- (How to Open a Time Deposit in the Philippines)

As for the initial deposit or minimum placement, it depends on the bank you choose.
The minimum amount for a time deposit can be as low as ₱1,000 to as high as ₱
100,000.

From there, select your lock-in period or the length of time you want your money to
remain in the bank. Most financial institutions in the Philippines have a lock-in
period of 30 days to 5 years.

- (How to Compute Time Deposit Interest)

Ex. You have an initial deposit of P100,000, which will be locked in for 60 days at
3% interest,

Deposit amount x 3% (60/365 days) x 0.80%

Take note that we can only use 0.80% because we already deducted the 20%
withholding tax imposed on time deposit accounts.

o P 100,000 x 3% x 0.164 x 0.80%

o P 3,000 x 0.164 x 0.80%
o P 492 x 0.80%
o P 393.60 = interest earned for 60 days

- (The Pros of investing in a Time Deposit Account)

1. You Can Invest for as Low as P 1,000
2. Time Deposits are a Safe and Stable Investment Option
3. Interest Rates are Higher Than Regular Savings Account
4. Interest Rates are Fixed and Guaranteed
5. You’ll Get Higher Earnings with a higher Deposit and Longer-Term
6. You Can Receive Interest Payouts
 7. Time Deposits are Also Available in Foreign Currencies
8. It’s Simple to Set up and Understand
9. No Fees Involved, But Earnings are Taxed
10. Time Deposits are Insured
11. You can Borrow Money From your Time Deposit Account.

- (Cons of Investing in a Time Deposit Account)

1. Funds are locked in for 30 Days to Seven Years
2. You Can’t Place Additional Deposits
3. There’s a Penalty Fee for Early Withdrawal
4. You Won’t Have Readily Available Cash For Emergencies
5. There’s No Chance of Earning Higher Withing The Lock-In Period

BEST FOR PAYPAL

(Miranda, Paul Hendrix O.- Live Reporting)

PAYPAL – is an online payment system that makes paying for things online and
sending and receiving money safe and secure.

Paypal is the faster, safer way to send money, make an online payment, receive money
or set up merchant account.

Paypal was founded in 1998 as a libertarian experiment by a group of tech superstars,

including Elon Musk, Max Levchin, and Peter Thiel.
By 2002, in became the go-to brand name in online money management and was
bought by eBay.

- (4 Popular Alternatives to Paypal)

1. Skrill
2. Payoneer
3. Google Pay send
4. Stripe

BEST FOR EXPATS:

(Rombaoa, Roshel M.-Live Reporting)
Whether you’re living in the Philippines permanently or for an extended period of time, you need to
have a bank that will handle your financial transactions.

Expats usually choose banks that trade internationally–either national banks like Bank of the
Philippine Islands or international institutions like Citibank and Bank of America.

To choose the best bank in the Philippines for expats, we focused on the following parameters: ease
of application, online banking, and fees (most importantly ATM fees).
Foreigners with either immigrant or non-immigrant visas and who have been in the country for over
59 days are required to present an ACR I-Card. You can secure this document from either the main
or field offices of the Bureau of Immigration throughout the country. Other requirements include your
foreign passport and proof of address like utility bills.

Some banks may let you open an account even without the ACR provided that you talk with the bank
manager directly. Other institutions are more strict and don’t let expats open an account without proof
of their permanent residency status.

Among all the banks we’ve reviewed, we consider Citibank as the best bank for
expats. Applying for an account is seamless and so are its online banking services. The latter is
crucial especially because Philippine banks are notorious for providing slow over-the-counter
services.

On top of all these, Citibank offers free withdrawals from any ATM in the Philippines and over
20,000+ ATMs around the world.

Without Citibank, withdrawing money from other ATMs here in the Philippines can be really
expensive. In addition to the fees charged by your foreign bank, the Philippine bank also takes at
least PHP 200 for each transaction, not to mention you can only withdraw up to PHP 50,000 at a
time.

If you have multiple Citibank accounts in different countries, you can also transfer money from one
account to another with no transaction fees.

Whatever bank you choose, ensure that you read the terms and conditions as if you’re reviewing a
job contract. Citibank, for instance, charges a monthly fee of PHP 500 if your balance falls below PHP
500,000

BEST FOR OFWs:

(Rombaoa, Roshel M.-Live Reporting)

As an OFW, it has always been your goal to secure your family’s future and have a financial cushion
in case your life in the foreign land goes awry.

An ideal bank for OFWs, therefore, is one that doesn’t just offer a means to save money but also life
insurance tied with it.

With these in mind, we’ve eliminated Metrobank’s OFW savings account because although it requires
zero initial deposit, it doesn’t come with life insurance and a large bank network.

After careful deliberation, we can now give the crown to BDO as the best bank in the Philippines for
OFWs. Through the BDO Kabayan Savings, you can now open an account at any BDO branch with
only PHP 100 (Peso Account) or $100 (Dollar Account) as an initial deposit.

As long as you remit at least once every year, you can keep your account active even with zero
maintaining balance.
Most importantly, opening a Kabayan savings account qualifies you to get free life and accident
insurance. It also builds your credit history with BDO, making it easier for you to apply for loans in the
future.

The runner-up is BPI’s similar product called Pamana Savings Account. Like BDO’s Kabayan,
Pamana also offers free life insurance but a relatively higher initial deposit requirement

Best for Students: Bank of the Philippine Islands (BPI)

(Ueno, Nao R.-Live Reporting)

Mounting school expenses should never be an excuse not to save money. When choosing the best
bank in the Philippines for students, we only focused on two things: low initial deposit and the bank’s
accessibility.

Both BDO and BPI have the largest network of banks and ATMs in the country. Most of these are
located within a short distance from schools to make it easier for students to make transactions.

Both banks have an account type suitable for students. BPI has the Jumpstart account while BDO
has the Junior Savers account. Both of them have a low initial deposit of PHP 100, the same annual
interest rate of 0.0625%, and the same required daily balance to earn an interest of PHP 2,000.

However, unlike BDO which has been notorious for “finding ways” to charge its clients, BPI offers free
ATM withdrawal, free over-the-counter withdrawal if a passbook account, and PHP 100 for over-the-
counter withdrawal if without a passbook.

Best in Online Banking: RCBC

(Ueno, Nao R.-Live Reporting)

Online banking has proven to be useful in the new normal. Thus, if you’re looking for a bank with
online platforms that are reliable, user-friendly, and bundled with amazing features, RCBC should be
one of your top choices.

In 2020, RCBC was hailed as the best digital bank in the country by reputable organizations such as
Alpha Southeast Asia and Asiamoney. The following year, RCBC once again received the title of the
best digital bank from Asiamoney7 as well as the Business Tabloid.

Its mobile application, RCBC Online Banking, includes a variety of features including bills payment to
400 billers nationwide, biometrics login, online check deposits, credit card and loans management,
credit card lock and unlock feature, Forex trading, and so on. 

They also have a dedicated online platform for their corporate customers through the RCBC Online
Corporate site. 
References:
https://filipiknow.net/best-bank-in-the-philippines/
https://www.moneymax.ph/personal-finance/articles/checking-account-guide

WRITTEN REPORT IN

FINMAN3

BANK ORGANIZATION, MANAGEMENT AND OPERATION

________________________________________________________________________

GROUP 6
Lance Justin Valdez – GROUP LEADER
Ralph Sherwin Kieffer Abalos
Diana Corinne Buan
Michael Sison
Marifer Palaganas
Rose Anne Datu
Glenn Cardona
Nino Ace Sidora

________________________________________________________________________

An Academic Paper Submitted to

Ms. Angela Manila
In partial fulfillment of the requirements in FINMAN 3
 BSBA FM 2-1

MAY 2022

2022 PREDICTIONS FOR BANKING INDUSTRY

GROUP 6

G.1 PH BANKING SYSTEM TO RECOVER IN 2022 | THE MANILA TIMES

G.2 PHILIPPINE ECONOMY ON RECOVERY PATH BUT POLICY SEEN REMAINING

LOOSE (PHILSTAR.COM)

G.3

G.3.1

BSP RELEASES P681-BILLION LOANS TO BANKS – MANILA BULLETIN

G.3.2

BSP FINANCIAL INCLUSION SURVEY: 51.2 MILLION FILIPINO ARE STILL

UNBANKED

G.4 CENTRAL BANKS ARE CREATING BUBBLES EVERYWHERE IN THE PANDEMIC

(2 PARTS)

G.5 6 PREDICTIONS FOR BANKING IN 2021 | BANKING ADVICE| US NEWS

G.6 12 WAYS TO IMPROVE YOUR FINANCES IN 2022

G.1 PH BANKING SYSTEM TO RECOVER IN 2022 | THE MANILA TIMES

Reported by: Lance Justin Valdez – LIVE REPORTING

Fitch Ratings Inc. is an American credit rating agency and is one of the "Big Three credit rating agencies", the
other two being Moody's and Standard & Poor's. It is one of the three nationally recognized statistical rating
organizations designated by the U.S. Securities and Exchange Commission in 1975.

On their report entitled “Fitch Ratings 2022 Outlook: Asia-Pacific Emerging Market Banks”, Fitch said the
sector’s outlook is improving:

1. Loan growth is likely to accelerate with the resumption of business and consumer spending, buoying
revenues and offsetting the pressure on margins stemming from excess liquidity.
2. This, along with lower – albeit still elevated – impairment charges, should lead to better net overall
profitability.
3. Loan growth is expected to grow by 8 percent in 2022 from the 3 percent projected growth last year. The
projection takes into account a low base effect and the gradual economic recovery.

Banks are poised to print higher loan growth rates, however, if the economy recovers more quickly than we
expect. This takes into consideration the excess system liquidity and banks’ large appetite to grow, as
reflected in their rapid expansion before the pandemic where loans grew at a CAGR (compound annual
growth rate) of 14.6 percent over 2015-2019.

• Fitch Ratings however warned that a premature return to high growth would leave banks with depleted
buffers, and “vulnerable should the economy face a double dip.”
• According to the credit rating agency, while high-risk appetite in prior years means asset-quality
weakness will remain pronounced and challenges could linger until the first half of 2022, the non-
performing loan ratio (NPL) will likely decline as the economy recovers and banks write off and sell bad
debts.
• NPLs are past-due loans with a principle or interest balance that has been unpaid for 30 days or more
after the due date. This includes the outstanding balance of loans payable in monthly installments when
three or more installments are in arrears.

FIST ACT

The Financial Institutions Strategic Transfer (FIST) Act signed into law earlier this year

allow banks to;

 dispose bad assets through asset management companies

 help keep the banking system stable despite the impact of the pandemic.

Data from the Bangko Sentral ng Pilipinas (BSP) showed that as of September this year, banks’ gross NPL
increased by 29.71 percent to P485.53 billion from P374.30 billion last year.

 Banks are likely to spur sales of bad debt to FIST corporations in 2022 as regulatory procedures and
supply and demand dynamics are elucidated. It is expected that the largest banks will use FIST tactically
 in most cases, disposing of modest packages of NPLs that have poor prospects of recovery so as to
reduce their operational burdens.
 Smaller and state banks with higher NPL stocks meanwhile are likely to offload aggressively to clean up
their balance sheets and restore lending capacities.
 Banks’ credit costs will also be kept relatively high due to the need to replenish provision buffers.
 They noted that net interest margins (NIMs) will continue to be pressured by lower asset yields due to
repriced loans.

However, this could be mitigated by the faster loan growth and potential cuts to reserve requirements.

“We believe the central bank’s monetary policy will remain accommodative, and any hikes in its policy rate in
response to domestic inflationary pressures and higher global rates will be measured until the economy is on a
firmer footing.” – Fitch Rating

The Bangko Sentral ng Pilipinas (BSP) in its last meeting maintained key interest rates at record lows.

Overnight borrowing, lending, and deposit rates were maintained at 2.00 percent, 1.50 percent, and 2.50
percent, respectively.

G.2 PHILIPPINE ECONOMY ON RECOVERY PATH BUT POLICY SEEN REMAINING LOOSE
(PHILSTAR.COM)

Reported by: Ralph Sherwin Kieffer Abalos – LIVE REPORTING

Key Points

 GDP GROWS 7.7% Y/Y IN Q4, BEATS FORECASTS

 HOUSEHOLD SPENDING WAS BIGGEST CONTRIBUTOR TO GROWTH
 PHILIPPINES ON CORRECT PATH TO RECOVERY
 CENTRAL BANK SEEN KEEPING LOOSE MONETARY POLICY FOR NO

BEATING THE FORECAST

In 2021, the Philippine economy grew faster than projected, and it appears to be on track to do so again this
year. GDP grew to 5.6%, exceeding the government’s 5.0%-5.5% target and after a record 9.6% contraction in
2020 driven by prolonged COVID-19 lockdowns.

KEY PLAYERS

 The biggest contributor to growth is the household consumption.

 Households were able to spend their money because of the eased restrictions during the 3rd to 4th
quarter of the previous year
 Robust consumer spending ahead of the Christmas holidays helped bring full-year GDP growth

LOOSE MONETARY POLICY

  "A monetary policy that lowers interest rates and stimulates borrowing
 The Philippine Central Bank promised to prioritize economic recovery, indicating it will not raise
interest rates any time soon
 To promote maximum employment, stable prices and moderate long-term interest rates.

ROAD TO RECOVERY

 The road to growth felt a bump in the first quarter of the year.
 Philippine's road to recovery is still at risk because of inflation due to increased prices of commodities
and services as a result of increasing prices of oil that we are actually facing as of writing
 While the country is experience a speed bump during the start of the year, a decent recovery is still
possible according to ING economist Nicholas Mapa

G.3.PART 1

BSP RELEASES P681-BILLION LOANS TO BANKS – MANILA BULLETIN

Reported by: Diana Corinne Buan – LIVE REPORTING

The BSP total loans and advances to banks by end-November 2020 increased to 680.76 billion.

BSP loans and advances grew by 233.66 percent in the January to November period from 204.03 billion
previous year.

In end-May, before ECQ restrictions were lifted, there were only 174.38 billion loans and advances.

Under what circumstances can banks apply for discounts, loans and advances to BSP?

- When under “precarious financial condition” or

- When under serious financial pressure.
During the most severe lockdown months, BSP issued a set of regulatory relief measures to banks and non-
banks resulting to less availments of its loan facilities such as the rediscounting windows.

Rediscounting – is a BSP credit facility extended to qualified banks with active rediscounting lines to meet
their liquidity needs by refinancing the loans they extend to their clients using the eligible papers of its end-user
borrowers.

As of end-2020, the BSP rediscounting released 26.90 billion, 77.98 percent lower than 122.17 billion the year
before.

About 50 banks have an active rediscounting line with the BSP amounting to 321 billion last year, of which 17
are universal and commercial banks.

Banks can also tap the BSP’s emergency loan facility and overdraft clearing line or OCL.

Overdraft Credit Line (OCL) - to cover shortfalls in the banks' demand deposit accounts with the BSP arising
from clearing operations.
G.3 PART 2

BSP FINANCIAL INCLUSION SURVEY: 51.2 MILLION FILIPINO ARE STILL UNBANKED

Reported by: Michael Sison – LIVE REPORTING

Financial Inclusion - effective access to a wide range of financial products and services by all.

Basic indicator: Account ownership

ACCES - Availability of financial touch points

USAGE - Uptake of financial products and services

QUALITY - Consumer experience

WELFARE - Impact

STATUS: FINANCIAL ACCES

Access Points and Counts

Banks - 12,820

ATMs - 21,777

Pawnshops - 13,801

MSBs - 6,784

Credit cooperatives - 2,711

Microfinance NGOs - 3,887

E-money agents - 43,740

Cash agents - 17,057

31% UNBANKED LGUs

5% UNSERVED LGUs

STATUS: ACCOUNT OWNERSHIP

Total Adult Population - 72.0 M

Highest growth in class E (poor) Income and gender gap narrowed. Share of accountholders who use their
account for payments increased to 39% from 18%.

With accounts - 29%

Without accounts - 71%

STATUS: QUALITY ( CONSUMER EXPERIENCE)

Ease of applying for loan

 Definitely easy
 Somewhat easy
 Can't say
 Somewhat difficult
 Definitely difficult

Reasons for difficulty

 58% do not have documentary requirements

 42% do not have collateral
 37% do not have enough ID
 30% level of salary not acceptable

Assessment of fees

 5% too expensive than what I assess

 17% Somewhat more expensive
 51% Same with my estimate
 38% Slightly cheaper than what I assessed
 16% A lot cheaper than my assessment

Common concerns

37% of those who transacted with access points encountered issues

 Long lines
 Long service time
 Personal information was shared to others
 System always under maintenance
 Receiving/sending money is delayed
 Mistreated by staff
 Was asked to go back and forth to finish transaction

DIGITAL FINANCE

Mobile phone Usage for Financial Transactions

75% of mobile phone owners own a smartphone but only 12% use their phone for financial transactions.

Internet Usage for Financial Transactions

53% use the internet but only 9% use the internet to perform financial transactions.

CHALLENGES

Barriers to Account Ownership (%)

71% do not have account (51.2M) total adult population

 Not enough money 45%

 Not needed 27%
 No documentary requirements 26%
 Expensive 14%
 Don’t know the details about this or how it works 17%
 Distance to financial institution 8%
 Not aware 7%
 No trust 5%

CURRENT SOLUTIONS

Challenges

 Not enough money

 Expensive
 No documentary requirements
 Not needed
 Don't know how it works
 Not aware
 No trust
 Distance to financial Institution

Outgoing initiatives

 Basic Deposit Account (BDA)

 E- money account
 Philippine Identification System (PhilSys)
 Strategic use cases if transaction account ( social benefits, wages, transportation)
 Payments and fund transfers using InstaPay and PESONET
 Financial education and consumer protection
 Cash agents/e- money agents

THE WAY FORWARD

Financial Inclusion level in 2019 from 29% to Financial Inclusion level in 2023 by 70%

Three pilars

 Democratized access to a transaction account ( BDA, e- money)

 Expansive network of low-cost touch points (Cash/ e-money agents)
 Efficient retail payment system ( National Retail Payment System)

Under these are the Creating Compelling Use Cases, Building the Digital and Financial Infrastracture, and
Fostering Trust and Financial Literacy.
G.4 PART 1

CENTRAL BANKS ARE CREATING BUBBLES EVERYWHERE IN THE PANDEMIC

Reported by: Marifer Palaganas – LIVE REPORTING

Before digging down to the main topic, know first what is bubble. Normally, the picture above is the
bubble people normally know, but in the economy’s context, a bubble is the rapid escalation of market value,
particularly in the price of assets. And then sooner or later, the high prices become unsustainable and they fall
dramatically until the item is valued at or even below its true worth. This quick decrease in value, or a
contraction, is sometimes referred to as a "crash" or a "bubble burst.”

After defining the bubble referred to in this discussion, go now to the discussion of the main topic
below.

A COMMON THREAD RUNS THROUGH THESE SCENES FROM THE PLAGUE YEAR
2020:

Cheap money (the money that can be borrowed with a very low-interest rate or price for borrowing)
gushing in from the world’s major central banks has inflated assets and reshaped how people save, invest, and
spend.

And that’s not the end of it. Unlike past recoveries, when investors had no clarity on when the monetary
policies would be tightened, this time officials have explicitly said they are going to stick to their loose policies
well into a post-Covid recovery.

These happen as a response to the effect of the COVID-19 crisis on the economy. Shown below is the
strategy to help boost the economy, the hope behind it, as well as its inevitable side effect and risk.

 The strategy is clear and deliberate:

Stop the movement of price in the bond market and make debt the cheapest it’s ever been to
deter saving and encourage investment.

 The hope:
Cheap cash leads companies to invest and hire as rising asset prices make people more confident
and ready to spend.

 The inevitable side effect:

A more rapid or unexpected change in the price of assets (apart from bonds) as investors chase
returns around the world.

 And, of course, the risk:

An increase in the prices of assets happens that might have an adverse effect on the financial
stability before the real economy can benefit from all that cash injected into the economy.
 But with the strategy to cope with the adverse effect of COVID-19 on the economy, Agustin Carstens
says that if liquidity is enhanced dramatically – referring to the concept of cheap money – the money will go in
search for yield and certainly can expose assets to mispricing. Mr. Carstens added that “This is a risk and
something that needs to be recognized and that needs to be watched very, very carefully.”

There are signs of bubbles as stock prices jumped by a magnitude not seen since the dot-com era
(technological advancement where many investors invested in internet companies without further assessment,
stock prices also increased in this era). New share listings boom, and Bitcoin (a cryptocurrency), though volatile
(exposed to a rapid or unexpected change), continues its generally upward climb. However, Central bankers,
including the U.S. Federal Reserve’s Jerome Powell, are well aware of the danger. Surging valuations, or the
stock price increase, are said to have been too obvious to ignore.

Powell, Bank of Japan Governor Haruhiko Kuroda, and other leading central bankers are taken to task
about bubbles in markets in recent months, but they made the concern seem like it is not that important or it is
not as bad as it is. They did that because they were mindful of the danger of stopping the loose monetary
policies too quickly.

After coming out of the last crisis a decade ago – this may be the global financial crisis in 2008 –
policymakers in some economies probably did not loosen their monetary policies for fear of creating bubbles
and ended up putting the brakes on the economic recovery, knowing that the strategy to help boost the economy
is to loosen monetary policies.

When the pandemic’s spread led to shutdowns across much of the world, most central banks went all in.
They made positive interest rates to near zero and many set up emergency funding for struggling companies.
According to the International Monetary Fund, across 2020, governments rolled out at least $12 trillion to boost
the economy, and central banks provided trillions more in monetary support.

The policies undertaken by governments and central banks stated above worked, as global bond markets
that showed alarming signs of dislocation last March turned calm. Stock markets increased in value. Currencies
in emerging markets have increased compared to other currencies, letting their central banks get in on the easing
act, too. There have been positive results but it has incurred extraordinarily low yields even for the longest-
dated debt securities and traditionally riskier borrowers that normally have high yields.

As of Dec. 31, 2020, $17.8 trillion in debt was trading with a negative yield. Bonds that are commonly
having higher yields compared to other bonds are having just equal yields to those bonds that commonly have
lower yields than them.

Alicia García-Herrero said that “Central banks, and especially the Fed, have already created bubbles.”
She also points to the disconnect between markets that are showing growth and a very uneven economic
recovery, in other words, a part of the economy is improving (stock market), but a part of it is having low yields
(bond market).

Another statement from Alicia García-Herrero states that central banks know what they are doing—
basically lowering the return of safe assets (bonds) to increase demand for risky ones (stocks). She also added
that once central banks do that, a bubble might appear, but the cost of not doing anything is probably even
higher.
G.4 PART 2

CENTRAL BANKS ARE CREATING BUBBLES EVERYWHERE IN THE PANDEMIC

Reported by: Rose Anne Datu – LIVE REPORTING

PANDEMIC ERA CENTRAL BANKING IS CREATING BUBBLES EVERYWHERE

BIDDING OF SEVEN HOUSES

There had been an auction of 7 houses in Wellington last November 9, every house have 80 Square Meters And
3 Bedrooms Cottage. The price of the houses started with 945,000 New Zealand Dollars or 679,000 US Dollars.
This price of each house are to much compared to it’s Rateable Valuation Assessment Price of 640, 000 New
Zealand Dollars of the local government.

RESERVE BANK OF NEW ZEALAND

New Zealand’s central bank had managed to skirt the global financial crisis without resorting to quantitative
easing, but the pandemic blew that up.

Quantitative easing - central banks increase the supply of money by buying government bonds or other
securities, because when money increases the interest rates are lower and if it’s lower, banks can lend with
easier terms. Also it helps to keep inflation low and stable. So New Zealand resorted on cutting rates and bond
buying programs reason why the supply shortage coupled, which resulted to house price increased, meaning the
bubbles itself.

Macclelland and Harrt Greenwood, a couple in their late 20’s, tried to bid but the bidding price risen to 1.2
million dollars which leads them to not getting the house as it was so pricey. Harrieta blame the lack of supply,
adding that low interest rates are the reason that people bids higher as they can borrow money on banks
knowing the interest are lower. That disappointment mirrored the other population groups of the world. Owners
of appreciating assets became more wealthy while those who are not, doesn’t cope up.

500 RICHEST PEOPLE ADDED $1.8 TRILLION TO THEIR COMBINED NET WORTH LAST
YEAR, TAKING IT TO $7.6 TRILLION

Until January 2021, Amazon.Com Inc. Founder Jeff Bezos remained as the world richest person, because of
online retailing that have surge when pandemic hits.

Elon Musk claimed the spot as the world richest person, because of TESLA.COM skyrocketed value. Last
October 25 36 billion dollars have been added to Elon Musk fortune, because HERTZ ordered 100, 000
vehicles to his company. Also he’s the first person to have the fastest wealth creation in history.

Combining Jeff Bezos and Elon Musk wealth gained for twelve months, it’s about 217 billion dollars. It can
provide 2 thousand US dollars check for 1 million Americans.

OPINIONS OF SOME ABOUT IT

Central bankers deepening inequality by whipping markets to frothy heights while doing little wages gains and
job creations in the real economy- CRITICS.
  All I can do is try to make aggregate strong- RESERVE BANK AUSTRALIA GOVERNOR PHILIP
LOWE
 More government spendings - FORMER SECRETARY LAWRENCE SUMMERS AND FORMER
COUNCIL ECONOMIC ADVISER CHAIR JASON FURMAN
“ PE’s are high, but that’s maybe not as relevant in a world where we think the 10 year treasury is going to be
lower than it’s been historically from return of perspective” – Fed Chairman Powell

Same day with this opinion of Fed Chairman Powell bitcoin price rises to 20,000 dollars, 305 percent compared
to its previous price which was within that day too.

” Bubbles aren’t an economic problem until they pop “

So, bubbles wouldn’t be an economic problem unless it pop. Like what happened on 2005 with housing bubble.
It was fueled by credit default swaps, which allows lenders to swap risk with others. Some fund manager
created huge demand for these risks’ free securities mortgages. To meet the demands mortgage brokers offered
home loan to anyone, that lead to house demand and house prices rise. When the demand for houses lowered,
the bubbles it created pop which resulted to subprime mortgage crisis.

G.5 6 PREDICTIONS FOR BANKING IN 2021 | BANKING ADVICE| US NEWS

Reported by: Glenn Cardona – LIVE REPORTING

The coronavirus pandemic turned the world on its head, and some aspects of the way consumers conduct their
financial lives will likely be changed forever. If there's any silver lining to it all, though, some of those changes
will be positive as we head into the next year. From policy improvements to advances in digital banking, here is
what banking experts predict for 2021.

1. The Biden Administration Will Institute New Banking Policies

Over the past four years, several major policy changes were enacted that impacted the banking industry.
Overall, the new Biden administration will likely exert greater scrutiny of the financial services industry at the
federal level, according to Catherine Brown, advisor at advisory and investment firm Klaros Group.

 Additional financial relief for individuals and small businesses

 Comprehensive infrastructure package
 Undoing some of the changes made by the Trump administration

2. Banks Will Get Creative About Encouraging Savers

In light of the financial turmoil caused by the pandemic, the Federal Reserve stepped in with emergency
measures to keep the economy afloat. That included lowering the federal funds target rate to less than 0.25%,
the lowest it's been since the Great Recession. The Fed stated it intends to keep rates near zero through at least
2023.

That's great news for anyone who wants to borrow money, but savers have seen their interest rates slashed to
nearly nothing. As a result, banks will have to find other ways to encourage deposits, and prize-linked savings is
one option that will see growth in 2021, says Adam Moelis, co-founder of Yotta Savings, which employs a
lottery like feature.
3. Contactless Payment Will Be More Popular Than Ever

During the pandemic, the ability to pay digitally and in real time was not only safer than using cash, but also
more convenient, according to Allison Beer, head of digital at Chase Bank. "We expect consumers to continue
to use digital payments even more frequently in the new year." she says.

In fact, according to data collected by Chase, 30% of peer-to-peer payment users signed up within the last six
months, while 45% of long-term users are relying on this form of payment more often than they were a year
ago. The use of tools such as PayPal, Venmo and Zelle will continue to rise in 2021 as consumers and small
businesses become more comfortable with the idea of going cashless.

4. The Customer Experience Will Be Largely Virtual

It's not just payments that have gone digital. With social distancing a key measure against COVID-19 exposure,
businesses have had to get creative about how they interact with customers – banks included.

According to Iyer, services such as live video chat and collaboration technologies such as high-performance
cobrowsing, secure form fill and secure file transfer will become commonplace next year. "These tools allow
digital hand-holding during complicated processes such as mortgage or commercial loan applications, which
reduces errors and friction for both the customer and the banking representative.”

5. Physical Branches Will Become a Thing of the Past

With heightened focus on mobile apps, contactless payments and other digital services, banks will be better able
to meet their customers virtually. But even as successful vaccines for COVID-19 are developed and distributed,
the convenience and speed of virtual banking will make consumers less likely to visit physical bank branches
for their financial needs.

According to a PwC survey during the spring, the pandemic made about a quarter of consumers prefer online
banking to visiting a branch, accelerating a trend already in place.

6. Identity Theft Will Run Rampant

Though the increase in digital services makes banking more convenient, safe and accessible for many, it also
opens the door for more fraud. Because more Americans will conduct their financial lives online in 2021, there
likely will also be an increase in identity theft stemming from data breaches and social engineering scams, says
Giselle Lindley, principal fraud consultant for ACI Worldwide, a payment services firm.

The good news? According to Lindley, increasing pressure will come from consumer protection regulators for
financial institutions to take responsibility for protecting customers from fraud and assuming liability for loss.

G.6 12 WAYS TO IMPROVE YOUR FINANCES IN 2022

Reported by: Nino Ace Sidora – LIVE REPORTING

1. Set/Review Your 3, 5 and 10- year Financial Goals - Money is of value only because it helps us achieve
our goal

2. Create a Budget
Budgeting is not as much about reflecting on what you cannot have, but more about thoughts on how to stretch,
invest and spend your earned dollars/Peso wisely. In short, it is about making your money go further.

3. Reduce your debt - Debt can rob you of your future

4. Pay yourself first - Save a portion of your income each time you get paid. Have this automated

5. Start Investing - Investing is one of the best ways to build wealth and achieve your goals. If you are
concerned about risk, ask yourself, “can you afford NOT to take any risks?

6. Credit Score - It shows how well you were able to repay your loans.

7. Protect Your Family - What would happen to your family’s financial situation if you were to become
disable or to to die? Do you have enough insurance to protect them from the loss of income if you were to die or
become disabled? Consult with an insurance advisor for advise on what you need.

8. Prepare or Update Your Estate Plan - A good estate plan is one that provides clear instructions on how
you would like you assets distributed upon your death. The death of a loved one is a difficult time for any
family.

9. Create a Retirement Plan - Regardless of your stage in life, you’re never too young to plan for your
retirement. With most people retiring at 60 or 65 and the average life expectancy at 78 to 80, the average length
of retirement is about fifteen to twenty years. That is a lot of time to decide the kind of retirement you wan

10. Invest In You - The best investment you can make is to invest in yourself

11. Start A SideHustle - “If you don’t find a way to make money while you sleep, you will work until you
die.”. For the new year, start s side hustle. Build a business that aligns with your passions and expertise.

12. Hire A Financial Advisor - Choosing a good advisor is key to your overall financial well-being. A study
done by the investment firm, Vanguard, shows that working with a financial advisor can increase your
investment returns by 3%. Russell Investments puts it closer to 3.75%