GSAVE, a purely digital savings account created by GCash and CIMB Bank, one of Southeast Asia’s largest commercial banks, grew its base to 5.3 million users, with one out of every five banked Filipino adults now using the service as it strives to reach out to the huge unbanked population in the country.
GSave is the first-ever bank account that can be opened and maintained straight from the GCash app.
The GSave depositor base is expected to grow further as CIMB ups its interest rate to 7 percent per annum for new GSave account holders. Current depositors enjoy a 2.6-percent annual interest rate, still much higher than the 0.10 percent to 1.25 percent offered by traditional banks.
GCash is also set to launch the GSave Marketplace that offers users more choices of bank and savings products that best suit them. To be onboarded in the GSave Marketplace is the Bank of the Philippine Islands (BPI), one of the country’s biggest and most reputable financial institutions.
“We want to bring financial inclusion to Filipinos nationwide. Through GSave, we hope to encourage everyone, especially the unbanked, to open a digital savings account. It can open up a whole suite of financial services like loans, insurance, and investment to help uplift their lives. They only need one ID to open a savings account in GCash, then they can start saving right away and eventually avail of other services,” said Martha Sazon, GCash President and CEO told FrontpagePH.com.
GSave was born to fill a need since at the time of its introduction in December 2018, about 70 percent of the country’s adult population remain unbanked.
Aside from high interest rates, zero fees, and quick account setup, GSave does not require a minimum deposit and maintaining balance, unlike most traditional banks. This addresses the primary factor why people remain unbanked: lack of funds.
By partnering with GCash, CIMB Bank has also powered GCredit. It is the top mobile wallet’s first foray into digital lending. So far, GCredit has already provided P29 billion worth of credit line to qualified users even if they do not have a formal income document.
GCash is one of the portfolio companies under 917Ventures, a wholly-owned subsidiary of Globe.
Visit www.gcash.com for details.