BANK of the Philippine Islands’ (BPI) microfinance arm BPI Direct BanKo, Inc. has launched a digital savings account to make digital banking easier for its clients.

The basic deposit account called Todo Savings allows clients to earn more as they increase their savings, offering a high interest rate, BPI said in a statement on Tuesday. Deposits worth P5,000 to P50,000 can earn 4% per annum.

“BanKo is continuously innovating products to provide Filipinos with a worry-free, easy-to-open digital savings account,” BanKo Senior Vice-President and Head of Financial Inclusion and Microfinance Solutions Rodolfo K. Ma-biasen, Jr. was quoted as saying. “Now with Todo Savings, clients also get more with higher interest, no frills.”

“With this product, we hope to change the mindset of the unbanked Filipinos regarding opening a savings account, as most of them think that there is no need, while some find the process intimidating. Now we hope to address this by providing them easier access to an equally easy-to-maintain savings account,” Mr. Mabiasen said.

Todo Savings accounts can be opened via BanKo mobile app. Applicants will be required to submit one identification card and make an initial deposit of any amount within seven days of their account’s opening. The account does not require a maintaining balance.

Clients can fund their accounts via other banks or e-wallets via InstaPay. Deposits and withdrawals can also be made through accredited BanKo cash agents nationwide.

Todo Savings account holders will be automatically enrolled in the BanKo app, where they can manage their funds.

The app offers an interbank and intrabank fund transfer feature, which can be used for online transactions.

The central bank wants 70% of Filipino adults become part of the formal financial system and digital payments to make up 50% of transactions in the country by 2023.

BanKo’s parent BPI posted a higher net profit in the second quarter, driven by a net gain on an asset sale and tax adjustments, improved revenues and lower provisions for bad loans.

The Ayala-led bank’s net income rose by 82.9% to P12.5 billion in the quarter ended June 30 from the P6.8 billion recorded in the same period last year.

This brought the lender’s net earnings for the first half of the year to P20.4 billion, up by 73% from the P11.75 billion seen in the same period in 2021.

BPI’s shares closed at P95.60 apiece on Monday, gaining 30 centavos or 0.31%. — K.B. Ta-asan