If you have at least one of these: GCash, Maya, CIMB, this post is for you.
I think almost everyone from teenagers to early 40s has their own digital banks already. Though it is very convenient to use, there are also times when inconvenience happens.
Why does everyone have it still? Maybe because everyone around them is using it! So here are some of the advantages, disadvantages and risks of digitalizing financial products and services for breadwinners.
Advantage
Increased bank accounts in the past few years. Hindi kasi lahat ng breadwinners afford mag open ng sariling bank account. (can open an account in just a few clicks)
Portability:
With just carrying a phone, pwede ka ng mabuhay (cashless payments)
Can be accessed on any device (tablets, computers, phones, different phones!)
Pag nawala phone mo, pwede mo irequest sa banks na hold yun account mo muna. Or change password sa isa pang phone. Compared to if wallet nawala, wala na talaga.
You don’t need to carry a big amount of money. Ako I just carry P1,000 cash at most.
Variety of services: pay bills, create another account within your account for financial goals.
Time Efficient - as a breadwinner who juggles a lot of hats, sobrang laking tulong.
Digital transactions can be done privately and fast.
Can be done anywhere and anytime. Skipping the long line. Accessing it at 1AM, (it’s my ME TIME na, and BILLS TIME).
Convenience:
Convenience has a price. (kaysa mamasahe pa and pumila, ok na din as a breadwinner)
P15 for bank to bank transfers
2% cash in fee for GCash and Maya if above P8,000 accumulated transactions
Transaction history. You can review your transactions with just a few clicks. (oo nabayaran na kita Mars. Ito proof oh!)
EVERY PESO COUNTS, and INTEREST AS WELL! Most digital banks have bigger interest rates compared to traditional banks with or without online banking. Which makes it more enticing to save more money.
Disadvantages
Not everyone is open to digitalization. Why? Maybe because of a bad experience or perhaps they just don’t want to.
Limitations on transactions (hanggang P20,000 lang per day pwede usually and accumulated P200,000 per month? Some
If totally digital banks lang, no physical bank, baka mahirap makareach out sa human customer service
I had an experience where I paid online in behalf of my client. Nag loko bigla yun signal ng network ko. Nag error. So inulit ko without checking my balance (my fault). Tapos nagtransact na pala yun una. So na doble. I have to report it pa and it took me 1 month before mabalik yung pera ko.
Internet-related. If mabagal internet mo, good luck. A very large part of our population does not have any access yet to the internet.
Risks:
Fraud - involves the creation of new identities by blending personal information from multiple individuals. I received texts wherein they know my first name! Good thing digital banks removed the complete name now.
Data privacy
Scams - Someone called me and asks for my OTP! I recorded our conversation and posted it! IT went viral as well! See my post here!
Cybersecurity
So what to do?
As a breadwinner, EVERY PESO COUNTS. So, having a digital bank is really convenient especially since they also have bigger interest rates than traditional banks. But there are also risks involved.
Since there are risks involved, I advise you to put only a comfortable amount from your savings account, say 50% of your savings, into your digital banks and then the rest into your traditional banks.
At the end of the day, the main purpose of saving in your banks is to maintain the value of your money, with peace of mind, na nakakatulog kayo sa gabi peacefully kasama loved ones nyo.
But remember, PERSONAL FINANCE is very PERSONAL! What works for me might not work for you. But I can suggest to you a number of things you can do to improve your financial health!
So I have limited slots for my 1 on 1 FREE Consultation this December. I personally filter the people who want to have a consultation with me.
Click here for your consultation! First meeting is FREE!
- Reuel Eric Pindoy, Your Life Engineer
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