The Unbanked Economy,Banking Problems, Rise Of Digital Banking: BCH Will Take The Lead?

Let's go dive in one of the deepest problems of the developing countries especially about this financial topics 'Why Unbanked People Increases', "Why people chose to keep their money"? "Why people don't trust government with their money?" "Why these things happened"? .

For the sake of a concrete information and facts. I'm gonna use the main problem of my co-Filipinos and my country base on this topic as developing countries since we are one of the top countries who has the highest percentage of Unbanked People. The fact that even myself is belong in this group lol.

Now let's drop some facts and bases before we step on to the main point of this article.

Content Of This Article

• The Unbanked Economy

• Banking Problems And Possible Reasons

• The Rise Of Digital Banking

• Crypto In Philippines

• Digital Banking Feat. Cryptocurrencies: BCH WILL TAKE THE LEAD?

Alright let's get started..

The Unbanked Economy

Let's give some idea first what 'Unbanked' means. According to investopedia,

Underbanked is a related term that refers to families that prefer to manage their finances through cash transactions instead of more traditional financial services, such as checking accounts, savings accounts, credit cards, and loans.

For a simple understanding, unbanked is term for the group of people , a family in a particular developed or developing countries that uses cash to cash transactions instead of using credit cards. I think this much easier lol.

According to World's Most Unbanked Countries 2021,there are hundred millions of people globally have no bank accounts. Merchantmachine revealed that Philippines(4) is in the top 4 most unbanked countries of 2021 after Morocco (1), Vietnam (2) and Egypt (3). The data shows that the highest percentage of the population are relying on cash. Check the image below.

[Source]

Now, we discovered that why these countries, including Philippines chose or declined to open an bank account. What seems to the problem here? Obviously there are 'BIG' reasons behind this huge percentage of Unbanked People.

Banking Problems And Possible Reasons

The Misconceptions Of What Banking Really Is

Banking can bring many benefits and advantages like saving your money, safety of your money, gaining interest from it, faster and convenient transactions. These are just example of it but wait... It's seems like we are taking about cryptocurrencies capabilities Hohoho. Wait hold on we are not yet in the conclusion lol.

Alright we are mentioned the misunderstanding about what banking is all about. But hey, would you dare to understand these things and put all your money if you have just enough money for your everyday needs? Alright next..

Limited Source Of Income

Okay this could be the best and accurate of our first reason why people don't want to open a bank account is because the fund or source itself is the main problem.

According to Biz30, the average income of Filipino Family was around PHP 313,000 or $6,231.27 a year in 2018. How about in this pandemic situations where economic growths are dropped? Would you choose to put on a bank or on your daily needs?. Additionally, the average salary of every Filipino in 2020 was approximately 45 thousand pesos or $946.85 according to statista. How about those jobless and no permanent jobs? Considering that there were 4 million Filipinos were left jobless in January 2021 due to the effect of Covid-19 according to inquirer.net.

I think the above reason are enough why there a lot of Unbanked People in developing countries. Anyway, let's continue..

The Accessibility

This is also the main reason why people don't open bank accounts. The fact that the huge companies and or banks are all located in the cities. Considering that there also families living in the provinces who don't have the preveledge and accessibility to open a bank account.

Alternatively, people in provinces rather to chose remittances where they can send or receive their money within or outside of the country.

Lastly, The Requirements Itself

The other substancial reason could be the requirements for opening a bank account. As we all know, it is necessary to have a complete requirements in able to have a bank account. Well here in our country, in order to have a valid ID, you need to present a valid ID. Ironically, you want to get valid but they ask for valid ID? Tskk. I'm laughing at this XD

Moreover,the cost and expenses your are going to spent for that. Although there are no cost for making the account itself, but the necessary funds to deposit in able to active your account.

Alright, I think all the solid reasons are already dropped. Let's dive in to the next topic..

The Rise Of Digital Banking

We have been proved how difficult banking was in developing countries. How it can bring struggle to the people of these countries. The reasons for the highest percentage of Unbanked People in developing countries was already answered. It may not be the exact reasons but I'm sure that what I have mentioned are included.

Now, we are in the stage of the 'Online Banking' where could be the best and effective alternative way to give previledge to every people in developing countries to have a bank account in just their finger tips.

The fact that pandemic days is not ended yet. People are not able to go out to pass their requirements for opening a bank account band mass gatherings are highly prohibited, Online Banking is the best alternative way.

We all know that Philippines is the social media capital of the world where people can easily access internet and download each chosen banks mobile applications to apply for a bank account without going outside to make transactions.This could be most convenient, accessible and easy way.

According to finscore.ph,there were 7,000 new digital acount was created in March 2021 and there were 20,000 customers who downloaded their mobile application the same month in one of the largest universal bank in Philippines.[source].

Basically, digital banking is much easier and convent way that can work in both different life status of each individual.

Crypto In The Philippines

Philippines is the most active user when it comes to new technologies including cryptocurrencies. So how is Crypto in Philippines?

Now, we have mentioned that we have the most unbanked populations due to some reasons. But wait , the game will totally changed knowing that Philippines has most active users when it comes to cryptocurrencies.

Banking no More!

Despite of the highest percentage of the most Unbanked population in developing countries, Filipinos found an alternative way to overcome this worldwide problem and this is Cryptocurrencies Adoption.

According to Binance’s Changpeng Zhao, Philippines has the most active crypto community in ASIA.In fact, Philippines has numerous licensed exchanges,thousands of pawnshop and remittances that accepts deposits and exchanges from their crypto exchanges partners.

Buying Bitcoin and Bitcoin Cash in the country is getting easier using the most convenience Blockchain-based mobile application Coins.ph.

Coins.ph is serving 10 million customers in Philippines since 2014 with a thousand of useful features. Banking, online shopping, and bill payments that can be supported using the local currency peso or in crypto. The fact that signing up is much easier with just selfie, ID verification , email or mobile number only, cryptocurrencies adoption is too easy. Banking? Who are you?

What's next?..

Digital Banking Feat. Cryptocurrencies: BCH WILL TAKE THE LEAD.

Now I have already mentioned the advantages of having a bank account, benefits and goodness it may bring but, is it fair to all?Is there any equality in there?also, I already mentioned the reasons why Filipinos don't want to have or open a bank accounts. Good thing, digital banking boomed and arise these pandemic situation and the possibility to cryptocurrencies especially Bitcoin Cash adoption is now 100% possible.

Recently, one of the big City in Philippines introduced their own cryptocurrency called 'C PESO'. It is a stable coin but powered by Ethereum Blockchain. People in the city can buy this that can be use for their City Hall transactions to avoid inconveniences and experience cashless transactions.[Source].

Now, the possibility of mass adoption of cryptocurrencies especially Bitcoin Cash in the Philippines is highly possible. Oppps I forgot, Bitcoin Cash is already here. The fact that Philippines is the belong in the top countries where noise.cash and read.cash users came from, I must say that we are ready for this.

If we are going to compare 'C Peso' if this project become successful, to Bitcoin Cash capabilities, people will chose our BCH over this due to the high fees they may experience due to the fact that it was created using Ethereum Blockchain.

Conclusion

By typing all the important information in my article about Digital Banking, Banking Problems And Reasons, Benefits Of Banking, Convenience For The People the only one answer automatically appeared. That's Bitcoin Cash.

For instance in Digital Banking, Bitcoin Cash has it all too. You don't need to go outside and pass all your personal information. Bitcoin Cash comes with bunch of trusted wallets where you can store your funds with.

Benefits in Banking? Bitcoin Cash can give these all to you. Faster transactions? That's not new. Conveniences? That's too easy. Safety of your funds? Damn all the important keys are all yours whether it is public or private. Afraid of not gaining interest? Just play with its volatility, thats an optional. That's much 10x bigger from what Banks can give to you within a year.

"Bitcoin Cash can use like a real cash, can give the benifits what the Banks has, can solve the problems that faced by the masses."

What a rhymes. Thank you for reading 🤗

[Sources and Reference]

E-wallets drive surge in deposit accounts, but over 51M Filipinos still unbanked – BSP

World's Most Unbanked Countries 2021

Why Filipinos Remain Unbanked: Addressing Banking Challenges In The Philippines

The Top 10 Countries Most Reliant on Cash

How much does it cost to open a bank account in the Philippines?

Monthly average salary Philippines 2016-2020

The Digital Shift: The New Post-COVID Reality for Banks and Consumers

4 million Filipinos jobless in January 2021

Benefits of a Bank Account

Why is the Filipino Unbanked?

[Lead Image Source]