How does financial system in the Philippine work, and how to pay, change and handle your money? (2024)

How does the banking system operate in the Philippines?

• The Philippines has an enormously diverse banking system, many different local banks exist.

What should you pay attention to when choosing a bank in the Philippines?

• Choose a bank that does international business. The three biggest and overall highest scoring banks in terms of quality are BDO, BPI, and Metrobank.
• BDO has the longest banking hours and are open on Sundays in SM Malls.
• BPI has the most branches and ATM's spread out over the Philippines.
• Metrobank is considered as one of the strongest banks in Asia.
• When working in the Philippines your company can help you find a good bank which can also make it convenient for them to transfer your salary.
• Not all banks have (smooth) online banking, make sure you verify whether the bank of your choice allows you to do banking online.
• If you plan on making a lot of international transfers it is advisable to consider a multi-national bank like HSBC or Deutsche Bank AG.

What do you need when you want to open a bank account in the Philippines?

• In most cases you are required to have an ACR I-card (Alien Certificate of Registration card).
• You may be able to open an account with just your passport and another form of ID other than the ACR. Some banks will accept an Immigrant Certificate of Registration (ICR).
• Next to an ACR I-card you will need to bring your passport (or other official photo ID), a passport-sized photo and proof of your address (utility bill or rental contract will suffice).
• You will have to visit the bank in person and fill out the application. It will take a few days for you to receive your bank card for ATM withdrawals, this will be send through mail.
• Banks require a minimum deposit when opening an account.
• Banks often ask for updated information regarding yourregistration. The bank where you open an account will be your personal bank and you will be send to that branch, when you need to update or make changes in your settings.

How does online payment work in the Philippines?

• Not all banks allow customers to do online banking.
• Depending on your bank and where you live it is sometimes possible to pay utility bills online.
• When doing online shopping you have several payment choices to pay online, similar to online shopping experiences in other countries.
• Some banks allow you to easily transfer money to other local accounts using mobile apps or their website equivalent.

What are important factors to consider in regards to exchange rates?

• When changing money, especially large sums, you should be aware of the places that offer the best exchange rates.
• Airport rates tend to be terrible, so don't wait till the last minute to change money.
• Cheapest way to get pesosis by using the ATM as they use the wholesale exchange rate. Be aware that the foreign bank (ATM) can ask a certain extra amount for the service.
• Most foreign banks charge you for using an ATM oversees, in these cases it is advised to take out a few larger transactions instead of many small ones.
• There are many currency exchange dealers in Manila. Competition requires them to handle low fees, which in some cases might result in better deals than at banks. When dealing with currency exchange dealers you have to be careful of hidden costs.

How can you transfer money to the Philippines and what are important points of focus?

• Depending on your bank you might be allowed to directly send money from one bank account to another.
• Several companies are specialized in sending money oversees, all come with their own benefits and drawbacks.
• Experiences from Western Union are mostly negative, with bad costumer service, especially when sending moneyto the Netherlands.
• When you need to send bigger sums of money overseas regularly try to apply for a bank account at HSBC or Deutsche Bank AG.