Banking for all: A Filipino story

The Philippine banking industry has undergone a remarkable transformation over the years, shifting from the traditional, labor-intensive practices of past decades to a digitally driven system that aims to make financial services more accessible to all.

- MARY ANN LL. REYES

This journey dates back to the Spanish colonial era with the establishment of the first bank in the country, the El Banco Español-Filipino de Isabel II, in 1851. At the time, banking primarily served the elite, catering to wealthy landowners, businessmen and government officials. Transactions were conducted in person and recorded manually in ledgers.

Services were also limited to basic offerings such as savings and loans.

Throughout the 20th century, the banking sector expanded as the country industrialized. Post-war reconstruction and significant economic reforms paved the way for the establishment of more banks, including rural banks aimed at supporting agricultural communities.

However, these services still primarily targeted urban areas, leaving many Filipinos in rural and remote locations unbanked.

The late 20th century saw the gradual adoption of technology in Philippine banking. Automated teller machines (ATMs) were introduced in the 1980s, revolutionizing access to basic services.

Banks began computerizing operations, improving efficiency and customer service. By the 1990s, electronic fund transfers and credit cards had become increasingly common, foreseeing a future of a more connected financial system.

However, it is the rise of digital technology in the 21st century that marked a true turning point for the Philippine banking industry. Mobile banking apps, online platforms and fintech innovations have redefined how Filipinos access and manage their money.

This digital transformation accelerated significantly with the advent of smartphones, a common tool for many Filipinos, bringing financial services directly into consumers' hands.