Maya is supporting the Department of Social Welfare and Development (DSWD) in rolling out digital payouts under its UPLIFT Assistance program, giving beneficiaries a way to receive government aid while gaining access to formal financial services.
Maya teams recently assisted beneficiaries in Navotas City and Quezon City with account registration and verification in preparation for succeeding digital payouts.
The initiative is part of DSWD’s effort to provide financial assistance to around 2.5 million poor, near-poor and low-income Filipino households while making the delivery of government support more convenient and accessible.
For Maya, however, the effort is about more than moving government assistance from cash to digital accounts.
“For us, the opportunity goes beyond digitizing the payout,” said Angelo Madrid, president of Maya Bank. “When people have access to a digital financial account, they can also start using other services that can help them save, make payments and manage their money better. That is an important part of building financial health over time.”
Beneficiaries who choose Maya as their digital channel can use their accounts for everyday payments and, subject to applicable requirements, access savings and credit products offered through Maya Bank.
That gives beneficiaries an account they can potentially continue using after receiving their government assistance, rather than limiting the digital channel to a single payout.
From government assistance to everyday banking
IMAGE CREDIT: Maya
The move comes as the Philippine government and financial regulators push for wider use of digital financial services, particularly among households that have traditionally had limited access to formal banking.
The Bangko Sentral ng Pilipinas (BSP) has increasingly framed financial inclusion as more than simply giving Filipinos access to transaction accounts. Its financial inclusion agenda also focuses on encouraging people to make meaningful use of financial services and improve their financial health.
The BSP’s National Strategy for Financial Inclusion also promotes digital solutions for government cash transfers and social safety-net programs.
Digital payouts can reduce some of the practical difficulties associated with traditional cash distribution. Beneficiaries may no longer need to travel to designated payout locations or handle physical cash immediately after receiving assistance.
For digital banks, meanwhile, government disbursement programs can provide an opportunity to introduce financial services to customers who may not otherwise have considered opening a digital bank account.
Maya, which operates both a digital banking and payments business, is positioned to offer services beyond the initial payout.
Maya Bank is a digital bank regulated by the BSP, while its deposits are insured by the Philippine Deposit Insurance Corporation (PDIC) up to ₱1 million per depositor. The broader Maya ecosystem also includes Maya Business, its omni-channel payment processing business.
The challenge goes beyond opening an account
IMAGE CREDIT: Maya
The shift to digital payouts also comes with challenges.
Having a digital account does not necessarily mean that a beneficiary will have the connectivity, device or digital skills needed to use it effectively. Security is another concern as more people conduct financial transactions online, particularly amid the continuing rise of scams, phishing and account takeovers.
There is also no guarantee that beneficiaries will continue using their accounts once the government payout has been withdrawn or spent.
For digital financial inclusion to take hold, beneficiaries need to see a reason to keep using the account for savings, payments and other financial needs. Customer support, digital literacy and consumer protection will therefore remain important as government payouts become increasingly digital.
A bigger role for digital banks
Maya’s involvement in UPLIFT reflects the growing role of digital financial institutions in the delivery of government services.
As more government programs move toward electronic disbursements, the opportunity for financial institutions is not limited to processing the payment. The larger opportunity is to build a longer-term relationship with beneficiaries who enter the formal financial system through these programs.
For DSWD, the priority remains getting assistance to households that need it. For Maya, the program provides another avenue to bring more Filipinos into its digital banking ecosystem.
Whether that translates into lasting financial inclusion, however, will depend on what happens after the payout.
The success of digital assistance programs may ultimately be measured not just by how quickly beneficiaries receive the money, but by whether they continue to have access to—and make effective use of—safe, affordable financial services afterward.
Maya describes itself as the Philippines’ #1 Fintech Ecosystem, comprising Maya, the #1 Digital Bank, and Maya Business, the #1 Omni-Channel Payment Processor. The company offers digital banking, payments and other financial services through its ecosystem and continues to participate in initiatives aimed at expanding access to digital finance.
