Online banking isn’t new to Filipinos. With most commercial banks continuously upgrading their systems, you can practically do all your banking transactions online.
Why waste time queuing when you can just go online to transfer funds and pay bills, right?
But online banking has its limitations, and this is where digital banking comes in.
ING Bank and CIMB Bank full digital banking at a glance
| ING Bank | CIMB Bank | |
| Opening an Account | Via Mobile App | Via Mobile App |
| Interest Rate (p.a.) | 2.50% (after the promo period) | 0.50% up to 4.10% |
| Account type | Savings Account | 3 types of savings accounts:
|
| Money transfer |
|
PESOnet |
| Bills Payment | Not available | Available |
| Mobile Check Deposit | Available (1:30 AM to 03:00 PM banking days only) | Not Available |
One of the limitations of online banking is that you still need to visit the bank to open a savings or checking account. You need to fill out forms, submit the documents, present valid IDs, and make the required deposit. Only then will you be able to get your login details to access the bank’s website and mobile banking app.
But digital banks eliminate those face-to-face transactions with the banker, the time spent on traffic, and queues to open a bank account. You still follow the same process of opening an account, but in the comfort of your home. Everything is digital.
Fill out the online form within the app, submit the documents, take a photo of a valid ID, take a selfie or video to get verified, and voila! You’ll receive your bank account number via SMS and email.
There are only two digital banks that are covered under PDIC, which insure the money of the depositors. ING (Internationale Nederlanden Groep) Bank) launched its first fully digital retail bank in 2019, and it offers a high-interest rate with no minimum balance and fees.
Malaysia’s CIMB (Commerce International Merchant Bankers) launched its mobile banking app OCTO (now called CIMB Bank PH) in 2019. It also offers full digital banking services with zero maintaining balance and fees.
Overview of ING Philippines Digital Banking
ING is a global bank that has been operating in the Philippines since 1990. It’s present in more than 40 countries and prides itself as the pioneer in branchless banking.
With the ING mobile app, you can open an account and enjoy the perks and benefits of digital banking without making a visit to a local branch.
To start your journey in ING digital banking, search “ING Philippines” and download the app via App Store or Google Play Store.
How to activate your ING Savings Account using the mobile app
Prepare the following documents to activate and verify your ING account:
- One (1) government-issued ID (e.g., driver’s license, passport, Unified Multipurpose ID)
- One (1) document as proof of address (e.g., recent utility bill, credit card statement, certification of voter’s registration, driver’s license, condominium dues bill)
Once you open the mobile app, tap “Open an Account” and fill in the digital form with the following information:
- Your full legal name
- Mobile number
- Email address
- Verification code (this will be sent to your mobile phone)
- 5-digit passcode to access your account
After filling out the form, verify your digital bank account. Make sure to allow access to your camera.
- Take a selfie using your smartphone, preferably with a white background with no other people (or faces) behind you.
- Remove your eyeglasses, cap, or anything else that covers your face.
- Also take a photo of your valid ID on a flat surface. Turn off the camera flash and make sure the photo is clear and without glare.
- Complete your ID and birth information. Your personal information on your ID should be accurate and match the information you supplied in the first part of the application process.
- Complete your mailing address and take a photo of the proof of address you have chosen. Text should be readable. Use the crop tool to adjust the document’s image size.
- ING also requires you to fill in additional information for this verification process, including work/business and tax information.
- Last but not least, take a photo of your signature. Turn off the camera’s flash to avoid glare and blurry spots. Use dark ink on white paper when you write your signature to capture it clearly.
- That’s it! You already have an ING bank account and can start enjoying branchless transactions.
Key features of ING digital bank
- No queuing, no printed forms, no fees
- Accounts with Available Daily Balance of less than P10 million will earn 2.5% interest rate p.a. (subject to withholding tax)
- No minimum amount required on your first deposit
- No maintaining balance in your account
- All savings accounts are subject to withholding tax
- 24/7 customer service (chatbox feature available)
- Check deposit via mobile (take a photo of the check to deposit; available from 1:30 AM to 3:30 PM during banking days)
- Transfer money to other banks using PESOnet for free (cut-off time is 2:00 PM PH time for same-day processing)
- Get e-statements instantly via ING mobile app
- Deposits are insured by PDIC up to P500,000 per depositor
Overview of CIMB Bank Digital Banking
Malaysia’s CIMB Bank Philippines Inc. was opened in December 2018. The Philippines is the tenth and final geographical milestone of CIMB throughout the ASEAN region.
It aims to provide a fully digital banking experience, mobile-first, 24/7 secure banking to Filipinos.
CIMB is offering three types of savings accounts: the Upsave, Fast & Fast Plus Account, and GSave, with higher interest rates per annum compared to local commercial banks.
It has also partnered with GCash so you can open and link your GSave account on their smartphone with no transaction fees and no initial deposit required.
To start your CIMB digital banking, visit the official CIMB website and click ‘Apply Now’. It will take you to a third-party site, which is the GCash website, and walk you through the process of creating a GCash account first.
For the Upsave and Fast Plus accounts, search “CIMB Philippines” in the Apple Store or Google Play Store and download the app.
How to activate your CIMB Savings Account using a mobile app
The account opening process is similar to ING Bank’s. Make sure you have the following documents:
- One (1) government-issued ID (e.g., driver’s license, passport, unified multipurpose ID)
- One (1) document as proof of address (e.g., recent utility bill, credit card statement, certification of voter’s registration, driver’s license, condominium dues bill)
Once you open the mobile app, choose “I need a bank account”. To activate your account, answer the following questions on FATCA Declarations and PEP Declaration and click “Confirm”.
Fill in the online form the following information:
- Your full legal name
- Mobile number
- Email address
- Username
- Verification code (this will be sent to your mobile phone)
- Password for your account
- Other personal details (Nationality, Birthday, Address, and Source of Funds)
You will then go through the verification process. Make sure you have a valid Philippine ID plus a photo of your digitized signature.
Use black ink on white paper and take a photo of it using a camera without a flash to avoid the glare.
After the verification process, you can now use your digital savings account! All it takes is a smartphone and internet access.
Key features of CIMB digital bank
- No queuing, no printed forms, no fees
- UpSave account offers a 4% interest rate p.a.
- GSave account linked to GCash Save Money offers 4.10% p.a.
- Fast Account offers a 0.50% interest rate p.a. and comes with a free VISA debit card upon cash-in or cumulative cash-in of P5,000 for ATM withdrawals
- All savings accounts are subject to withholding tax
- No minimum amount required on your first deposit
- No maintaining balance in your account
- Transfer money to other banks using PESOnet for free (cut-off time is 1:15 PM PH time for same-day processing)
- Deposits are insured by PDIC up to P500,000 per depositor
ING Bank vs CIMB Bank – digital banking in the time of COVID-19
Both ING and CIMB digital banks eliminate the traditional way of applying for a savings account. As all services are available through their mobile app, this means no queues, no printed forms to fill out, no maintaining balance, and no transaction fees.
During this COVID-19 pandemic and Enhanced Community Quarantine, clients prefer to do banking transactions online because it’s safer and faster. Both digital banks offer this essential solution for people who don’t want to visit the branches.
ING digital banking services highlight basic banking features, like their Peso Savings Account with 2.5% interest rate per annum and transferring money to other local banks.
As of this writing, ING offers a 4% interest rate as an introductory offer for new depositors valid until 31 July 2020 only.
Another key feature of ING is making check deposits to your account using its mobile app and just by taking a photo.
CIMB digital banking services also offer a Peso Savings Account, but with a higher interest rate than ING’s if you choose the GSave account.
It has the highest interest rate so far that you can connect with your GCash app with a whopping 4.10% interest rate annually. It allows you to transfer money as well to other local banks, but doesn’t support the mobile check deposit feature.
Which digital bank is better? ING or CIMB?
This will depend on your reason why you want to open a digital bank account.
For starters, the ING app is a good option if you only want to save money and deposit checks via the mobile app while earning high interest.
CIMB has a host of features which includes bills payment. It also doesn’t have a deposit limit for you to earn the 4% interest rate when you open an UpSave account. Although you may need to check their terms and conditions from time to time in case they roll out changes. It’s a good option for a savings account if you want to grow your savings and use it to pay bills as well.
We hope that this comparison will also help you decide where you should put your hard-earned money. If you’re still undecided, why not open an account since it’s free of charge anyway!
Let us know what you think of ING and CIMB digital banks in the comments below.