GCash, CIMB Bank partner to offer mobile savings wallet with 2.3% interest rate

Financial technology services provider GCash and Malaysia-based CIMB Bank have partnered to offer mobile wallet users a way to access a digital savings account that offers high interest rates per annum.

In a press briefing in Taguig City on Thursday, GCash and CIMB launched GSave, a mobile savings wallet that offers an interest rate of up to 2.3 percent per year.

Patrick Cuartero, CIMB Philippines chief marketing officer and head of business development and partnerships, said during the briefing that GSave’s interest rate is 10 times higher than traditional deposit accounts, which offer 0.25 to 0.50 percent interest rates.

“Deposits are also insured by the Philippine Deposit Insurance Corporation,” Cuartero said.

He also noted that no maintaining balance is needed.

While the GSave’s features may seem “too good to be true,” the CIMB official said that the business model is sustainable as the bank can save operating costs from building physical branches as its strategy is focused on full digital banking services.

Kim Aimei Seng, head of savings for GCash's holding company Mynt, also said that a GSave account can be opened using the GCash app.

Mynt is a partnership between Globe Telecom, Ayala Corporation, and Ant Financial.

Seng explained that GCash functions as the main channel for GSave while CIMB is the banking services provider as the fintech is not allowed to offer digital financial services with interest rates.

She added that only GCash users with verified identification or those who provided government IDs can tap the GSave service.

Seng added that GSave is GCash and CIMB’s effort to provide more people with easy access to banking and financial services. — BM, GMA News