BSP Coin Recirculation Program: Integrating Digitalization and Financial Inclusion

Through the use of innovative technologies, the Bangko Sentral ng Pilipinas (BSP) has transformed coin recirculation into a convenient, value-adding experience for countless Filipinos. The BSP forged strategic partnership with major retailers to intensify the promotion of the BSP Coin Recirculation Program (CRP) by deploying Coin Deposit Machines (CoDMs) in high foot traffic locations, allowing users to deposit accumulated coins while completing errands. This innovative approach not only addresses the longstanding issue of artificial coin shortage but also promotes financial inclusion and digitalization on an unprecedented scale. The central bank’s comprehensive strategy, supported by a targeted communication campaign, exemplifies a forward-thinking approach toward a more efficient and sustainable Philippine coin cycle.

Coins in circulation significantly increased over the years, yet certain regions in the country continue to experience artificial coin shortage. As of 30 June 2024, there were 41.0 billion pieces of coins circulating in the country, with each Filipino having approximately 376 pieces of coins. This is more than three times the average of 121 coins per capita in 2005. Despite an ample supply of coins, there have been numerous reports of businesses providing customers with insufficient change or no change at all. This necessitated a solution, and in the absence of stringent legislation against coin hoarding, the BSP utilizes its CRP to promote active recirculation and responsible coin usage.

In partnership with major retailers, the BSP initiated an ambitious move to deploy 25 CoDMs across the Greater Manila Area, Philippines on 20 June 2023.

Bangko Sentral ng Pilipinas – Lead Project Owner

Participating Private Retailers:
SM Retail Inc.
Robinsons Supermarket Corporation
Filinvest Lifemalls Corporation

Participating Electronic Money Issuers:
GCash
Maya

The BSP CRP has successfully integrated itself into the mainstream customer routine by placing CoDMs in convenient locations like shopping malls and retail stores. Users are able to deposit their coins while waiting for their turn at the shopping or bills payment counters. Strategically installing machines where consumers already spend considerable time, the BSP has effectively turned what was once an out-of-the way chore into a convenient add-on to daily routine.

As of 30 June 2024, a total of PHP798.5 million or 215.3 million pieces have been collected from the CoDMs. The integration of CRP related initiatives into heavily visited locations has significantly contributed to broader adoption and active participation by the public on regular use and recirculation of coins.

Beyond user convenience, BSP CRP has yielded substantial economic benefits. The CoDM project is expected to contribute to the potential significant coin production cost savings estimated at PHP38.2 million to PHP162.9 million for the first year. This potential reduction in minting costs translates to more efficient use of national resources.

The program’s success soared as enthusiastic public patronized CoDMs and shared user testimonials online. A little over a year since its launch, nearly 200,000 deposit transactions were fulfilled through the CoDMs. The convenience of converting coins into shopping vouchers or e-wallet credits without fees has proven particularly appealing to Filipinos.

Social media updates regarding the CoDM availability in retail outlets have reached more than 2.1 million users, with over 220,000 individuals actively engaging in online discussions, sharing predominantly positive feedback. Long queues in CoDMs suggest strong need for easily accessible banking services. By eliminating the need for separate trips to banks, deployment of CoDMs has promoted effective coin circulation and encouraged greater economic participation by allowing individuals to effortlessly convert coins into shopping vouchers or e-wallet credits while running errands.

Seeking to expand ease of access, the BSP entered into an agreement with a service provider and collaborated with major retailers to deploy 25 CoDMs in grocery stores and shopping centers throughout the Greater Manila Area (GMA), beginning 20 June 2023. Strategically placed in highly accessible areas with dense population to optimize its impact, the CoDMs have allowed Filipinos, including the unbanked and underbanked, to conveniently deposit accumulated coins while completing routine errands.

This game-changing approach offered unparalleled convenience, enabling the public to actively participate in the BSP CRP. All the fit coins that are collected are redistributed through our partner retailers. Any excess coins are returned to the BSP for reissuance to other client banks in need of coins.

Communication Campaign

Recognizing the importance of public awareness to sustain momentum and drive engagement, the BSP launched a targeted communication campaign through various media platforms. Live promotional events covered by the press were held in activity centers and informed the public about and accessible locations of CoDMs, and importance of active coin recirculation.

Explainer videos uploaded in BSP’s social media accounts provided visual demonstration of the machine’s proper usage. Testimonials from actual users of CoDMs were also published, highlighting the convenience brought about by the self-service features of the machine and the financial benefits of utilizing the value of idle coins.

On 31 January 2024, the BSP received the Anvil Silver Award for its “Bawat Barya Mahalaga*: Coin Deposit Machine Communication Campaign” from the Public Relations Society of the Philippines (PRSP) during the “59th Anvil Awards – Gabi ng Parangal” in Pasay City, Manila, Philippines. According to PRSP’s official website, the Silver Anvil is “awarded to public relations programs and tools that meet the highest standards in their respective categories based on set criteria”.

*/ Every Coin is Valuable

The integration of BSP CRP into everyday consumer habits ensures sustained relevance through strategic retail partnerships. The self-service feature of the CoDM allows consumers to deposit coins during mall hours which is beyond regular banking hours. The extended access within a familiar channel makes it more convenient for customers to deposit accumulated spare coins, particularly for those unable to visit a bank during work hours.

Customer support channels are available 24/7 to promptly address any CoDM client concerns. Prompt on-site support is deployed to resolve any technical issues that may arise. Updates and fixes for the machine can also be remotely carried out. In the event of a prolonged service interruption, spare units of CoDM can be readily deployed to ensure uninterrupted operation. Continuous software development and routine preventive maintenance are performed to effectively mitigate risks and minimize the impact of disruptions. All these measures improve the program’s adaptability and continuity when faced with challenging conditions such as natural disasters or health crises.

Within a year of the program’s implementation, the BSP received varying requests from different organizations to deploy CoDMs from big retailers and property development firms, among others. Additionally, other electronic money issuers expressed interest in joining the project. Benefitting from increased customer traffic and direct access to coins for their change fund requirement, the existing partner retailers have expressed interest for additional CoDMs to be deployed in their other establishments. This is a testament to the successful implementation of the BSP CRP which has effectively eliminated barriers to participation, fostering widespread adoption and active engagement of key players in the coin cycle.

The First of its Kind in the Philippines

Bringing convenient access to CoDMs aligns with BSP’s commitment to leveraging technology to advance financial inclusion. Through the integration of CoDMs in the familiar settings of malls and retail outlets, the BSP has established an effortless and attractive means for individuals who were previously reluctant to partake in banking services to convert their coins into shopping vouchers or e-wallet credits. By forging alliances with private entities to bring coin deposit service closer to unbanked communities, the BSP empowered individuals to participate in the formal financial system. Coins, while traditionally overlooked in the Philippine setting, acted as a gateway to promote broader financial literacy and ensure equitable access to essential financial services for all Filipinos.

Changing Lives

The BSP CRP has come a long way since the inaugural meeting held by the BSP Currency Management Committee (CuMC) in March 2005 to address concerns regarding artificial coin shortage. Showcasing its unwavering commitment to efficiency and sustainability in currency management, the BSP successfully integrated active coin recirculation into the modern consumer lifestyles of Filipinos by deploying CoDMs in easily accessible retail touchpoints.

Coins collected from the CoDM are verified and the fit coins are turned over to partner retailers for use as change. By making the coin deposit process hassle-free for Filipinos, the BSP’s innovative CRP not only streamlines the coin cycle, but also encourages a more permanent and responsible coin usage, serving as a catalyst for positive change.

Efficient recirculation can be achieved when all sectors of society fully recognize the importance of coins and cultivate the habit of active coin recirculation. By leveraging innovative technology for meaningful progress, the BSP is securing a brighter and greener future for the next generation of Filipinos.

Coin Handling Beyond the Norm and Environmental Sustainability

CoDMs strategically placed in retail environments promote a culture of environmental stewardship among Filipinos. By integrating coin recirculation into people’s daily routines, the program raises awareness about resource conservation. This subtle yet impactful shift in behavior contributes to a broader societal movement towards sustainability, potentially influencing other aspects of consumer choices and lifestyle decisions.

Deposits made through the CoDMs are credited directly to the client’s e-wallet account or converted to shopping vouchers, allowing for a smooth and convenient experience. This innovative service eliminates the need for over-the-counter bank transactions that often require clients to fill out deposit slips and manually sort and count coins. This solution substantially reduces paper, ink, fuel, and other resources required for manual recording, transporting, and processing of coins.

Furthermore, due to the CoDM Project’s efficient recirculation of fit coins collected from the machines, partner retailers and businesses are provided with direct access to coins for customer change. This reduces their reliance on coin storage facility and transportation logistics.

Overall, the BSP CRP offers significant environmental advantages by encouraging the recirculation of idle coins which substantially reduces the demand for raw materials and energy-intensive manufacturing processes. All these benefits highlight how the automated and self-service feature of the CoDMs minimize the environmental footprint of the BSP and support a green, sustainable, and resilient payment system.