Nominating Organziation Name: Bangko Sentral ng Pilipinas

Organization that owns Innovation

Bangko Sentral ng Pilipinas

Date the Innovation was Implemented/Released


Country/Countries of Implementation:

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.

Project Description

The Philippines’ coins in circulation significantly increased over the years. As of December 2023, there were 40.3 billion pieces of coins in the country, with each Filipino having approximately 357 pieces of coins. This is almost three times the average of 121 coins per capita in 2005. While the quantity of coins is more than adequate, an artificial coin shortage is experienced as coins are not properly circulated. Consequently, businesses frequently give customers insufficient or no change which necessitated the improvement of the Philippines’ coin circulation system.

The Bangko Sentral ng Pilipinas (BSP) has pioneered an innovation that changed the old narrative of coins in the Philippine cash cycle. Prior to launch of the BSP Coin Deposit Machine (CoDM) Project, loose coins were often left idle at home or lost in circulation, creating inefficiencies in the cash cycle. The unbanked population, in particular, had no means to exchange or deposit their coins. Through the CoDM Project of the BSP, the cumbersome process of depositing loose change is streamlined, making it convenient for all Filipinos to deposit their coins and participate in the formal financial system. The BSP has partnered with major retailers to deploy innovative machines that enable the public to convert their idle coins into e-wallet credits or shopping vouchers at no cost. This initiative promotes efficient coin recirculation through strategic public-private partnership, real-time crediting system, and stakeholder engagement. This innovative technology aims to further improve efficiency, sustainability, and resilience of coin circulation in the Philippines.

Project Team:

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

Impact on the cash cycle

Since its launch, the CoDM Project has made significant progress toward providing Filipinos an innovative infrastructure to utilize the value of their idle coins. As of 31 December 2023, a total of PHP350.1 million or 105.7 million pieces have been collected from the CoDMs. The project not only enhances the efficiency of the coin supply chain but is also expected to contribute to potential significant coin production cost savings estimated at PhP38.2 million to PhP162.9 million for the first year.

The project’s popularity has soared as the public patronize the CoDMs. From 20 June to 31 December 2023, more than 100,000 deposit transactions were fulfilled through the CoDMs. This number suggests that Filipinos valued the convenience of unloading heavy coins for digital currency.

The BSP’s CoDM Project received overwhelming public response. Its social media updates about the CoDM Project; has reached more than 2 million users, with over 200,000 netizens engaging online and providing predominantly positive feedback. The long lines indicate high demand for accessible banking services, which not only fosters efficient coin recirculation but also motivates people to participate more in the economy now that they can conveniently utilize the value of their idle coins.

As of 31 December 2023, the BSP received over 24 requests from various entities for machine deployment, while additional three (3) electronic money issuers requested to be onboarded into the project, demonstrating the successful implementation of CoDMs when aligned with stakeholders’ needs, vision, and values.

The success of CoDM Project serves as a testament to the advantages of a forward-thinking central bank that is eager to adopt new technologies and challenge established procedures to better serve its people. The ambitious CoDM Project of the BSP, which successfully connected with stakeholders through vision and value, secures a better future for the next generation of Filipinos.

Ease of Roll-out/Integration

In partnership with major retailers, the BSP initiated an ambitious move to initially deploy 25 CoDMs across the Greater Manila Area which started on 20 June 2023. Strategically placed based on accessibility and population density to optimize its impact, the CoDMs have allowed Filipinos, including the unbanked and underbanked, to conveniently deposit their coins and receive equivalent value. The first of its kind in the Philippines, CoDMs offer real-time crediting features to e-wallet accounts and conversion to shopping vouchers at no cost to the public. Promotional and information campaigns to increase awareness about the proper use and benefits of machines were rolled-out through various media platforms.

The BSP is also making significant progress in collaborating with BancNet* to seamlessly integrate an InstaPay** option available in the CoDM. As soon as this interface is completed, users will benefit from real-time crediting of coin deposits to their bank accounts, without paying additional fees. By utilizing the InstaPay option, clients can enjoy quicker access to funds, eliminating the need for coin counting and bank teller verification at physical bank branches. It also provides users with an option to save and invest the value of their coins.

*/ BancNet is an electronic payments network in the Philippines that enables its members’ clients to transact at Automated Teller Machines, point-of-sale terminals, internet, and mobile phones.
** / InstaPay is a real-time electronic fund transfer service that allows customers to transfer PHP funds almost instantly between accounts of participating BSP-supervised banks and non-bank e-money issuers in the Philippines. This service is available 24/7, all year round and is managed by BancNet as its clearing switch operator.

Resilience of the innovation

The self-service feature of the CoDM also provides customers an accessible channel to deposit coins during mall hours which may go beyond regular banking hours. This extended access makes it more convenient for customers to deposit accumulated spare coins, particularly for those unable to visit a bank during work hours. In addition, customer support channels are available 24/7 to respond to client concerns. On-site support is readily available in the event of CoDM downtime to promptly address any technical issues. Machine updates and fixes can be remotely performed and spare units of CoDM can be deployed immediately in case of prolonged service interruption. Meanwhile, continuous software development and regular preventive machine maintenance are carried out in order to reduce risks and impact of disruptions. All these measures allow essential coin deposit and circulation activities to continue even under challenging circumstances like natural disasters or health crises.

Uniqueness of the innovation

Unlike traditional over-the-counter coin deposit channels, CoDMs are equipped with automated sorting features. Users must simply pour bulk coins into the CoDM’s coin strainer/receptacle and the machine automatically sorts, counts, and bags the deposited coins by denomination using advanced sensor and authentication technology.

The CoDM offers convenience for those who have accumulated a large amount of coins. Instead of packing coins and making multiple trips to the bank, customers can simply pour their coins into the machine and have them counted and credited directly into their accounts or converted to shopping voucher, minimizing risk of coins being lost or stolen in transit. The BSP’s CoDMs also help ease burden of businesses that routinely accumulate coins in their operations. Groceries, laundromats, vendo machine operators and similar entities can deposit their excess coins on a regular basis using the CoDM. This allows them to avoid storing large amount of coins onsite, which reduces the risks of theft, damage, and storage or handling fees. Coins can be converted into usable funds almost immediately.

Further, the capability to make exact payments using e-wallet credits and shopping vouchers has also minimized the likelihood of individuals having delayed service from businesses due to inadequate change. All these convenience and productivity benefits make CoDM Project a game-changing solution in the field of financial technology in the Philippines.

The BSP has placed great emphasis on upholding the safety and integrity of this new technology to foster public trust. Consumers have expressed appreciation for the user-friendly interface and seamless integration of CoDM with major e-money issuers, spreading word that BSP provides a highly convenient and secure channel for depositing idle coins. By prioritizing security and consumer protection, BSP has gained stakeholders’ trust and accelerated adoption of an initiative that has brought more Filipinos into the formal financial system.

Environmental impact

Coin deposits made through the CoDMs are credited directly to the client’s e-wallet account or converted to shopping vouchers, allowing for a seamless transaction experience. This new 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 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, through the CoDM Project, demand for future coin production may diminish which entails less power and fuel consumption, minimizing the environmental footprint of the BSP. All these benefits highlight how the automated and self-service feature of the CoDMs can provide a green, sustainable, and resilient payment system.

Image of the cash cycle innovationIACA - CoDM.png…

Categories: Technical Awards 2024
Tags: Best New Cash Cycle Innovation