Ilocanos told being stingy holds promise

LAOAG CITY—A top official of the Bangko Sentral ng Pilipinas (BSP) said Ilocanos, who are widely known as stingy, could make a fortune by capitalizing on their propensity to save.

In a forum here on Monday, Diwa Guinigundo, BSP deputy governor, said Ilocanos should put their money in higher-paying ventures to increase returns on their investments.

Guinigundo said the Ilocanos’ propensity to save was a positive trait that needs to be explored and developed for better results.

“I don’t see the need to change the Ilocanos’ behavior of being kuripot (stingy). If they don’t save, then there’s no money to place in the banks,” he said.

But Guinigundo said the challenge for banks was to present alternatives to traditional savings accounts that are safe and  could increase the return on investments.

“The challenge is to increase their appetite for risks, explore more possibilities for their savings to earn more,” he added.

Guinigundo’s observations were based on a Consumer Finance Survey that the BSP conducted from 2008 to 2010 among households from the National Capital Region (NCR) and in Areas Outside the National Capital Region (AONCR) that included Ilocos, Central Visayas and Soccsksargen.

The survey was administered to 10,520 households where 36.8 percent or 3,872 households came from NCR and 63.2 percent or 6,648 households came from AONCR.

The survey was meant to generate data on households’ financial condition, what they own, from whom and how much they borrow, income levels, spending habits and insurance coverage.

The survey highlights were presented during a forum here on Monday.

Based on the survey, the BSP noted that households in the Ilocos presented the highest percentage of those  getting assistance from overseas and domestic sources.

The result also showed that majority of the respondents would not risk their income on unsafe ventures.

“About seven in 10 respondents chose to stick to their current level of sure income of P1,500 per week rather than take the risk of investing in a new product with 50-50 chance of getting P4,500 (three times their current income) or suffer a loss of P1,500 (equal to their current income),” the survey said.

The BSP said the results showed the need to continue educating Filipino households on the advantages of saving in financial institutions and investing in various forms of financial ventures.

The results also affirmed BSP’s commitment to offer a wide range of financial services from credits, savings, payments and insurance to serve the demands of different market segments. Cristina Arzadon, Inquirer Northern Luzon