The Bangko Sentral ng Pilipinas (BSP) will issue up to four new digital bank licenses to expand the digital banking landscape in the Philippines.
The move comes after a ban imposed in 2021 was lifted.
Melchor Prabasan
As BSP senior executive Melchor Prabasan highlighted in The Manila Times, the central bank aims to foster greater competition and financial inclusion by bringing in new players in the digital banking space.
The BSP has set specific criteria for new applicants, emphasizing the need for innovative services and strong value propositions.
If incumbent banks choose to convert their existing licences, they will also be assessed to ensure they meet regulatory requirements for digital banks.
Prabasan said the BSP is committed to maintaining a level playing field and preventing regulatory arbitrage.
This means that all institutions, regardless of their origin or current license type, will be held to the same strict standards.
The new digital bank license application window will open on January 1, 2024.
The BSP said the licensing process could take about three to four months if applicants submit all necessary documents in a timely manner.
Currently, there are six digital banks in the Philippines – UNO Digital Bank, Tonik, UnionDigital Bank, Overseas Filipino Bank (OFBank), Maya Bank and GoTyme Bank.
The increase in new digital banks is likely to increase access to financial services, especially for underserved populations.
Featured Image Credit: Freepik Edit