THERE are many groups interested in getting digital banking licenses and Bangko Sentral ng Pilipinas (BSP) governor Eli Remolona is hoping the BSP could issue them “pretty soon.”
At a press chat on Wednesday, Oct. 11, Remolona said, “The ball is on our court… I’m hoping that we can begin issuing licenses again pretty soon.”
In 2021, the BSP imposed a three-year moratorium on issuing digital banking licenses, limiting the number of digital banks to six.
The six digital banks that secured BSP approval to operate in the country are GOtyme of Robinsons Bank Corp., Maya Bank of PayMaya, Overseas Filipino Bank (OFBank), Tonik Bank of Singapore, UNObank of Singapore, and UnionDigital of the Union Bank of the Philippines.
“We’re looking at the existing ones. The six digital banks that have licenses. Essentially, looking at their business models, we’re learning… And then once we get more comfortable with business models, we will allow more licenses for digital banks,” Remolona said.
For her part, BSP director Ma. Cynthia Sison said, “We’re still doing the study on the existing digital banks.”
“Once we have completed that study, the decision whether to lift the moratorium or not will follow,” she said.
In November 2020, the central bank approved the recognition of digital banks as a new bank category separate and distinct from other bank classifications.
Digital banks are defined as banks that offer financial products and services that are processed end-to-end through a digital platform and/or electronic channels with no physical branches.
To qualify, banks must meet the minimum capitalization of P1 billion, and will have to follow all the fiduciary rules imposed on other bank categories. (GMA Integrated News)
