Only licensed banks can use digital banking brand

MANILA, Philippines — Only banks with approved digital banking licenses   can advertise and market themselves under the new banking classification, according to the Bangko Sentral ng Pilipinas.

BSP Deputy Governor Chuchi Fonacier said that based on Circular 1105,   only a bank that is granted the license to operate as a digital bank may represent itself to the public as such in connection with its business name.

“In this respect, a bank should represent itself consistent with its bank classification and the products and/or services that it is authorized to offer,” Fonacier said.

The regulator said that certain banks belonging to other categories use the phrase “digital bank” in their marketing channels even if these banks do not fall under the definition of a digital bank pursuant to the   guidelines issued by the BSP.

Fonacier said a digital bank refers to a bank offering financial products and services that are processed end-to-end through a digital platform and electronic channels with no physical branch/sub-branch or branch-lite unit.

According to the BSP, a bank belonging to other categories such as universal, commercial, Islamic, thrift, rural or cooperative, as well as a bank with a digital-centric business model, may offer financial products and services that are within its powers and scope of authorities, through a digital platform and electronic channels.

“In such cases, the bank may market itself as a bank offering digital banking products or services or other equivalent terms,” Fonacier said.

She reiterated that these institutions should secure the required license on electronic payment and financial services for the said digital banking products or services.

The BSP has granted digital banking licenses to Overseas Filipino (OF) Bank of state-run Land Bank of the Philippines, Tonik Digital Bank, UNObank, Union Digital Bank of Aboitiz-led Union Bank of the Philippines, GOtyme – a joint venture between the Gokongwei Group and Singapore-based digital bank Tyme, and Maya Bank of PLDT’s Voyager Innovations and PayMaya Philippines.