MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) expects an exponential rise in online banking transactions as the remaining three digital banks, which were recently given licenses, are expected to start commercial operations within the year.
In his weekly online press briefing, BSP Governor Benjamin Diokno said that UNO Digital Bank, Union Digital Bank as well as GoTyme Bank are expected to start commercial operations within the year.
“Now we expect the volume and value of transactions to grow exponentially when the other digital banks start their operations,” he said.
Of the six entities granted digital banking licenses by the BSP, three are already operating: Overseas Filipino (OF) Bank, Tonik Digital Bank as well as Maya Bank of PLDT’s Voyager and PayMaya.
For OF Bank and Tonik Bank, Diokno said the two that converted their licenses to digital banks were able to onboard additional 120,000 deposit accounts in a span of less than a year.
With a seamless and innovative customer experience in a mobile application for account opening and with the relaxation of regulatory requirements for basic deposit accounts (BDA), the BSP chief said the usual barriers to opening deposit accounts were addressed.
Diokno said the BSP continues to enhance regulations to promote a secure environment for digital banks.
This includes the recent issuance amending information technology (IT) risk management policies, particularly on the implementation of automated as well as real-time fraud monitoring and detection systems.
Moreover, the BSP has consistently been proactive in promoting cyber resiliency and advocating for the zero-trust model to strengthen cybersecurity and IT risk management regulations
“Digital banks will significantly contribute to the growth and development of the digital financial ecosystem catalyzing the attainment of the financial inclusion and digital transformation goals of the BSP,” Diokno said.
Under the Digital Payments Transformation Roadmap, the BSP aims to convert 50 percent of total retail transactions to electronic channels and increase the number of Filipino adults with bank accounts to 70 percent by 2023.
Diokno said digital banks are expected to support economic recovery by enhancing financial accessibility among micro, small, and medium enterprises (MSMEs).
“By offering convenient and affordable financial products tailored to the needs of MSMEs, digital banks can accelerate financial inclusion in the country,” Diokno said.
Digital banks, unlike brick and mortar banks, have no physical branches. Their financial products and services are processed end-to-end through a digital platform or electronic channel.
Aside from offering traditional savings and time deposit accounts, digital banks are also seen to improve MSMEs’ access to credit through mobile-friendly lending and investment facilities.
In addition, digital records of sales and payment transactions can be used in assessing the creditworthiness of MSME borrowers.
“The BSP remains committed to fostering a regulatory environment that is supportive of financial innovations, while promoting healthy competition in the financial system,” Diokno said.