BSP: 6 digital banks may start full operations
MANILA, Philippines — The Bangko Sentral ng Pilipinas has completed issuing certificates of authority to six lenders that applied for digital banking licenses amid the pandemic, supporting the central bank’s campaign for digitalization of retail payments around the country.
In a statement on Wednesday, the central bank reminded the public that the certificates of authority (COA) enable these financial institutions to start full operations. UnionDigital Bank, Inc. (UDB) and GoTyme Bank Corporation (GTYME), which received their COA on July 12 and 29, respectively, were the latest banks to receive the BSP’s approval.
Rounding out the list were Tonik Digital Bank, Inc. (TONDB) and Maya Bank, Inc. (MAYA), both of which received the BSP’s COA in the first quarter. State-owned Overseas Filipino Bank (OFBDB) and UNObank, Inc. (UBI) got the BSP's clearance to start operations in the second quarter.
“OFBDB, TONDB, and MAYA are now fully operational, while UBI, UDB, and GTYME have commenced limited operations targeting select customers,” the BSP said.
The BSP explained that operating on a limited basis is a “conservative approach” utilized by digital banks to address issues that may arise ahead of their commercial launch.
Central bank data reported that 1.4 million electronic payment and financial services transactions, valued at PP.845 billion, were processed by digital banks as of June.
Digital banks have no physical branches and their products and services are all processed through electronic channels.
The BSP expect those three banks in limited operations to publicly launch by the second half of 2022.
This bodes well for the country’s digitalization efforts as the results of a BSP survey found 50% of the country’s adult population owned a financial account as of last year. The proliferation was facilitated by the explosion of cashless transactions at the onset of the pandemic.
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