This decision depends on whether applicants can meet the enhanced requirements set by the Philippines central bank.
The Bangko Sentral ng Pilipinas (BSP) may issue more than the initially planned four additional digital banking licenses when its moratorium on new issuances ends in January 2025, according to the BusinessWorld.
This decision depends on whether applicants can meet the enhanced requirements set by the Philippines central bank.
Currently, six digital banks operate in the Philippines: Tonik Digital Bank, GoTyme Bank, Maya Bank, Overseas Filipino Bank, UNObank, and UnionDigital Bank.
This decision may see more than 10 digital banks operating in the Philippines.
Chuchi Fonacier
BSP Deputy Governor Chuchi Fonacier indicated that this was a possibility if the Monetary Board approves applications with compelling value propositions and innovative solutions for underserved markets.
The BSP is set to release detailed guidelines on the application process within the month.
Fonacier noted significant interest from local and international players, including a European digital bank with a solid track record.
These institutions are encouraged to formalize their status by applying for licenses.
Fonacier emphasized that while the BSP aims to expand the digital banking sector, the quality of applicants remains the priority.
Those applying must undergo a rigorous review process, which will evaluate their governance, risk management, resource capabilities, and ability to deliver unique financial solutions.
If applicants fail to meet the stringent criteria, fewer than four licenses may be granted.
For successful applicants, the licensing process could be completed within a year, provided they also register with the Securities and Exchange Commission.
This could mean that new digital banks could begin their operations next year.
Featured image credit: Edited from Freepik
