Global: Philippines central bank approves two more digital banks

A total of six digital banks are now allowed to operate in the Philippines after the Bangko Sentral ng Pilipinas (BSP) issued Certificates of Authority to UnionDigital Bank, Inc. (UDB) and GoTyme Bank Corporation (GTYME).

• BSP earlier authorized four digital banks namely Tonik Digital Bank, Inc. (TONDB), Maya Bank, Inc. (MAYA), Overseas Filipino Bank, Inc. (OFBDB), and UNObank, Inc. (UBI).
• Of the six digital banks in the Philippines, only the Overseas Filipino Bank, Tonik, and Maya are fully operational, while UNObank, UnionDigital Bank, and GoTyme have commenced limited operations targeting select customers. The three are expected to publicly launch within the second half of this year.
• According to the BSP, from January to June 2022, the volume of electronic payments and financial services processed through digital banks reached 1.4 million transactions valued at 8.45 billion Philippine pesos (US$150 million).
• BSP Governor Felipie Medalla earlier told Forkast the reason for being selective in awarding licenses to digital banks was because of the market’s nascent potential as well as its ability to regulate the sector.
• Digital banks “support” the BSP’s aim to digitize half of the total volume of retail payments in the country, and onboard at least 70% of adults in the country into the formal financial system by 2023, a spokesperson told Forkast.