Manila, Philippines – The Bangko Sentral ng Pilipinas has recently announced its plans to lift the moratorium on new digital banking licences, allowing up to 10 digital banks to operate across the country. This move is set to begin on January 1, 2025, with the goal of harnessing the benefits of digital banks and managing associated risks.
Through the new decision, BSP will now grant four additional licences, which will be open to both new applicants and existing banks seeking conversion. Prospective digital banks, on the other hand, will be subjected to a stringent licensing process.
The said process will assess the business models, resource capabilities, and compliance with standard criteria, which include transparency in ownership, shareholder suitability, management fitness, capital adequacy, and strategic plans.
According to the bank, only applicants offering a unique value proposition or innovative business models not currently available will also be considered.
Commenting about the new policy, Eli M. Remolona, Jr., governor at Bangko Sentral ng Pilipinas, said, “With this limit, the BSP can closely monitor developments in the digital banking industry, obtain broader perspective as these banks mature further in their operations, as well as assess the impact of the entry of new players on the banking system.
“Applicants must bring something new to the table. We want to see unique product and service offerings that are different from that offered by the existing market players. These offerings should have significant potential to reach broader clientele, particularly the untapped or underserved market segments,” he added.
Previously, BSP had limited digital bank licences to six and halted new applications in August 2021 to evaluate the performance of the sector as well as its impact on digital transformation and financial inclusion objectives.
