BSP to allow 10 digital banks by Jan 2025

The Bangko Sentral ng Pilipinas (BSP) will allow a maximum of 10 digital banks to operate in the Philippines by January 1, 2025, lifting its three-year moratorium on new digital banking licenses.

The Monetary Board has approved granting four additional licenses, bringing the total number of approved digital banks to six.

BSP Governor Eli M. Remolona Jr. stated that limiting the number of digital banks will allow for better monitoring and supervision of the neobanking sector's growth and development.

New digital bank licenses will also include the conversion of an existing bank's license to a digital bank license.

To qualify, banks must meet the minimum capitalization of P1 billion and will have to follow all the fiduciary rules imposed on other bank categories.

The six banks that have already secured the digital bank license are GOTyme, Maya Bank, Overseas Filipino Bank (OFB), Tonik Bank of Singapore, UNObank of Singapore, and UnionDigital of the Union Bank of the Philippines.

Applicants must bring unique product and service offerings that are different from existing market players and have significant potential to reach untapped or underserved market segments.