Philippine digital banking sector attracts over USD700M in investments since 2021

The Philippine digital banking sector has attracted over USD700 million in investments from global and local investors since 2021, marking a significant milestone for the industry.

By the end of 2023, the number of depositors had grown to 5.9 million with deposits reaching PHP69 billion, up from PHP35 billion in 2022.

Gross total loans also increased to nearly PHP25 billion by the end of 2023, compared to PHP11 billion in 2022.

DiBA PH President Angelo Madrid emphasized that these investments underscore the sector's potential to stimulate economic growth and financial inclusion.

Despite posting a combined net loss of P4.38 billion in 2023, digital banks are seen as crucial for driving innovation and inclusivity in the Philippines according to Henry Aguda, trustee at DiBA PH and CEO of UnionDigital Bank.

The Bangko Sentral ng Pilipinas (BSP) established a new digital banking category in 2021 to boost financial services, limiting entry to six banks.

Currently, there are six BSP-licensed digital banks in the country, including GoTyme Bank, Maya Bank, OF Bank, Tonik Digital Bank, UnionDigital Bank, and UNO Digital Bank.