Bangko Sentral to license 4 new digital banks

Four new digital banking slots will be up for grabs next year as the Bangko Sentral ng Pilipinas (BSP) resumes the “rigorous” search for new players that, Governor Eli Remolona Jr. said, must “bring something new” to the nascent industry.

In a statement on Thursday, the BSP said it would reopen the application window for digital banking licenses starting Jan. 1, 2025, effectively lifting a three-year moratorium meant to assess the impact of the initial six players in the sector.

This time, the Monetary Board, the highest policymaking body of the BSP, allowed a maximum of 10 digital banks to operate in the country. The four new players would join the six incumbent digital banks, namely UNO Digital Bank, UnionDigital Bank, GoTyme, Overseas Filipino Bank of state-run Land Bank of the Philippines, Tonik Digital Bank and Maya Bank.

“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,” Remolona said.

Something new

But getting a digital banking license won’t be easy this time.

The BSP said applicants would be subjected to a “rigorous licensing process” that would look into their value proposition, business model and resources capabilities. This is on top of standard licensing criteria on governance structure, capitalization and risk management, among others.

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That means only the applicants that have shown capacity to meet the minimum criteria and offer unique value proposition—or develop new and innovative business models that are currently not offered or accessed by existing players—will be granted a digital banking license.

“Applicants must bring something new to the table,” Remolona said. “We want to see unique product and service offerings that are different from that offered by the existing market players.”

The BSP chief previously said “quite a few are interested” in joining the local digital banking sector.