The Philippines central bank authorizes two more digital banks

UnionDigital Bank, Inc. (UDB) and GoTyme Bank Corporation (GTC) have both received Certificates of Authority from the Bangko Sentral ng Pilipinas (BSP) to begin operations as digital banks in the Philippines.

Tonik Digital Bank, Inc. (TONDB), Maya Bank, Inc. (MAYA), Overseas Filipino Bank, Inc. (OFBDB), and UNObank, Inc. were previously permitted by the BSP.

Although there are six different digital banks in the Philippines, only the Overseas Filipino Bank, Tonik, and Maya are completely functional. UNObank, UnionDigital Bank, and GoTyme have begun limited operations targeting certain consumers. The three are anticipated to debut in the second part of this year.

According to the BSP, the number of electronic payments and financial services conducted by digital banks surpassed 1.45 billion Philippine pesos ($150 million) worth of transactions from January to June 2022.

Governor Felipie Medalla of the BSP previously explained to Forkast that the rationale for being selective in giving licenses to digital banks was due to the market’s unrealized potential and its capacity to govern the industry.

A representative representing digital banks told Forkast that they “support” the BSP’s goal to digitise half of the entire volume of retail payments in the nation and integrate at least 70% of adults into the formal financial system by 2023.

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