WebClick Tracer

September 22, 2023

Deposit price competition seen intensifying with entry of digital banks

Deposit price competition is seen to intensify with the entry of digital banks in the Philippines, giving conventional and existing banks a run for their money.

In a webinar, S&P Global Ratings primary analyst Nikita Anand said existing industry players face greater and intensified competition as more digital banks start commercial operations this year.

“Many of them are planning to launch operations by mid of this year and this could trigger deposit price competition. Many of these digital banks where we’ve seen when they launch operations, they have a very high deposit rates to attract funds,” Anand said.

It would be recalled the Bangko Sentral ng Pilipinas (BSP) has so far awarded digital banking licenses to six entities. However, it imposed a three-year moratorium on the grant of new digital banking licenses to allow for the close monitoring of the performance of proponents under the new banking classification.

Thus far, Overseas Filipino (OF) Bank of state-run Land Bank of the Philippines and Tonik Digital Bank started commercial operations last year.

On the other hand, UNObank, Union Digital Bank of the Aboitiz-led Union Bank of the Philippines, GOtyme – a joint venture between the Gokongwei Group and Singapore-based digital bank Tyme, and Maya Bank of PLDT’s Voyager Innovations and PayMaya Philippines are scheduled to launch their operations this year.

Due to lower investments in the absence of brick and mortar branches, Anand said digital banks are able to offer five to six percent deposit rates for clients, higher than what conventional banks are offering.

“There’s a huge market out there to capture as Philippines is a very under penetrated market in the sense especially when it comes to retail loans or small ticket loans,” Anand added.


UnionBank gets BSP nod, becomes first and only PH universal bank to offer mobile crypto trading

Proving its status anew as an industry trailblazer, Union Bank of the Philippines (UnionBank) recently achieved another first in the industry after securing a Certificate of Authority from the Bangko Sentral ng Pilipinas (BSP) to operate as a virtual asset service provider (VASP), making it the first and only universal bank in the Philippines to offer virtual asset exchange services.

Read More ...

Maya sweeps banking awards

Fintech firm Maya, a pioneer in digital banking in the Philippines, secures three prestigious awards, including Virtual Bank of the Year, reflecting its commitment to financial inclusion and innovation in the digital banking sector.

Read More ...

HSBC Philippines CEO Sses bright future for the country

Sandeep Uppal, President and CEO of HSBC Philippines, sees a bright future for the country, citing its welcoming nature, rich history, and potential in sustainable finance and renewable energy investments, while emphasizing the importance of work-life balance and long-term career planning.

Read More ...