The Bangko Sentral ng Pilipinas (BSP) will reopen applications for digital banking licenses starting January 1, 2025, ending a moratorium imposed since 2020.
Under circular 1205, signed by BSP Governor Eli Remolona Jr., up to 10 digital banks, including six existing players, will be permitted to operate.
The initiative aims to foster innovation in the financial system by introducing new business models while mitigating risks and ensuring fair competition between established banks and new entrants.
With four additional slots available for new digital bank licenses, the BSP is setting stringent requirements for traditional banks seeking to convert to digital-only operations. These include a three-year transition plan to phase out physical branches and compliance with minimum capital thresholds.
Applicants, whether for new digital banks or conversions, will undergo a rigorous assessment process. The criteria emphasize innovation, operational readiness, and financial inclusion.
Applicants must submit a feasibility study with five-year financial projections, an independent review of IT systems and infrastructure, and plans showcasing unique value propositions or business models not currently available in the market.
Foreign entities with proven expertise in digital banking are encouraged to apply, provided their offerings address unmet financial needs in the Philippines.
Additionally, applicants must present governance frameworks, risk management systems, and compliance measures, including anti-money laundering protocols.
The BSP is particularly focused on proposals that target underserved segments of the population. Applicants are expected to demonstrate how their services will expand access to banking products and contribute to broader financial inclusion.
The six digital banks currently operating in the Philippines are Maya Bank, Overseas Filipino Bank, Tonik Digital Bank, UNObank, UnionDigital Bank, and GOtyme Bank.
