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May 27, 2024

Philippine digital banks attract $700 million in investments

The Philippines’ digital banking sector is experiencing a digital gold rush, attracting over $700 million in investments since 2021.

According to the Digital Bank Association of the Philippines (DiBA PH), this influx of capital has fueled a surge in customer adoption.

Depositors in Philippine digital banks jumped to 5.9 million by year-end 2023, nearly doubling from the previous year. Deposits followed suit, reaching P69 billion, reflecting growing trust in these new financial players.

DiBA PH attributed this success to the potential of digital banks to unlock economic growth, create jobs, and broaden financial inclusion for Filipinos.

Angelo Madrid, president of DiBA PH and Maya Bank, highlighted the global trend of a 5-7 year journey for digital banks to break even.

“This isn’t just a financial vote of confidence,” said Henry Aguda, DiBA PH trustee and CEO of UnionDigital Bank, in a statement. “It’s a recognition of the power of digital banking to democratize access to financial services and drive innovation, reshaping the future of banking in the Philippines.”

This boom follows the Bangko Sentral ng Pilipinas’ creation of a new digital banking category in 2021 to strengthen financial services. Currently, only six BSP-licensed digital banks operate: GoTyme Bank, Maya Bank, Overseas Filipino Bank (OF Bank), Tonik Digital Bank, UnionDigital Ba