banks in the Philippines

9 applicants fail to secure Philippines’ last digital bank slot

Rappler
9 applicants fail to secure Philippines’ last digital bank slot

DIGITAL BANKS. Bangko Sentral ng Pilipinas Governor Benjamin Diokno speaks at an event organized by the Financial Executives Institute of the Philippines on October 4, 2021.

Financial Executives Institute of the Philippines

The Philippines only has six digital banks for now

The Bangko Sentral ng Pilipinas (BSP) said all of the nine applicants vying for the country’s last digital bank license failed to secure the slot.

Speaking in a forum organized by the Financial Executives Institute of the Philippines, BSP Governor Benjamin Diokno said the central bank will not be granting a license for a seventh digital bank due to the applicants’ incomplete requirements.

“It turned out that the nine additional applicants failed to submit the complete documentation,” said Diokno on Monday, October 4.

“That’s why we kept it at six, so that we will be able to closely monitor the development and also to make sure there is healthy competition among the digital banks and the existing banks.”

Diokno also said digital banks are only required to have their headquarters. Branches are not required, which would lower costs, added the central bank governor.

Originally, the central bank said it would approve only seven digital banks. The BSP Monetary Board closed the applications on August 31.

The BSP earlier said applicants who are unable to submit complete documents or those who fail to meet pre-qualification criteria “will not be subject to further processing.”

The only approved digital banks are Overseas Filipino Bank, Tonik Bank, UNObank, UnionDigital, GOTyme, and Maya Bank.

Diokno said these banks were given three years to operate.

The window for digital bank licenses could open again if the central bank deems it needed, the BSP governor previously said. – Marc Aguilar/Rappler.com

Marc Aguilar is a Rappler intern. He is a communication student from St. Paul University Quezon City.