PH Central Bank to Limit Pioneering Digital Banking Players

As the further digitalization of the Philippines is continuously being experienced due to the pandemic and the quarantine situation of the country in 2020, Bangko Sentral ng Pilipinas (BSP) sees it fitting to limit the pioneering players of the rising digital banking industry.

BSP Governor Benjamin Diokno said in a virtual briefing Thursday that the pioneering batch of digital banking players will be limited to five firms.

The central bank has so far received four license applications.

The limiting of entities allowed to five is for BSP to be able to observe the operations of each player, in what Diokno calls as learning “to walk first before running,” so that the central bank will be more prepared and experienced to be able to allow more players to enter the market moving forward.

Monetary Board (MP), the policy-making body of the central bank, has so far approved several digital banks, granting each a license to operate.

One entity granted a license is a subsidiary of the state-owned Land Bank of the Philippines (Landbank), Overseas Filipino Bank (OFBank), received its digital banking license on March 25, 2021.

Moreover, according to Diokno, two other applicants are vying for licensure are thrift banks who are looking to have their current license converted. Apart from the two thrift banks, a new player is also applying for a license.

Diokno further added that applicants are to be given one year upon MB’s approval to complete requirements for their digital banking operations. (GFB)