More Foreign Investments in Digital Banking Seen

More inflow of investments from foreign banks for digital banking is seen in the country, according to the Bangko Sentral ng Pilipinas (BSP).

Since the start of the country’s sudden shift to a more digital-focused banking system last year due to the onset of the COVID-19 pandemic, more foreign banks have seen the potential and have expressed intentions to invest and ride the wave of the financial digitalization of the country.

BSP Governor Benjamin Diokno said in a press conference Friday that incumbent foreign banks now want to establish a new digital bank in the country, or convert their existing license to a digital bank license.

Interest in the country’s digitalization has now reached greater Asia and Europe, as BSP has received queries from foreign banks in the regions, according to BSP Policy and Specialized Supervision Sub-Sector managing director Lyn Javier.

Licensing process for interested banks are also on the way as phase one of the licensing process for digital banks were completed for at least three banks that are applying.

The country now boasts 29 foreign banks operating in the country, 12 of which are part of the 2020 list of Global Systemically Important Banks.

The combined assets of foreign banks operating in the Philippines amounts to PHP1.4 trillion, equivalent to 7 percent of the total assets of the country’s banking system. (GFB)