The Philippines sees 5 banks seeking digibank licenses

Chuchi Fonacier, deputy governor of the Philippines’ central bank (BSP), said they have received five inquiries so far since they issued the framework for digital banking in the country earlier this month.

“Five inquired so far. No formal application filed yet,” the exec told The Star.

As digital banks primarily offer their services through a digital platform, BSP governor Benjamin Diokno said that issuing these licenses can help bring services to the country’s unbanked and underserved.

Under the guidelines, digital banks are required to have a minimum capitalization of 1 billion pesos (US$20.8 million).

“The Monetary Board may limit the total number of digital banks that may be established, taking into account the total number of applications received and the assessment of the overall banking situation,” Diokno stated in the circular.

The development follows Singapore’s issuance of digital banking licenses earlier this year. The Monetary Authority of Singapore awarded new digital full bank licenses to two applicants, the Sea Group and a consortium led by Grab Holding and Singtel.

Meanwhile, digital wholesale bank licenses were granted to the Ant Group and the consortium of Greenland Financial Holdings, Linklogis Hong Kong, and Beijing Co-operative Equity Investment Fund Management.