he Bangko Sentral ng Pilipinas (BSP) said only six digital banks will be established in the country after applicants vying for the seventh license failed to submit all necessary requirements.
"We approved six digital banks and it will remain six because the seventh slot, which was supposed to be competed among the nine additional applicants... it turned out that the nine additional applicants failed to submit a complete documentation for their request so we will keep it at six," said BSP Governor Benjamin Diokno during the 53rd Financial Executives Institute of the Philippines Annual Conference on Monday.
The BSP had earlier announced it would limit the digital bank licenses to seven.
It has so far granted digital banking licenses to Overseas Filipino Bank (OFBank), Tonik Digital Bank Inc., UNObank Inc., UnionDigital Bank, GoTyme Bank and Maya Bank Inc.
According to the guidelines, digital banks shall offer financial products and services that are processed end-to-end through a digital platform and/or electronic channels.
They must have a minimum capitalization of P1 billion.
Digital banks are also subject to the prudential requirements set out by regulators. These include governance and risk management, particularly on information technology and cybersecurity; outsourcing; consumer protection; and anti-money laundering and combating the financing of terrorism as provided under existing regulations.
They must maintain a principal/head office in the Philippines to serve as the main point of contact for stakeholders including the central bank and other regulators.
The BSP said digital banks can also grant loans, whether secured or unsecured; accept savings and time deposits including basic deposit accounts; accept foreign currency deposits; invest in readily marketable bonds and other debt securities, commercial papers and accounts receivable, drafts, bills of exchange, acceptances or notes arising from commercial transactions; and act as correspondent for other financial institutions.
They can also act as a collection agent for nongovernment entities; issue electronic money products; issue credit cards; buy and sell foreign exchange; and present, market, sell and service microinsurance products.
"We are banking on new technologies. Adopting new technologies without baggage will be a big boost for these six digital banks. That's why we kept it at six so that we can closely monitor the development and also to make sure that there is a healthy competition among the digital banks and the existing banks," said Diokno.
"We are giving them three years to operate but some are really ready and they have a huge network. The OFW (overseas Filipino worker) bank is already working and I'm sure that the others will be online pretty soon, maybe in less than six months. It's an exciting development," he added.
"We approved six digital banks and it will remain six because the seventh slot, which was supposed to be competed among the nine additional applicants... it turned out that the nine additional applicants failed to submit a complete documentation for their request so we will keep it at six," said BSP Governor Benjamin Diokno during the 53rd Financial Executives Institute of the Philippines Annual Conference on Monday.
The BSP had earlier announced it would limit the digital bank licenses to seven.
It has so far granted digital banking licenses to Overseas Filipino Bank (OFBank), Tonik Digital Bank Inc., UNObank Inc., UnionDigital Bank, GoTyme Bank and Maya Bank Inc.
According to the guidelines, digital banks shall offer financial products and services that are processed end-to-end through a digital platform and/or electronic channels.
They must have a minimum capitalization of P1 billion.
Digital banks are also subject to the prudential requirements set out by regulators. These include governance and risk management, particularly on information technology and cybersecurity; outsourcing; consumer protection; and anti-money laundering and combating the financing of terrorism as provided under existing regulations.
They must maintain a principal/head office in the Philippines to serve as the main point of contact for stakeholders including the central bank and other regulators.
The BSP said digital banks can also grant loans, whether secured or unsecured; accept savings and time deposits including basic deposit accounts; accept foreign currency deposits; invest in readily marketable bonds and other debt securities, commercial papers and accounts receivable, drafts, bills of exchange, acceptances or notes arising from commercial transactions; and act as correspondent for other financial institutions.
They can also act as a collection agent for nongovernment entities; issue electronic money products; issue credit cards; buy and sell foreign exchange; and present, market, sell and service microinsurance products.
"We are banking on new technologies. Adopting new technologies without baggage will be a big boost for these six digital banks. That's why we kept it at six so that we can closely monitor the development and also to make sure that there is a healthy competition among the digital banks and the existing banks," said Diokno.
"We are giving them three years to operate but some are really ready and they have a huge network. The OFW (overseas Filipino worker) bank is already working and I'm sure that the others will be online pretty soon, maybe in less than six months. It's an exciting development," he added.