Connect with us

Hi, what are you looking for?

Economy

BSP receives first application for a digital banking license

THE BANGKO SENTRAL ng Pilipinas (BSP) has received the first application for a digital banking license following the release of a framework for the sector in November.

“The application is a partnership of local and foreign players,” BSP Deputy Governor Chuchi G. Fonacier said in a Viber message.

Aside from the first applicant, Ms. Fonacier said there are four more parties that have expressed interest in applying for a digital bank license.

“Initially, the MB (Monetary Board) has set a limit of five digital banking licenses,” she added.

BSP Governor Benjamin E. Diokno on Tuesday said they will assess applicants on a first come, first serve basis.

“We will closely monitor the number of digital banking licenses issued, considering the overall banking situation and the risks posed by these banks to the industry and the quality of prospective clients,” Mr. Diokno said in an interview with ABS-CBN News Channel on Monday.

The central bank in November approved a regulatory framework for digital banks, which sets it apart from other lender classifications such as universal, commercial, thrift, rural, cooperative, and Islamic banks.

Under BSP Circular No. 1105 issued in December, interested parties seeking to apply for a digital banking license need to put up a minimum capital of P1 billion to establish their presence in the country. The framework also allows currently established brick and mortar lenders to convert to digital banks.

Digital banks will likewise be distinguished for having all-online customer processes and transactions while only maintaining a main office for management, support operation, and as point of contact for regulators.

CIMB Bank Philippines, Inc. and ING Bank N.V. Manila are currently offering online-only retail banking services and have been enticing the market through higher interest rates than what traditional banks offer. East West Banking Corp. unit Komo and the Diskartech App of Rizal Commercial Banking Corp. are also offering similar services.

Mr. Diokno has said they see digital banks helping expand Filipinos’ access to financial services.

He said these lenders can help the central bank reach its goal to bring 70% of the country’s adult population into the financial system and to have at least 50% of payments, both in volume and value, done digitally by 2023. — Luz Wendy T. Noble

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

THE BANGKO SENTRAL ng Pilipinas (BSP) sees the country posting a wider balance of payments (BoP) deficit this year as the global outlook remains...

Investing

HMRC’s new penalty regime for late filing and late payments of VAT will be fairer but more complex with interest being charged on all...

Economy

Economic managers said they “strongly support” the creation of the Maharlika Wealth Fund (MWF), after lawmakers agreed to remove a provision in the bill...

Investing

If you’ve been waiting ages for an online order to arrive, you’re not alone. Companies including ASOS, H&M and JD Sports have been getting...

Investing

Ulster University economists expect the Northern Ireland economy to shrink next year, followed by a weak recovery in 2024. The Ulster University Economic Policy...

Investing

The number of people working in programming and computer consultancy has risen by more than 250,000 workers over the past decade, according to Census...

You May Also Like

Investing

The minute that any question pops into your head, you can simply ask Google. No longer do we have to pour over books and...

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Investing

Browsing history makes referring to sites and pages you’ve visited in the past seamless. It’ll help you recall what page you checked out on...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.