BSP open to expanding digital banking license issuance next year

The Bangko Sentral ng Pilipinas (BSP) may increase the number of digital banking licenses it plans to issue in 2025, according to Chuchi Fonacier, the BSP’s Deputy Governor for financial supervision.

Fonacier explained that while the BSP is open to the possibility of issuing more licenses, any increase would require approval from the Monetary Board (MB).

Currently, six digital banks operate in the Philippines: GoTyme Bank, Maya Bank, Overseas Filipino Bank, UnionDigital Bank, UNObank, and Tonik Digital Bank. 

In August, the BSP lifted its moratorium on new digital banking licenses and announced that it would resume granting them starting January 1, 2025. 

However, the BSP had previously stated that it would only issue four new licenses, capping the total number of digital banks in the country at 10.

Several entities have already expressed interest in securing a digital banking license. Fonacier noted that the BSP is actively engaging with potential applicants, even before the application period begins. “Of course, the proponents would already plan. We have already started engaging them,” she said.

The BSP has also indicated that it will allow existing banks to convert their licenses into digital banking licenses to fill the remaining slots. 

Additionally, the BSP is evaluating whether any of the current institutions are operating like digital banks.

When asked if the BSP might exceed the limit of four licenses, Fonacier acknowledged the possibility. “It will be up to the MB if it will go beyond the four,” she said. “We’ll see once the applications start coming in and our assessment of the existing ones doing a digital bank-like operation.”