Effective by the end of August, Bangko Sentral ng Pilipinas (BSP) will no longer accept applications for digital bank licensing.
According to BSP, the decision is “in line with the overall thrust of maintaining a stable and competitive environment for banks.”
“The closure of the application window will allow the BSP to monitor the performance and impact of digital banks on the banking system and their contribution to the financial inclusion agenda,” shared BSP Governor Benjamin E. Diokno.
“We need to ensure that the business environment continues to allow healthy competition among banks enabling them to offer innovative and competitive financial products and services to their clients,” he added.
BSP said that filed applications on the last day would be processed on a first-come, first-served basis. The central bank will evaluate the applications received based on the licensing criteria for the establishments of digital banks.
In other words, complete submissions prior to the deadline will only be processed. Incomplete documents or submissions that do not meet the pre-qualification will be returned and will not be accepted next time.
The BSP has approved five digital banks: OF Bank, Tonik Bank, UNObank, UnionDigital Bank, and GoTyme.
However, BSP added it’s confident it could achieve its goal in digitizing 50% of transactions and encouraging 70% of the population to open bank accounts by 2023.