thecoinrepublic.com
- The central bank of the Philippines permitted UnionDigitalBank, Inc. and GoTyme Bank Corporation
- Only three banks are fully operational.
Bangko Sentral ng Pilipinas (BSP) has given Certificates of Authority to both UnionDigital Bank, Inc. (UDB) and GoTyme Bank Corporation (GTYME). After this, all together, six digital banks are permitted to function in the Philippines.
Some time ago, Bangko Sentral ng Pilipinas (BSP) permited only four digital banks which included Tonik Digital Bank, Inc. (TONDB), Maya Bank, Inc. (MAYA), Overseas Filipino Bank, Inc. (OFBDB) and UNObank, Inc. (UBI).
Three banks yet to launch completely.
Out of those six banks which have been permitted to operate in the Philippines, the Overseas Filipino Bank, Tonik, and Maya are completely functional. At the same time, UNObank, UnionDigital Bank, and GoTyme have started only finite operations focusing on selected customers. It is also predicted that these companies will publicly launch in the last six months of this year.
Bangko Sentral ng Pilipinas has revealed that the volume of e- payments and financial services handled by digital banks has touched 1.4 million transactions, whose value stood at 8.45 billion Philippine pesos (US$150 million) between January 2022 and June 2022.
The major two factors
The Governor of BSP, Felipe Medalla, has told a digital media platform, Forkast that the reason behind being choosey in giving licenses to digital banks was due to the developing potential of the market along with the capability to regulate the sector.
The target of the BSP to digitize half of the total volume of retail payments in the Philippines is also supported by the Digital banks. The BSP also wants to employ about 70% of youths by 2023 in the formal financial system; the information was given to the Forkast by a spokesperson.