Phillips Central Bank to Close Window for New Digital Bank Applicants

Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, recently announced that it has decided to close the window for the submission of applications from new digital banks, including converting banks, starting 31 August 2021.

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According to the bank, digital bank applications that are received by the BSP until 31 August 2021 will be processed on a first-come, first-served basis and will be assessed for completeness and sufficiency of documentation/information as well as compliance with the licensing criteria on the establishment of digital banks.

In addition, the applications received on or before 31 August 2021 with noted documentary deficiencies or which do not meet the BSP’s pre-qualification criteria will be returned and will not be subject to further processing. The organizers will be informed that their applications will be deemed closed. After 31 August 2021, the BSP will no longer entertain nor accept new or returned applications.

“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,”BSP Governor Benjamin E. Diokno commented. “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.”

The BSP has already approved the application of five digital banks, including UNObank, UnionDigital Bank, GoTyme, Overseas Filipino Bank Inc. and Tonik Bank.