MANILA - The Bangko Sentral ng Pilipinas said it will give four new digital banking licenses starting January 1, 2025. 

From just six digital bank licensees, the Monetary Board has approved a cap of ten digital banks to operate in the country, aiming to boost the Philippine financial system while managing associated risks, the BSP said.

"With this cap, the BSP can closely monitor the digital banking industry's development, gain broader insights as these banks mature, and assess the impact of new entrants," said BSP Governor Eli Remolona, Jr.  

The measure will also allow for conversions from existing banks. The six operating digital banks at present are: Maya, GoTyme, Tonik, Overseas Filipino Bank (OFBank), UNObank and UnionDigital by UnionBank.

“We have based our decision from our assessment of the operations of digital banks,” the Governor added, noting that the BSP took into consideration the digital banks’ financial soundness and achievement of the policy objectives of the Digital Banking Framework of promoting wider adoption and use of digital financial services in the country and expanding their reach into the unserved and underserved segments of society.

New digital bank applicants will undergo a stringent licensing process assessing their value proposition, business models, resource capabilities, ownership transparency, shareholder suitability, and corporate governance, the BSP said. 

"Applicants must offer unique products and services with significant potential to reach broader, underserved market segments," Remolona said.

The central bank said this aligns with the BSP's goals of financial system stability, inclusion, and digital transformation. Previously, the BSP had capped digital bank licenses at six and temporarily halted applications in August 2021 to evaluate the banks' performance and contribution to financial inclusion and digital adoption.