Philippines Digital Bank License Review Ongoing, Timeline Unclear

The Bangko Sentral ng Pilipinas (BSP) has yet to set a firm timeline for the approval of new digital bank licenses as applications remain under evaluation and are subject to further documentary and corporate requirements. In an ambush interview, BSP Deputy Governor Lyn Javier said the Monetary Board may decide on new digital bank license applications within the year, although the timing would depend on how quickly applicants complete regulatory requirements after the central bank’s evaluation. She said the applications are now in “varying stages,” but declined to disclose the number of applicants or identify the interested parties. “We will announce in due time,” Javier said. “Because there are factors that we’re also considering in the application.” Asked if a decision could be made within the year, Javier said: “Hopefully.” The BSP lifted the moratorium on new digital bank licenses in January 2025, allowing up to 10 digital banks to operate in the country. There are currently six licensed digital banks, namely Overseas Filipino Bank, Tonik Digital Bank, UNOBank, UnionDigital Bank, GoTyme Bank and Maya Bank. This leaves room for as many as four new digital banks, subject to BSP approval. However, Javier said the process does not end with the BSP’s assessment, as applicants still need to comply with documentary and corporate requirements, including those involving the Securities and Exchange Commission (SEC). “Even if we approve the granting of a license, they still have to process their articles of incorporation and bylaws, which is beyond the control of the BSP,” Javier said. The BSP official said the length of the process would depend on how fast applicants can comply with the requirements of both the central bank and the SEC. The BSP earlier closed the application window for new digital bank licenses starting Dec. 1, 2025, saying it wanted to balance financial innovation with financial stability. The central bank had said applicants would be evaluated based on their governance, risk management framework and value proposition. Javier said the BSP is carefully reviewing the applications, including the proposed business models and the fitness and propriety of the owners, directors and officers. “We have to look at the fitness and propriety of the owners, the proposed directors and officers,” she said. “As you go through the process as well, you have to go back to the applicant and ask these questions. We have to vet it thoroughly.” Javier said the BSP is also assessing whether applicants can offer a viable value proposition that would benefit the banking industry and consumers. But she clarified that the rigorous review is not unique to digital banks, as all bank license applications undergo the same process.