The Bangko Sentral ng Pilipinas (BSP) is stepping up its game to prevent any confusion in the digital banking arena. Here’s the lowdown:
Who’s in the Spotlight?
Universal and commercial banks that don’t quite tick all the boxes outlined in the draft circular.
Thrift, rural, and cooperative banks that dabble in online banking or wield mobile apps.
Marketing Etiquette:
Picture this: Banks can’t just toss around the term “digital banks” like confetti at a parade.
The BSP wants to ensure that consumers get the real deal—no smoke, no mirrors—about a bank’s category and the services it’s authorized to offer.
Big Banks, Big Conditions:
If you’re a heavyweight bank, you can still strut your digital stuff, but there are rules:
No physical branches or branch lite units. It’s all about the digital dance floor.
At least one fully-digital activity. Think of it as their moonwalk moment.
Flash that advanced electronic payment and financial services (EPFS) license like a VIP pass.
A board member with e-commerce street cred. They’ve got to know their way around the digital marketplace.
Oh, and a minimum IT composite rating of “3.” No room for tech wallflowers here.
Digital Bank License:
The circular, greenlit back in November, laid it out: "Only banks with a legit digital banking license get to wear the 'digital bank' badge."
Circular No. 1105—the rulebook—says existing banks with digital banking services need to apply for the right license. No shortcuts.
Show Me the Money (and Ownership):
Want to join the digital bank party? You’ll need at least P1 billion in your piggy bank.
Digital banks? They’re have—no physical presence, just digital magic.
Foreigners (individuals or non-bank corporations) can own or control up to 40% of a digital bank. It’s like a global remix.
The 5- Licensed Banks:
The BSP has already given the nod to three digital banks:
UNOBank: Yep, another Singaporean player.
UnionDigital Bank: the Union Bank of the Philippines (Unionbank) don its digital tricorn hats.
GoTyme Bank: a Gokongwei group and Singapore-based Tyme.
Overseas Filipino Bank: Proudly owned by Land Bank of the Philippines.
Tonik Digital Bank: Straight out of Singapore, bringing the fintech beats.
In a nutshell, the BSP’s tightening the bolts to ensure transparency while giving the nod to savvy institutions ready to ride the digital wave.
Stay tuned to Your Ledger for more fintech insights.
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