BSP receives three digital banking license applications

By Katherine K. Chan

THE BANGKO SENTRAL ng Pilipinas (BSP) received just three applications for new digital banking licenses before the deadline ended on Nov. 30.

“The BSP received three digital banking applications within the deadline, which ended on Nov. 30, 2025,” the central bank told BusinessWorld in an e-mail on Friday.

The BSP had earlier opened four slots for new digital banking licenses.

The central bank said there is yet to be a decision on which applicants made the cut, noting that they are still finalizing the evaluation which would then be submitted to the Monetary Board.

“The BSP is currently finalizing the parallel assessment of the three digital bank applicants as provided in BSP Memorandum M-2025-032 dated Sept. 25, 2025,” it said. “The results of said assessment and the related recommendations will be elevated to the Monetary Board.”

It did not disclose who the three applicants are or when the final list will be released.

The BSP lifted its three-year moratorium on digital bank licensing in January this year, hoping to welcome into the industry four new players or traditional banks seeking to convert to digital operations.

The applications closed on Nov. 30 after the Monetary Board approved a new moratorium on licensing in early September.

In June, the central bank said a Europe-based digital bank had completed the requirements for a digital bank license application, while a rural bank had submitted its application but was still working on the requirements.

The BSP earlier noted that approvals would only be given to applicants with strong governance, sound risk management and a clear value proposition for Filipino consumers.

“With the criteria for new digital banks, we expect that they will commence operations with established capabilities — such as expertise in digital financial services, advanced technology platforms, or existing customer ecosystems,” the BSP told BusinessWorld. “These will enable them to scale more quickly and create a broader revenue base.”

To date, six digital banks are licensed by the central bank to operate in the Philippines, including Tonik Digital Bank, GoTyme Bank, Maya Bank, Overseas Filipino Bank, UNObank and UnionDigital Bank.

The BSP said the expected new entrants in the digital banking industry will help boost digital transactions in the country.   

“Their expected contribution lies in expanding user bases, transaction pathways, and payments innovation which are critical to pushing the share of retail digital payments toward the 2028 goal,” the central bank said.

“In terms of pricing, these players are expected to implement a market-based, equitable framework with sufficient flexibility to encourage customer acquisition, transaction volume growth, and ecosystem expansion,” it added.

In 2024, the share of online payments in monthly retail transactions stood at 57.4% in terms of volume and 59% in value terms, according to the BSP’s 2024 Status of Digital Payments in the Philippines report. These are up from 52.8% and 55.3%, respectively, in 2023.

The central bank aims to make digital payments account for 60%-70% of total retail payments volume by 2028, in line with the Philippine Development Plan.