The Bangko Sentral ng Pilipinas (BSP) is facing a lengthy process in releasing operating licenses to new digital banking players, casting doubt on whether they can meet the deadline within the year.
BSP Deputy Governor Lyn I. Javier explained that the central bank will release the list of new digital banks "in due time," but declined to provide a specific timeline, saying "I cannot say so" when asked if the release would be possible this year.
The application process for new digital banking licenses includes the BSP's evaluation, granting of a license, and registration of its articles of incorporation and bylaws with the Securities and Exchange Commission (SEC). The central bank has to thoroughly vet applicants, assessing their business model, fitness and propriety of owners, and officers, as well as ensuring they offer a viable value proposition for the banking industry.
The BSP's three-stage application process starts with applying for approval, followed by a 20-business-day notification period for the applicant's organizers, and a 15-day application period for a certificate of authority to register with the SEC. After this, applicants need to seek a certificate of authority to operate a bank, a process that typically takes five working days.
The release of new licenses will depend on how fast applicants can complete the entire process, with BSP Deputy Governor Javier hoping they can do so before the end of the year. However, the central bank has yet to decide which applicants will be granted licenses, as new players are subject to different prudential requirements and application processes compared to those that acquired rural banks.
Currently, six digital banks are licensed by the central bank to operate in the Philippines, including Tonik Digital Bank, Inc., GoTyme Bank Corp., Maya Bank, Inc., Overseas Filipino Bank, Inc., UNObank, Inc., and UnionDigital Bank, Inc.
