Monetary Board Okays digital banks as another bank type

The Philippine monetary authorities’ bid to increase digital payments’ share to at least half of total retail transactions by 2023 got another boost after the policy-making Monetary Board (MB) recognized digital bank as another bank classification.

In a press statement, the central bank said the MB has approved the recognition of digital bank as separate from existing classification, citing that its products and services ”are processed end-to-end through a digital platform and/or electronic channels with no physical branches."

“We see these banks as additional partners in further promoting market efficiencies and expanding access of Filipinos to a broad range of financial services, bringing us closer to the realization of our target that at least 50 percent of total retail payment transactions have shifted to digital, and 70 percent of adult Filipinos have transaction accounts by the year 2023.

This is seen to remove sticky points and leapfrog our financial inclusiveness agenda” Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno said.

The BSP said digital banks will be subjected to the same prudential requirements as the other banks.