The Bangko Sentral ng Pilipinas (BSP) is preparing to announce a shortlist of candidates for four new digital banking licenses. This update is expected to be delivered to the Monetary Board within the first quarter of 2026. The BSP”s initiative aims to inject more competition into the nation”s expanding digital banking sector, particularly with the inclusion of foreign-backed firms.
After lifting a three-year moratorium on new digital bank applications in 2025, the BSP is now conducting a thorough evaluation of potential candidates for this next phase of digital banking. Currently, the Philippines is home to six licensed digital banks: UNO Digital Bank, UnionDigital Bank, GoTyme, Tonik, Maya Bank, and the Overseas Filipino Bank (OFBank). However, the BSP has indicated that the bar has been raised for this new round of applications. Only those applicants that can showcase a “unique value proposition” will be considered for the shortlist.
According to BSP Deputy Governor Lyn Javier, the focus is on identifying institutions that present innovative business models that significantly differ from the offerings of the existing banks. Despite this emphasis on creativity, the financial requirements remain stringent; all applicants must demonstrate a minimum capitalization of ₱1 billion.
Moreover, the BSP has expressed anticipation regarding the potential entry of foreign-backed digital banks among the new licensees. Deputy Governor Javier noted that the involvement of international players could lead to reduced costs and enhanced service quality for customers in the Philippines. Notably, three of the current licensed digital banks already have substantial foreign investment or ties.
Digital banks represent a distinct category within the Philippine banking landscape. They provide a range of financial products, including savings and loans, but operate primarily through digital platforms, minimizing reliance on physical branches. This operational model allows digital banks to maintain lower costs, which often translates into more attractive interest rates for savings accounts compared to traditional banking institutions.
As the BSP prepares to unveil the shortlist, stakeholders in the financial sector are keenly watching how these developments could reshape the digital banking environment in the Philippines.
