here are other applicable restrictions on ownership of voting shares of a digital bank.
Banks intending to offer electronic and payment services, which are products and/or services that enable consumers to carry out or initiate payments electronically, financial transactions and other related services through a point of interaction, should also obtain prior BSP approval.
Persons or entities intending to provide services in the Philippines would generally be considered doing business in this jurisdiction and therefore, must also register and obtain a primary license from the SEC. This entails submission of documentary requirements with the SEC depending on the corporate vehicle (subsidiary or branch) intended to be established.
Additional comments regarding the legal situation for online-banking services or what FinTech’s must be aware of in this business area
N/A.
Economic conditions
Market size for online-banking services and biggest companies in this business area
There is a big potential for online banking services to grow more in the Philippines. Based on the 2020 Financial Inclusion Initiatives Report prepared by the BSP, 69% of adults own a mobile phone, but only 12% of mobile phone users use it for financial transactions, and 53% of adults use the internet, although 9% of internet users use it for financial transactions. In a document titled BSP Digital Payments Transformation Roadmap 2020-2023 as prepared by the BSP, the objective of BSP is to convert 50% of the total volume of retail payments into digital form and expand the financially included to 70% of Filipino adults, by onboarding them to the formal financial system through the use of payment or transaction accounts.
There does not appear to be a publicly available list of banks in the Philippines which have been granted the authority to engage in electronic banking (e-banking services) by the BSP. Based however on BSP’s website, there are only two banks which hold a digital bank license.
Additional comments regarding the economic situation for online-banking services or what FinTech’s must be aware of in this business area
N/A.