While several digital banks are interested in securing banking licenses from the Bangko Sentral ng Pilipinas (BSP), only one foreign digital bank has formally submitted an application, offering to plug the credit scoring and other gaps in existing entities.

BSP Deputy Governor Chuchi G. Fonacier told reporters on the sidelines of the ceremonial launch of the Protect Your Money (PYM) campaign on Tuesday, June 17, that “there’s only one” digital bank that has proceeded to process the requirements necessary to secure a digital banking license.

“As far as I know, there’s only one—because the others are just expressions of interest. But this one, they really have the requirements that need to be completed,” Fonacier, who handles the central bank’s financial supervision sector, said.

According to Fonacier, this applicant is a European digital bank that “already did the paperwork, but there are some that are still lacking in the documentary requirements.”

“It’s still in the initial stage. There are requirements that need to be hurdled,” Fonacier said.

Earlier this year, Fonacier said that among the major considerations of the central bank in the search for new players is the “unique and very good value proposition” not being offered by the six existing digital banks.

Among the major gaps identified by the central bank that the European digital bank aims to address are issues related to micro, small, and medium enterprises (MSMEs) and credit scoring.

Out of the six existing licensed digital banks, only two have so far registered profits, while the others are still in the early stages of operations, Fonacier noted, adding that this trend is expected, as startups typically go through a build-up phase to establish their presence and customer base.

On the other hand, she said that the prospects for digital banks in the country appear more promising compared to other markets with the same number of players.

Currently, six digital banks have been granted digital banking licenses by the BSP, including Maya Bank, UnionDigital Bank, Overseas Filipino Bank, Tonik Digital Bank, UNObank, and GOtyme.

At the start of the year, the BSP lifted the ban on new digital banking licenses in the Philippines, opening up opportunities for new players to enter the sector.