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Keisha Ta-Asan - The Philippine Star
June 19, 2025 | 12:00am
“We’ve received one application so far. It’s from a foreign entity based in Europe,” BSP Deputy Governor Chuchi Fonacier said.
Businessworld / File
MANILA, Philippines — A European digital bank has formally expressed interest in entering the Philippine market, making it the first to submit paperwork under the Bangko Sentral ng Pilipinas (BSP)’s reopened digital banking application window.
“We’ve received one application so far. It’s from a foreign entity based in Europe,” BSP Deputy Governor Chuchi Fonacier said.
“Others have only signaled interest, but have yet to submit the necessary documents,” she said.
The application is still in the initial stages, with the prospective player completing documentary requirements for evaluation. Fonacier declined to disclose further details, citing confidentiality protocols.
She said the new applicant offers a strong value proposition that targets gaps not yet addressed by the current digital banks, particularly in providing better services for the underbanked.
Among the unique features of the foreign digital bank is a proprietary solution that leverages alternative data to build more inclusive credit scoring models.
“This one has a way of capturing information, not necessarily from banks but from things like online purchases and personal transactions. That helps build a profile for creditworthiness,” she said.
Fonacier said the BSP’s Monetary Board only reopened the digital banking window for new applicants with a strong and differentiated value proposition, one that goes beyond standard digital offerings.
“The Monetary Board wants players that will address market gaps and offer something that the current six digital banks are not doing yet,” Fonacier said.
Earlier in January, the BSP lifted its moratorium on the issuance of new digital banking licenses, paving the way for up to four additional players. To apply for a digital bank license, whether for establishment or conversion, applicants must provide the necessary documentation and supporting information to the BSP.
Asked about the profitability of the existing six digital banks, Fonacier said only two have so far reported profits while others remain in the early stages of building operations.
“So far, we can see that it’s improving. Startups go through that process. They’re still establishing their presence. But prospects in the Philippines are better compared to other jurisdictions that already have six players,” she said.
The BSP capped digital bank licenses at six in 2021 but reopened the window this year with stricter evaluation criteria.
The regulator has said it remains open to applicants that demonstrate strong financial backing, cybersecurity resilience and solutions that promote digital and financial inclusion.
