15-07-2025
BSP wants level playing field among digital banks, 'digital-centric banks
The Bangko Sentral ng Pilipinas (BSP) is working on establishing guidelines that seek to level the playing field among digital banks and 'digital-centric' conventional banks aimed to be released in the next few months, a top official said Tuesday.
According to BSP Deputy Governor Chuchi Fonacier, the BSP is now crafting the guidelines on the assessment of the level of digital centricity of thrift banks, rural banks, and cooperative banks.
'It aims to establish the indicators that will be considered in assessing the level of digital centricity of said banks, among others, to ensure proportionate application of said prudential requirements,' she said in her keynote speech during the Chamber of Thrift Banks Convention.
'This will be subject to a phased implementation of higher regulatory standards or requirements applicable to a digital bank, as determined by BSP. This approach promotes a level playing field and ensures consistent application of regulatory requirements and expectations between digital banks and digital-centric banks,' she added.
Sought for more details, Fonacier said there should be a level playing field among digital banks and thrift, rural, and cooperative banks that are digitally centric.
'We just want to provide a level playing field kasi di ba (because) there are digital banks, and there are also digital-centric conventional banks, meaning the business model is digitally centric,' she told reporters in Makati City.
'We need to level the playing field, that's why we also would require some more, let's say, capital from those doing that,' she added.
At present, the BSP allows up to 10 digital banks — defined as banks that offer financial products and services that are processed end-to-end through a digital platform and/or electronic channels with no physical branches — to operate in the country.
To qualify, banks must meet the minimum capitalization of P1 billion, and will have to follow all the fiduciary rules imposed on other bank categories.
It has so far granted licenses to six digital banks — GOTyme, Maya Bank, Overseas Filipino Bank (OFBank), Tonik Bank of Singapore, UNObank of Singapore, and UnionDigital of the Union Bank of the Philippines.
Two additional banks have also signified their intent to convert or enter as digital banks — one operating rural bank, and another European financial institution.
Fonacier on Tuesday said the BSP is also preparing guidance on the ethical use of artificial intelligence (AI) in the financial sector, also targeted to be released within the year.
'While AI is being embedded in the financial system, financial institutions should be alert when it comes to upholding data privacy, and confidentiality of data control,' she said.
'This will cover key areas such as ethical AI deployment, continuous improvement in AI's accuracy when making financial decisions, and rigorous management of algorithmic bias,' she added. — BAP, GMA Integrated News
