BSP Highlights Role of Digital Banks as Key Financial Inclusion Enablerby Fintech News Philippines March 29, 2021
The Bangko Sentral ng Pilipinas (BSP) considers the digital banking framework as a key building block in promoting financial inclusion.
The framework aims to enable a regulatory environment that fosters responsible innovation, promotes cyber resilience, and expand the digitalisation of the financial sector.
Issued in December last year, the BSP’s “Guidelines on Establishment of Digital Banks” defines a digital bank as a financial entity, categorised as a bank, offering financial products and services that are processed end-to-end through a digital platform or electronic channels with no physical branch offering financial products and services.
Nonetheless, digital banks are expected to have sound digital governance; robust, secure and resilient technology infrastructure; and effective data management strategy and practices.
Moreover, digital banks are subject to the same prudential requirements applicable to other types of banks, including corporate governance, risk management, compliance, internal control and audit, and reporting governance.
In his speech during the SAP Virtual Roundtable recently, Benjamin E. Diokno Governor of BSP said,
“For the Philippines, digital banking or digital finance in general as a strategy is not so much about being ahead of the curve.
It is more about capitalising on its gains to bring about a more inclusive financial ecosystem.”