Martha Sazon, CEO of GCash, told Bloomberg that the Filipino e-wallet is considering applying for a digital bank license after the Bangko Sentral ng Pilipinas (BSP) lifted its moratorium.

Last week, BSP announced that it will lift the moratorium on granting new digital banking licenses starting 1 January 2025.

This will allow up to ten digital banks to operate in the Philippines. Sazon emphasised that “nothing is definite at the moment.”

Since the introduction of the Digital Banking Framework in December 2020, six digital banks have been established, including Tonik, Maya Bank, Overseas Filipino Bank (OFBank), UNObank, UnionDigital Bank, and GoTyme Bank.

The new decision permits four additional licenses, available to both new applicants and existing banks seeking conversion.

Given the growing interest in digital banking, GCash’s potential move is not unprecedented.

This move could follow in the footsteps of GCash’s competitor, Maya, formerly known as PayMaya.

Maya initially started as an e-wallet before securing a digital banking license from the BSP and launching Maya Bank in April 2022.

Maya Bank has since garnered over 3 million users and was recently featured in Forbes’ 2024 list of the World’s Best Banks.

Earlier this month, GCash secured new strategic investments from Ayala Corporation and Mitsubishi UFJ Financial Group (MUFG), raising its valuation to US$5 billion.

The combined investment of US$800 million, a mix of secondary and primary funding, is one of the largest fintech investments in the Philippines.

Ayala, through its subsidiary AC Ventures Holdings, Inc. (ACV), will increase its stake in Mynt (GCash’s parent company) by acquiring an additional 8%.

Meanwhile, MUFG, through its subsidiary MUFG Bank, Ltd., will also acquire an 8% stake following binding agreements to invest in Mynt.

Sazon stated that the funds will largely be used to grow GCash’s lending business, which has already disbursed PHP 155 billion, marking a 73% year-on-year growth.

GCash currently has 5.4 million borrowers, with this number increasing by more than 70% year-on-year.

The lending business is primarily driven by GLoan, GCash’s fast and easy cash loan solution, allowing users to avail of loans up to PHP 125,000 instantly.

These loans focus on everyday, small-scale needs, differentiating GCash from traditional banks.

In addition to expanding its lending business, GCash plans to grow its payment services, which remain its core business.

The company also has ambitions for international expansion, currently having a presence in 17 countries, and aims to continue serving Filipinos abroad.

When asked about a potential IPO, Sazon remarked,

“The IPO is always on the table, but our priority right now is to sustainably grow the business.”

She added that GCash is closely monitoring market conditions before making any decisions regarding a public offering, without providing further details on the IPO framework.

To gain more insights into the digital banking landscape in Asia Pacific, watch our interview with Manu Panda, COO of Maya Bank, where he discusses their growth journey.

Featured image credit: Edited from Freepik