The Bangko Sentral ng Pilipinas (BSP) will resume accepting applications for the country’s digital banking license after three years, a move that opens up the industry to more players as it navigates the path to profitability. The number of slots for digital banking license applications available remains unclear, but BSP Governor Eli Remolona Jr. informed the Philippine Daily Inquirer that a circular on this matter will be released “soon.” This decision follows the BSP’s initial assessment of current players, including UNO Digital Bank, UnionDigital Bank, GoTyme, Overseas Filipino Bank of state-run Land Bank of the Philippines, Tonik Digital Bank, and…

Rizal Commercial Banking Corporation (RCBC) has introduced its latest vehicle loan product, the RCBC Auto Loan FlexiLite. According to Atty. Ramil de Villa, head of RCBC’s Consumer Lending Group (CLG), this offering is part of the bank’s strategic initiative to broaden its consumer lending portfolio and foster growth in the consumer sector. Ramil described the new product as a “breakthrough” in auto loans, highlighting about the RCBC Auto Loan FlexiLite, “Designed to provide unparalleled flexibility, this product allows customers to enjoy lower monthly amortizations without the need for a downpayment,” he said. The new RCBC auto loan product is set…

The Bangko Sentral ng Pilipinas (BSP) is set to introduce its Request to Pay (RTP) and Direct Debit facilities this year and next to advance the adoption of digital payments in the Philippines. BSP Deputy Governor Mamerto Tangonan, in a recent press briefing, announced that the central bank aims to launch the RTP Cash-in Service in the latter half of this year. This service will enable e-money users to top up their accounts using any bank or e-wallet platforms seamlessly. Deputy Governor Tangonan also revealed plans for a second RTP use-case for e-commerce, scheduled for release next year. He noted…

The Bangko Sentral ng Pilipinas (BSP) is progressing towards issuing its own central bank digital currency (CBDC), codenamed Project Agila, sooner than anticipated, with the proof-of-concept phase expected to conclude by the end of this year. BSP Deputy Governor Mamerto E. Tangonan confirmed that the CBDC could likely be launched in the earlier part of BSP Governor Eli M. Remolona Jr.’s six-year term, which runs from 2023 until 2029. “The governor is very early in his term and we’re already about to conclude proof of concept,” he stated. Deputy Governor Tangonan emphasised the importance of ensuring the usability and management…

GCash, the mobile wallet of Globe Telecom Inc., has joined forces with Taptap Send and other international partners to enhance financial transactions for Filipinos both locally and abroad. The collaboration with Taptap Send, an app specifically designed for Overseas Filipino Workers (OFWs) in the UAE, the UK, the US, Canada, and select European countries, aims to provide quick, affordable, and secure money transfers. Taptap Send claims it offers zero transaction fees and competitive exchange rates for those remitting money back to the Philippines. Oscar Ren-Ren Reyes, president and chief executive of G-Xchange Inc., the operator of GCash, emphasised the importance…

The financial sector is on the edge of a major transformation powered by continuous technological advancements. At the recent Huawei HiFS Frontier Forum 2024 in Shenzhen, industry leaders discussed how cloud, network, storage, and computing infrastructures can strengthen financial systems’ resilience. The forum’s theme, “Boost Resilience, Reshaping Smarter Finance Together,” encapsulates the industry’s collective ambition to navigate the challenges of an uncertain future through technological excellence and collaborative innovation. This gathering comes at a pivotal moment. Traditional banking boundaries are dissolving, and the definition of financial services is evolving unprecedentedly. The imperative for digital transformation As we hurtle towards 2030,…

The Bangko Sentral ng Pilipinas (BSP) has reported a significant rise in the share of digital payment transactions to total monthly retail payments in the Philippines, increasing from 42.1% in 2022 to 52.8% in 2023, according to its 2023 Report on E-Payments Measurement. This growth in digital transactions aligns with the BSP goal of digitalising 50% of payment volumes under its Digital Payments Transformation Roadmap 2018-2023. “We take pride in this achievement as proof that our pursuit of a cash-lite economy has consistently been progressing. We owe this to our citizens who are the foremost beneficiaries of a safe, efficient,…

The Bangko Sentral ng Pilipinas (BSP) has fully automated the Intraday Settlement Facility (ISF) for financial institutions, targeting to expedite transactions and resolve timing mismatches. This digital advancement was achieved in collaboration with the Bureau of the Treasury (BTr), and aims to enhance the efficiency of the Peso Real-Time Gross Settlement (RTGS) Payment System operated by the BSP. The central bank and the Bureau of the Treasury launched the fully automated ISF last month, making it available to all eligible financial institutions facing timing mismatches, when settling transactions through the BSP-operated Peso Real-Time Gross Settlement (RTGS) Payment System. This new…

The Securities and Exchange Commission (SEC) remains optimistic about digital crowdfunding platforms despite recent setbacks. SEC chairperson Emilio Aquino acknowledged the challenges, stating to the media, “We experienced birth pains. That’s the same case for the other jurisdictions like Indonesia and Malaysia. It’s the same. So we’re sorting it out but that does not mean that we’re closing the doors as far as the use of digital platforms are concerned.” The SEC has been advocating for crowdfunding as an accessible and viable capital-raising option for micro, small, and medium enterprises (MSMEs) and startups to facilitate business expansion. Crowdfunding, a fundraising…

The Bangko Sentral ng Pilipinas (BSP) has introduced a new regulatory framework for merchant payment acceptance activities (MPAA) to expand the use of digital payments across the country. This move is encapsulated in BSP Circular No. 1198 that was approved on July 19. Merchants, defined as physical or electronic retailers, service providers, billers, and businesses accepting payments for goods and services, are now classified as end-users who avail of MPAA. These activities encompass services that enable merchants to receive payments, including merchant acquisition services, which involve processing payment transactions and transferring funds to the merchant. The BSP framework emphasises the…

GoTyme Bank has announced that it has booked deposits totalling P17.3 billion, driven by a significant increase in new customers. The digital bank has reached 3.7 million customers by the end of June, adding 1.7 million new users since the end of 2023 amidst an increase in monthly transactions. According to the bank, monthly transactions have surged by 600% in the first half of the year, resulting in over 250,000 new customers each month. Nathaniel D. Clarke, President and Chief Executive Officer of GoTyme Bank, stated of the deposits hike as well as the bank’s overall growth, “We want to…

The Bangko Sentral ng Pilipinas (BSP) has endorsed the recent passage of Republic Act No. 12010, also known as the Anti-Financial Account Scamming Act (AFASA), which is designed to combat financial cybercrimes, protect the interests of financial consumers, and maintain the integrity of the financial system. “We express our full support for the new anti-financial account scamming law. This will help us strengthen consumer protection and foster trust and confidence in the Philippine financial system,” stated BSP Governor Eli M. Remolona, Jr. AFASA, formally titled “An Act Defining and Penalizing Financial Account Scamming and Other Offences, and Providing for the…

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UnionDigital Bank has announced that its board has accepted the resignation of Henry Aguda as president and chief executive, effective from 1 August 2024. Henry will be succeeded by Danilo Mojica II, who currently serves as a director on the UnionDigital Bank board. Danilo, known as Bong, brings with him extensive experience, having over 35 years of local and international C-level corporate and consulting experience across various fields and industries, including fast-moving consumer goods, airlines, telecommunications, financial services, and financial technologies. Justo Ortiz, chairman of the UnionDigital board of directors, expressed respect for Henry’s decision to pursue opportunities more aligned…

Rizal Commercial Banking Corporation (RCBC) has announced a new collaboration with FastPay, a mobile remittance app operating exclusively in Taiwan. This partnership allows overseas Filipino workers (OFWs) in Taiwan to send money directly to their loved ones’ RCBC bank accounts or other Philippine bank accounts. Beneficiaries can also collect remittances in cash from over 17,000 RCBC pay-out partner outlets across the Philippines. Martin Tirol, head of RCBC’s Global Transaction Banking Group, noted that the collaboration with FastPay aligns with the bank’s commitment to supporting OFWs by providing more convenient remittance options. “Knowing that Taiwan is a great place of opportunities…

The Bangko Sentral ng Pilipinas (BSP) has approved applications for five regular bank branches and 23 branch-lite units in the first quarter of 2024. This number is lower than the previous year’s first quarter, which saw the approval of three regular branches and seventy-five branch-lite units. Regular branches are full-sized banks offering complete banking services, whereas branch-lite units provide a wide range of products and services but with limited banking activities, not catering to clients with aggressive risk tolerance. The central bank is now favouring streamlined branch-lite units offering limited banking services. This is due to the knock-on effect caused…

Veteran banker Walter C. Wassmer has been appointed by President Ferdinand R. Marcos, Jr. as a member of the Bangko Sentral ng Pilipinas’ (BSP) Monetary Board, the central bank’s policy-rate-setting panel. Joining BSP Governor and Monetary Board Chairman Eli M. Remolona, Jr., Department of Finance Secretary Ralph G. Recto, and Monetary Board members Benjamin E. Diokno, Romeo L. Bernardo, and Rosalia V. De Leon, Walter Wassmer will bring his extensive private sector banking expertise to the BSP’s highest policy-making body. Walter will serve the remaining term of former Monetary Board member V. Bruce J. Tolentino until July 2026. Bruce resigned…

In the Philippines, real-time payments have experienced considerable growth in recent years. In 2023, instant payments accounted for 47.2% of all electronic payments, up from 40.3% in 2022 and 24.7% in 2020, according to a report by ACI Worldwide, an American payment systems company. By 2028, real-time payments are projected to grow to constitute 58.7% of cashless transactions, rising at a compound annual growth rate (CAGR) of 14.6% between 2023 and 2028. The “2024 Prime Time for Real-Time” report, released on April 30, provides insight into real-time payments’ progress in 51 countries. It highlights continued growth in the Philippines, with…

Tonik Financial, the parent company of the Philippines-based digital lender Tonik Digital Bank, reported reduced year-on-year losses in 2023, though customer deposits decreased during the same period, according to regulatory filings. In its annual return filed with Singapore’s Accounting and Corporate Regulatory Authority (ACRA), Tonik Financial stated that its interest income more than tripled to US$19.8 million in the financial year ending December 31, 2023, from US$6.2 million the previous year. The company also reduced its total comprehensive loss for the year to US$29.3 million from US$37.6 million in 2022. Despite the growth in interest income, Tonik Financial experienced a roughly…

The Philippines’ central bank, Bangko Sentral ng Pilipas (BSP) issued a warning last week, urging citizens to exercise greater caution regarding crypto scams proliferating on social media. It clarified that BSP Governor Eli Remolona, Jr. does not endorse the alleged crypto project “Tesler Code” or any other crypto investment. The central bank highlighted that scammers are leveraging AI-manipulated videos on social media to spread misinformation. These deepfakes target organisations such as the central bank and its officials, as well as other public figures, to lend credibility to their scams. To safeguard against crypto scams and others, the BSP advised the…