MANILA - The Bangko Sentral ng Pilipinas said digital banks would expand small and medium enterprises' access to financial services as 3 new neobanks are expected to launch services this year.
With the new form of banking, the BSP said MSMEs will have more access to credit through "mobile-friendly" lending and investment facilities, the BSP said in a statement.
Using digital banks, records of sales and payment transactions can also be used to assess the creditworthiness of MSME borrowers, the central bank said.
“By offering convenient and affordable financial products tailored to the needs of MSMEs, digital banks can accelerate financial inclusion in the country,” BSP Governor Benjamin E. Diokno said.
“The BSP remains committed to fostering a regulatory environment that is supportive of financial innovations while promoting healthy competition in the financial system,” he added.
In 2021, the BSP has granted 6 digital banking licenses. Digital banks have no physical branches with transactions completed entirely on a digital platform.
Among the 6 digital banks, the Landbank's Overseas Filipino (OF) Bank and Tonik Bank have already been operational.
UnionBank's UnionDigital, UnoBank backed by a Singapore-headquartered fintech firm, the Gokongwei Group's GoTyme and PayMaya's Maya Bank meanwhile are eyeing to launch their services this year, the BSP said.
Aside from boosting financial inclusion through easier and cheaper on-boarding processes, Diokno earlier said digital banks could drive a "tech-savvy" economy. [DRIVE https://news.abs-cbn.com/business/11/03/21/digital-banks-to-help-drive-economic-recovery-says-bsp]
Digital banks will also push the BSP's Digital Transformation Roadmap, which aims to digitalize at least 50 percent of retail payments and onboard at least 70 percent of Filipino adults into the formal financial system by 2023.