MANILA - Digital banking is helping the Philippines achieve its financial inclusion goal which is essential to economic growth, the Bangko Sentral ng Pilipinas said Wednesday.
The BSP earlier released a digital banking framework that set a distinct classification and has paved the way for purely digital banks to operate in the country.
Digital banks have no physical branches. All transactions, including on-boarding and opening of accounts, are done online.
“Like an automobile bringing passengers to their desired destinations, the Digital Banking Framework contributes to transporting the country to greater financial inclusion and to further realization of a well-oiled financial system in the Philippines,” BSP Gov. Benjamin Diokno said in a webinar.
The measure promotes innovations, cyber resilience and boosts digitalization of the financial sector, the central bank said.
A "sound" digital governance, secure and resilient technology infrastructure and effective data management strategy should guide the digital-centric financial business model, the BSP said.
So far, the Monetary Board has approved digital bank licenses to Landbank's Overseas Filipino Bank (OFBank), Tonik Bank, UNOBank and most recently UnionBank.
Diokno earlier said several other groups have filed an application to establish a digital bank including the Gokongwei group.
The BSP's goal is to increase digital payments to 50 percent and to encourage 70 percent of the population to have their own bank accounts by 2023.
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