BSP to Shortlist New Philippines Digital Bank Candidates by Q1 2026

The Philippines Central Bank (BSP) is preparing to draw up a shortlist of contenders for four new digital banking licences, a development expected to introduce fresh competition to the country’s financial sector.

BSP Deputy Governor Lyn Javier, who heads the department regulating banks, confirmed that the central bank has commenced its review of applications.

Javier indicated that the regulator aims to select candidates for recommendation to the Monetary Board within the first quarter of the year.

The central bank received three applications prior to the deadline late last year, though Javier declined to disclose whether these included foreign firms.

The BSP reopened the application window in 2025 to expand the digital banking sector, currently limited to six players, including UNO Digital Bank, UnionDigital Bank, GoTyme, Tonik Digital Bank, Maya Bank, and the state-run Overseas Filipino Bank, following the lifting of a three-year moratorium.

To secure one of the four available licences, applicants must demonstrate the capacity to offer a unique value proposition or an innovative business model distinct from existing players.

This is in addition to meeting the minimum capitalisation requirement of P1 billion.

Fitch Ratings previously noted that the entry of new digital banks would likely intensify competition for funding as they aggressively raise deposits.

However, the credit rating agency predicts the immediate impact on the broader banking industry will be “modest,” given that new entrants are expected to remain relatively small in the near term.

According to BSP data, digital banks held total deposits of PHP 119.5 billion and served a combined 20.4 million customers as of September 2025.

Featured image by leungchopan via Freepik.

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