(File photo)
MANILA – The Bangko Sentral ng Pilipinas (BSP) said 8.7 million deposit accounts have already been signed up with digital banks.
BSP Director Melchor Plabasan said in a press chat Wednesday these deposit accounts were registered with six digital banks operating in the country, which represent 7 percent of the total Philippine banks.
Plabasan said two out of the six digital banks are currently recording profits from their operations.
“There are two among the six banks that are profitable, but the expectation is that it would take around five to seven years before a digital bank becomes profitable,” he said.
He added that these figures are aligned with the global numbers, as only 5 percent of digital banks across the world are registering profits.
“So, we are expecting that there will be losses, but we don't expect that some will be out of the red already, probably even before the five to seven years,” Plabasan said.
The BSP is expected to release an industry report next month on the performance of digital banks in the country.
“Essentially we are looking at first the impact of these digital banks to the overall financial system and in terms of their contribution to our financial institutions,” Plabasan said.
Meanwhile, BSP Governor Eli Remolona Jr. said the central bank is looking into opening up the sector by issuing more licenses for digital bank operations.
“We're trying to figure out how the new licenses will help with the new digital bank that has a different business model that has to be tested in the Philippines. Usually, they've been tested abroad. Whether this business model will also work in the Philippines,” Remolona said. (PNA)
