DIGITAL BANKING. Overseas Filipino Bank (OFBank) is one of the six Bangko Sentral ng Pilipinas-licensed digital banks in the country. It is the first government digital-only and branchless bank. (Photo from OFBank website)
MANILA – The Philippine digital banking sector already received more than USD700 million investments from global and local investors since 2021.
In a statement on Monday, the Digital Bank Association of the Philippines (DiBA PH) said the number of depositors also grew to 5.9 million as of end-2023 while deposits also rose to PHP69 billion from PHP35 billion in 2022.
DiBA PH said gross total loan portfolio also went up to almost PHP25 billion during the period from PHP11 billion in 2022.
“The significant and continued investment in the digital banking industry sector is a strong vote of confidence in its ability to stimulate economic growth, create jobs, and broaden access to savings and credit,” DiBA PH and Maya Bank President Angelo Madrid said.
Madrid added that as digital banks navigate the path to profitability while accelerating financial inclusion, strategic investments and capital play a crucial role.
He said the global digital banking industry norm shows a five to seven-year trajectory to break even.
"We see this as more than a financial endorsement from the global and local investment communities; it's a recognition of the sector's potential to drive economic inclusivity and innovation, setting a new standard for the future of banking in the Philippines," said Henry Aguda, trustee at DiBA PH and president and chief executive officer at UnionDigital Bank.
In 2021, the Bangko Sentral ng Pilipinas (BSP) created a new digital banking category to bolster financial services in the country and capped the entrants to six banks.
There are currently six BSP-licensed digital banks in the Philippines which include GoTyme Bank, Maya Bank, Overseas Filipino Bank (OF Bank), Tonik Digital Bank, UnionDigital Bank, and UNO Digital Bank.
“All our members have credible investors who are committed to growing the Philippine market in the long run. We all look forward to growing the industry as we stabilize the sector and scale up our various initiatives, including credit,” DiBA PH Trustee and GoTyme Bank president and CEO Nate Clarke said. (PNA)
