The Circular considers digital bank as a distinct classification of bank and provides the framework for its operation and establishment.
The guidelines set out the for the establishment of digital bank include the following:
a digital bank is defined as a bank which offers financial products and services that are processed end-to-end through a digital platform and/or electronic channels with no physical branch, sub-branch or branch-lite unit offering financial products and services;
digital banks are required to maintain a principal or head office in the Philippines to serve as the main point of contact for stakeholders, including the BSP and other regulators;
digital banks are required to have a minimum capitalisation of PHP 1 billion;
digital banks are subject to the prudential requirements set out by the BSP, including corporate governance and risk management, particularly on information technology and cyber security, outsourcing, consumer protection and anti-money laundering and combating the financing of terrorism under existing regulations;
digital banks may offer financial products and services through cash agents and other qualified service providers subject to the guidelines under the MORB.
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