Fintech News Philippines:

Philippines Fintech Report 2022

 Foreword
Christian König – Founder, Fintech News Network

The Philippines continues to be fertile ground for fintech growth, fuelled by progressive
regulators, an increasingly digital population and hungry entrepreneurs eager to build a
better world.

The year 2021 marked several important milestones for the Philippines fintech
ecosystem that included record-breaking fundraising rounds which gave birth to the first
Filipino fintech unicorn, GCash.

With more and more success stories emerging from the ecosystem, it will no doubt fuel more VC interest and investor
confidence in Filipino startups succeeding not only locally but in the global arena as well.

We are certain 2022 will continue to be a blockbuster year for the fintech ecosystem in the Philippines.

We hope that Fintech News Philippines will continue to play the role of providing the latest insights and stories to the
community in the years to come.

Christian König
Founder, Fintech News Network
Foreword
Lito Villanueva – Chairman, Fintech Alliance.ph

Digitalization became the lifeline of our economy.

We have witnessed the massive adoption of digital payments and transactions by Filipinos. More than 90 percent of
these have been facilitated by digital products and services offered by Alliance members. As the national government
eases quarantine restrictions and the economy slowly recovering, the challenge now for the industry is to sustain this
growth in digital adoption, and to ensure that our next innovations are truly future-ready and pandemic-proof. The
industry must also be ready in keeping the digital space competitive but at the same time synergistic.
The year 2022 will definitely be an era of massive “coopetition.” As we strive to keep our own financial institutions
profitable, we also have to remember that we are working towards a common goal of realizing the twin goals of digital
acceleration and financial inclusion. This will only be possible if fintech players, regulators, institutions, and other
stakeholders continue to work hand-in-hand in giving the best inclusive digital finance solutions to Filipinos, delivering
delightful customer experience.

In the end, we push for a sustainable digital Philippines and create more meaningful engagements with the public we serve, accompanying them in their
journey towards shared prosperity. May this edition of the Philippines FinTech Report serve not only as an important reference material to understand the
current digital finance landscape of the country, but also as a source of inspiration for the industry to continue breaking the barriers to financial inclusion.
Finally, after we have pioneered the institutionalization of the Code of Conduct and Code of Ethics in the Philippine fintech and digital industry in 2019, we are
again blazing the trail with the adoption of the Customer Centricity Code which was introduced during the FinEd Expo of the Bangko Sentral ng Pilipinas.

To more exciting adventures ahead,

LITO VILLANUEVA
Founding Chairman, FinTech Alliance.PH
Foreword
Benjamin E. Diokno – Governor, Bangko Sentral ng Pilipinas

The Bangko Sentral ng Pilipinas (BSP) congratulates the Fintech Alliance.ph on the publication of the Fintech
Philippines Report, which provides a comprehensive snapshot of the country’s rapidly growing fintech landscape.
As central bank governor, I have made it my personal mission to push for financial inclusion and reach Filipinos outside
of the formal financial system – and digitalization offers a clear way to achieve this goal. Under our Digital Payments
Transformation Roadmap for 2020-2023, we set out to achieve two main goals: digitize at least half of all retail
transactions and have 70% of Filipino adults in possession of a transaction account. We have made significant
progress on the payments front, with one in five payments (20.1%) now digital from a mere 1% in 2013.
We recognize that access to affordable financial services opens opportunities to move up in life. We have seen how
countries with deeper and more developed financial systems enjoy a brand of growth marked by larger reductions in
poverty and income inequality. Through its potential to reduce cost and increase speed, security, and transparency,
digital financial services can allow us to serve the poor at a greater scale.

But while we recognize the promise of digital technologies in addressing real-world problems, we recognize its attendant risks. As such, the BSP is committed
to fostering an enabling regulatory environment that fosters digital innovation and adoption while safeguarding effective risk management.
The digital transformation of the financial services industry is not limited to payments but applies to a wider range of financial transactions. Through sustained
engagement with industry players and proactive reforms, we hope to sustain this momentum as part of our efforts to build an ecosystem that puts the
underbanked and underserved at the heart and center of what we do.
We are thankful for the support of FintechAlliance.ph in our journey to make finance for all a reality and build a stronger and more inclusive economy. Again,
congratulations on the publication of the Fintech Philippines report!
Foreword
Emilio B. Aquino – Chairman, Securities Exchange Commission

I would like to express my congratulations to the FinTech Alliance.ph, the premier trade organization among fintech and
digital players in the Philippines, for the publication of the 2022 edition of the Fintech Philippines Report.
With the fintech market in the Philippines steadily evolving, the Securities and Exchange Commission (SEC) continues
to create a liberal and open regulatory regime to optimize financial technology and help emerging fintech enterprises
thrive, all towards the goal of engendering financial inclusion for a population that is largely unbanked or underserved
by traditional financial institutions. The SEC has established the PhiliFintech Innovation Office, which serves as the first
point of contact for fintech firms applying for registration, or existing ones introducing new fintech products and which
need assistance in navigating the SEC’s regulatory landscape. We are also coordinating with multiple government
agencies to work together in ensuring that fintech companies in the country are properly regulated while encouraging
their growth and continued innovation.

The Fintech Philippines Report, which aims to provide a comprehensive overview of the state of fintech and digital financial services in the country, as well as
what it will take to propel it further for the betterment of the Filipinos towards greater financial inclusion, is well attuned with the SEC’s goal of inclusive
financing among our countrymen and is a welcome initiative from our fintech and digital players.
FinTech Alliance.ph, I wish you continued success in your endeavors! Thank you very much at Mabuhay kayo!
Foreword
Dennis B. Funa – Insurance Commissioner

It is with great pleasure that I extend my earnest felicitations to the FinTech Alliance.ph for the success in publishing its
Fintech Philippines Report 2022.
Providing a comprehensive overview of the state of fintech and digital financial services in our country, this publication
clearly defines our current position in terms of technology and innovation. l trust that this report will serve its purpose as
a valuable source of knowledge and information for our industry leaders and professionals.
Keeping tabs on the current trends and technological innovations of our time will help the insurance, pre-need, and
HMO industries to further improve their services to the people. On the same note, lnsurance Commission could also
utilize the information presented in this report to better understand the financial technologies available in the market
and how they could affect the industries we supervise, thus providing an opportunity to better our regulatory regime and
policy-making functions.

Financial technologies had evolved into unimaginable extent, changing and reshaping the financial landscape in which we operate. As we venture into an era
of digital and data-driven transactions, we are grateful that the Commission enjoys the support and cooperation of FinTech Alliance.ph in fostering financial
inclusion among the Filipino people.
Once again, congratulations and looking forward for the success of your endeavors.
Foreword
Raymund E. Liboro – Commissioner, National Privacy Commission

On behalf of the National Privacy Commission, I would like to commend the efforts of the Fintech Alliance PH and the
Fintech News Philippines in coming up with the 2022 Fintech Philippines Report.
We, at the National Privacy Commission always strive to build resilience in the financial sector especially when it comes
to complying and adopting measures to ensure data protection. By building the resilience of the financial sector, we aim
to capacitate the fintech and digital financial industry so they can readily respond to any threats that may compromise
the confidentiality, integrity and availability of personal information in the financial sector. This approach resonates in the
projects developed by the Commission especially for the fintech and digital financial industry.
From the onset, the Commission believes that effective regulation is a responsible, flexible and agile approach in the
application of the DPA. We wear as many hats as possible depending on the circumstances.
We are leaders and enablers, especially to those who try to operationalize data privacy, lending our full support to our
stakeholders whose initiatives culminate in the best practices of data privacy and protection.

I am sure that the 2022 Fintech Philippines Report would provide us with deeper insights into the state of the fintech and digital financial industry, ensuring
timely response and development of innovative tools and technologies that maximize the uses of data. We hope that these technologies also drive financial
inclusion and economic recovery.
In this regard, I would also like to thank the Fintech Alliance PH, for giving the Commission an opportunity to propound questions for these exercise and look
forward to gaining insights from the responses for us to develop a more comprehensive and responsive regulatory approach.
With this, let me take this opportunity to assure the fintech and digital financial industry that the Commission shall ever be ready to extend our helping hand
not only as a regulator but a partner in building consumer trust.

Raymund E. Liboro
Commissioner, National Privacy Commission
Foreword
Atty. Ben Joshua A .Baltazar – President, Credit Information Corporation

Even before the Covid-19 virus ravaged the entire world, Financial Technology or “FinTech” was already known to be
the key in unlocking the full potential of the Philippine Economy and shepherd in the elusive twin goals of sustainable
economic development and financial inclusion.
With our population getting younger and digital savviness rising at a rapid clip, technology has undoubtedly bridged the
gap on geographic, social and economic fronts. Unfortunately, over the past decade, much of these gains have been
overshadowed by the Philippines’ notoriety as the “Social Media Capital of the World”.
We hope in the coming years, through the efforts of the Philippine Government and partners such as the FinTech
Alliance, we can shine a brighter light on the positive developments that have been undertaken in the field of FinTech
and transform our collective identity from that hollow epithet into being the “World’s First Inclusive Digital Economy.”
The Credit Information Corporation (CIC), as the Government’s own FinTech Corporation, strongly supports the
publication of FinTech Alliance’s upcoming 2021 FinTech Philippines Report.

As the country’s sole public credit registry currently hosting the credit data of over 30 million Filipinos and interfacing with thousands of covered entities
through the use of technology, the relevance of the findings and recommendations in the report to its mandate are all too clear. We look forward to studying
the report and ensuring both policy alignment and effectiveness in this vital intersection of technology, finance and development.
We wish the FinTech Alliance all the success in their upcoming 2022 FinTech Philippines Report and all its future endeavors.
Mabuhay po kayo!

Atty. Ben Joshua A .Baltazar

President, Credit Information Corporation
 Contents

1. Philippines at a Glance
2. Philippines’ Fintech Landscape
3. Digital Payments
4. Cryptocurrency
5. Digital Banking
6. Key Regulation Milestones
7. Key Industry Developments

Photo by Mari Gimenez on Unsplash

 01 Philippines at a Glance
The Philippines’ flourishing growth in banking and connectivity

Philippines in Numbers

-9.6% 108M 80.1M (+8.6%) 74.1%

GDP Growth (2020) Total population (2020) Number of deposit accounts 2020 Smartphone penetration
Q4 (Growth from 2019 Q4) (2021)

4.5% 47.4% 22,778 (+4.6%)

GDP forecast (2021) Urban population Number of ATMs 2020 Q4 (Growth
79.7M
from 2019 Q4) Number of Internet users
2020
US$3,299 30M
GDP Per Capita (2020) Filipinos aged 10-24 29.1 (+136.6%)
Number of access points per 10,000
adults 2020 Q4 (Growth from 2019
94%
4G Coverage 2019
4.1% 6M Q4)
Inflation forecast 2021 Number of micro-enterprise
27 72.1%
Number of banks with digital Mobile internet user
onboarding capability 2020 Q4
penetration 2020
Sources: Asian Development Bank (ADB), World Bank, latest Financial Inclusion Survey (2020 Q4), Statista
*Mobile broadband connections - number of sim cards that are 3G and above (as percentage of total population)
 02 Philippines’ Fintech Landscape
Philippines Fintech Map 2022

Crowdfunding Proptech
Wealthtech Digital Banking 1%
2% 1%
4%

KYC/ Regtech
4% Lending
27%
Insurtech
4%

Remittance
12%

Blockchain/
Cryptocurrency
12%
Payment
20%
E-wallet
13%

Sources: Fintech News Philippines

 02 Philippines’ Fintech Landscape
Philippines Fintech Map 2022 Total: 216 Fintech Companies
Payment (51) Remittance (29)

E-wallet (29) Lending (65)*

Crowdfunding (3)

Blockchain/ Cryptocurrency (28) Digital Banks (6) Proptech (3)

Insurtech (10) KYC/ Regtech (11) Digital-centric Banks (5)

Wealthtech (9)

Notes: (1) The 65 mentioned lending fintech players operate fully-digital lending process. Other lending startups with limited online presence or inactive startups are excluded in the map. (2) Some
companies appear in more than 1 category to better reflect the nature of their businesses, but they still count as one towards the total. Source: Fintech News Philippines
 03 Philippines Payments
Developments of Digital Payments

PhilSys The government has played a

Nov 2019
The National QR Code
Standard dubbed “QR Ph”
was launched, with
the Person-to-Person (P2P)
use case, which enables
digital fund transfers
between individual end-
users.
critical role in driving digital
Oct 2020
Jun 2021 Oct 2021
payments with the advancement
The Philippine Identification of policies and initiatives
With 38 million users June
System Act was enforced. Person to-Merchant (P2M) towards payment developments.
2021, doubled in 18
The government has use case of “QR Ph” was fully All of these set the stage for a
months, Voyager
collected over 37 million launched, following the strong and more inclusive digital
Innovations, the company
Filipinos for the national ID success of its pilot launch in payment ecosystem. COVID-19
behind PayMaya, raised
(PhilSys) by Jul 2021, close April. The scheme allows has accelerated the adoption of
US$167 million as it gears
to its 50-70 million by end- merchants with participating digital payments.
up for digital bank.
2021. banks to transact via InstaPay.

2019 2020

Oct 2020 Sep 2021

Nov 2019
Dubbed as the next-generation peso
EGov Pay digitises payment
real-time gross settlement (RTGS)
collections and
system, PhilPaSS-plus, which
disbursements between
conforms to SWIFT-prescribed ISO
government and individuals.
20022 format, goes live in the
90% of government billers
Philippines. It is able to settle larger
are captured by 2021
volume of financial transactions of
varying types and complexities.
Nov 2021
Both InstaPay and PESONet fund
Mynt, the financial technology
transfers have registered significant
firm behind the GCash
growth in terms of transaction value
payments platform, has
for the first 7 months of 2021.
attained “double unicorn”
PESONet and InstaPay to process
status with a US$300-million
electronic payment transactions
fresh equity deal that valued
between BSFIs ¹ and later non-
the company at over $2 billion.
BSFIs such as e-wallets

PhilPaSS-plus
Notes: (1) BSFIs refer to BSP Supervised Financial Institutions.
 03 Philippines Payments
Digital Payments Statistics

Share of digital payments to total payment Active e-money accounts Total amount of
transactions 40 e-money transactions
3,000
93%
35
14% 20% 34.7
2,500 62%
30 2,410

Value (local currency, billion)

2019 2020
(Volume) (Volume) 25 2,000

Volume (million)
20 36%
258% 1,500
1,485
24% 17.9
27%
15 13%
1,000 1,090
963
10
2019 2020
(Value) (Value)
127% 500
5
5
2.2
0 0
2017 2018 2019 2020 2017 2018 2019 2020
Source: Bangko Sentral ng Pilipinas (BSP)
 03 Philippines Payments
PESONet and InstaPay enables contactless financial transactions
The COVID-19 pandemic and movement restrictions compelled Filipino consumers to shift from cash to digital payments, and the use of digital platforms for fund transfers,
InstaPay, and PESONet has increased tremendously.

The PESONet and InstaPay are automated clearing houses under the National Retail Payments System. PESONet is a batch of electronic fund transfer (EFT), which can be
considered as an electronic alternative to the paper-based check system. On the other hand, InstaPay is a real-time, low value EFT for transaction amounting up to ₱50,000, which
is useful for e-commerce.

3,000 40 1,400 250

204% 2,791 35 37 378% 233

2,500 122% 1,200 1,237 583%
Value (local currency, billion)

Value (local currency, billion)

1,151 200
30 32 201
Volume (million) 1,000

Volume (million)
2,000
1,983 25 150
800
1,500 20
600
1,259 15 100
1,000
400
10 12
50
500 200 259
5
34

0 0 0 0
2019 2020 1H 2021 2019 2020 1H 2021 2019 2020 1H 2021 2019 2020 1H 2021

Source: Bangko Sentral ng Pilipinas (BSP)

 03 Philippines Payments
BSP’s Digital Payments Transformation Roadmap 2020-2023

Digital
Payment
Streams Payments to merchants (P2M) Periodic utility payments (P2B) Remittances (P2P) Social benefit transfers (G2P)
Vision & Objectives Direct Debit via Batch EFT Credit ACH, Multiple batch net
QR Ph P2M via InstaPay, Zero Use of digital payments in
by 2023 fees on micro transactions
Bills Pay via Real Time Low Value EFT
Credit Automated Clearing House (ACH)
settlement (MBNS) of
PESONet transfers
COVID-19 support and wages

50% of total retail transaction

volume is digital; 70% of
Filipino adults are financially
Digital
included
Finance
Infrastructure Philippine Identification Card PhilPaSS-plus Open Banking Digital-enabled Credit
Innovation-driven use of (PhilSys) Infrastructures
The next-generation peso real-time gross Data-sharing scheme to
consumer data for product Official national identity card for
settlement (RTGS) system allow 3rd parties access to Credit Risk Database (2022), Movable
financial information Collateral Registry (2020-2023), Study
development; PhilSys- Filipino citizens and foreign on Digital Supply Chain Finance
permanent residents (2020-2021), Agent Registry (2022)
enabled KYC; Next-
generation payment and
settlement system
Digital
Governance
& Standards Open Banking and Application Data Governance and Ethical Adoption of the ISO 20022 Cybersecurity Policies and
Programming Interfaces (API) Use of Data Policy International Messaging Measures
Standards and Communication To develop supervisory tools
Issuance of policy that incorporates
Adoption of open banking BCBS principles on effective risk Standard including Cybersecurity Maturity
data management Model (CMM), Framework and
regulations that lay down the To be implemented by all the Cybersecurity Controls Self-
technical, security, and BSFIs and 3rd party Assessment (CCSA)
governance standards payment service providers

Source: Bangko Sentral ng Pilipinas (BSP)

 04 Philippines Blockchain/ Cryptocurrency
Cryptocurrency transactions soar as the adoption rises

Cryptocurrency transactions
Jan – Sep in 2019 and 2020 Data from the Bangko Sentral ng
Pilipinas (BSP) shows that the value of
cryptocurrency transactions recorded a
80 76 8
36% 7.2 five-fold increase in 2020 due mainly to
70 7 the surge in the price of Bitcoins, as well
as the broadening of regulations amid the
60 6
5.3 evolving nature of the financial
410%

Volume (million)
Value (billion)

50 5 innovation.

40 4 Cryptocurrency transactions are

expected to soar further in 2021 as the
30 3
Philippines see a continued increase in
20 14.9 2 the adoption of virtual currencies in
the payments and remittance sphere,
10 1
as well as the delivery of other financial
0 0 services, according to BSP.

2019 2020 2019 2020

Source: Bangko Sentral ng Pilipinas (BSP)

 04 Philippines Cryptocurrency
Cryptocurrency to become mainstream as the Philippines embraces digital assets
The Philippines is one of the world’s fastest adopters of cryptocurrency. The pandemic has fueled the trend, with Filipinos realizing the value of crypto as an investment and income
generating currency. A rise in crypto-friendly technology in the country has also facilitated its uptake. Although crypto-supporting platforms were effective, the industry in general
required more support from the government and regulatory institutions.

May 2021 Jul 2021 Jul 2021 Jul 2021

Feb 2019
UnionBank sets up a Bitcoin
ATM in Manila. It enables users
to deposit and withdraw from a
wide range of cryptocurrencies
such as Bitcoin, Ethereum,
Litecoin and Monero.
GCash, the country’s
leading mobile wallet
with over 40 million
users, is looking to offer
cryptocurrency as
addition to its growing
portfolio of financial
products and services.
PDAX launches 7 new
cryptocurrencies. It
marks the first time that
cryptocurrencies are
offered on a local
exchange and available
to trade directly with the
Philippines peso.
Blockchain-based digital
wallet Coins.ph introduces
3 new cryptocurrencies.
The launch is part of the
additions and
enhancements Coins.ph
will release in 2021
Ripple collaborates with Japan’s money-transfer
provider SBI Remit, Philippines mobile
payment service Coins.ph, and crypto
exchange SBI VC to carry remittance payments
from Japan to the Philippines using Ripple’s on-
demand liquidity (ODL) service, leveraging
Ripple’s cryptocurrency XRP. As a result, the
market valuation of XRP rose to a record high.

2017 2019 2020 2021

2014 Feb 2017 Feb 2019

Virtual Bitcoin first became Jan 2020 Jan 2021 Jul 2021
In parallel with the central Mar 2021
currency popular in the bank’s virtual currency Pioneered in Asia, The BSP amended the guidelines on VC The Philippine Stock
To date, BSP has recognised
were starting Philippines. BSP exchange license, the Philippine Bureau of the exchanges that were issued in 2017 Exchange (PSE) is
17 VC exchanges that are
to grow, the established a formal Cagayan Economic Zone Treasury (BTr), to cover more types of virtual asset keen to provide
industry-compliant. PDAX
BSP issued regulatory framework Authority (CEZA), introduced collaborates with service providers (VASPs) and crypto trading as it is
welcomed collaboration with
an advisory to to regulate virtual its Digital Asset Token Offering UnionBank and PDAX requires VC exchanges to register awaiting guidelines
the BSP to support the
inform the currency (VC) (DATO) regulations and the and launches the as money service businesses from the Securities
creation of a crypto
public of the exchanges following Financial Technology Solutions Bonds.ph app for the (MSBs). The revised framework and Exchange
regulatory sandbox. BSP
features, the rise in the use of and Offshore Virtual Currency distribution of government aligns with standards set by Commission (SEC)
recognises the future of
benefits and VCs for payments (FTSOVC) License as part of bonds enabled by international bodies such as the and other regulators
crypto in the Philippines.
risks when and remittances in an initiative called “Crypto Distributed Ledger Financial Action Task Force (FATF) on cryptocurrencies.
dealing with the country. Valley Asia” that aims to turn Technology (DLT). on AML/ CFT/ PF.
virtual the special economic zone into
currencies.¹ a regional blockchain hub. .

Source: Fintech News Philippines, Bangko Sentral ng Pilipinas (BSP), Trade Press
Notes: (1) http://www.amlc.gov.ph/images/PDFs/Study%20on%20VC.pdf
 05 Philippines Digital Banking
To date, BSP has already issued six digital bank licenses
Launched June 2020
Headquartered Philippines (Land Bank of the Philippines)
Owner State-owned
Funding NA
OFBank is a wholly-owned subsidiary of the Land Bank
of the Philippines. OFBank’s license differs from other
digital-only banks or neobanks who are operating
under a rural banking license which adhere to a
different set of rules. OFBank was launched virtually
amid the pandemic as the Philippines’ first
branchless and digital-centric government bank.
Source: Fintech News Philippines, Trade Press
Launched March 2021
Headquartered Singapore (Tonik Financial Pte Ltd)
Investors Sequoia, Point72 Ventures, iGlobe, Insignia
Funding USD44 million
Tonik is a fintech from Singapore. Tonik seeks to
disrupt the Filipino retail banking industry by offering a
6% interest rate per annum to its customers. Tonik
does not have a minimum balance requirement or fees,
backed by powerful and secure cloud-based
solution by Mastercard, Finastra, AWS and Radar
Payments.
To Launch Q4 2021
Headquartered Singapore (DigibankASIA Pte Ltd)
Investors Unknown
Funding Unknown
Received license approval from BSP in June 2021 and
set to launch late 2021. UNObank is being built on a
robust technology stack. UNObank sets the premise
for a digital bank that offers one app and one card to
enable anyone, anywhere in the Philippines to save,
borrow, transact, invest, and protect their finances
easily, with speed and ease.
 05 Philippines Digital Banking
To date, BSP has already issued six digital bank licenses
To Launch Q2 2022
Headquartered Singapore (Tyme Ltd)
Owner African Rainbow, PLC, Ethos, Apis, JG Summit
Funding Unknown
GoTyme, a partnership between Filipino conglomerate
Gokongwei Group and Singapore-headquartered
digital banking group Tyme. GOtyme is expected to
launch in the second quarter of 2022. GoTyme is
reported to provide secure and easy onboarding
through an app and digital kiosks conveniently
located throughout the retail footprint of the Gokongwei
group.
Source: Fintech News Philippines, Trade Press
To Launch Mid-2022
Headquartered Philippines (Union Bank of the Philippines)
Owner The Aboitiz Group
Funding NA
The UnionBank’s digital banking application was
approved on Jul 15. The disclosure noted that
UnionBank will form a virtual bank known as
UnionDigital as a wholly-owned subsidiary. UnionBank
is looking to grow its share in the penetration of the
unbanked segment. UnionBank’s digital business, at
the height of the pandemic, recorded high growths.
To Launch Yet to disclose
Headquartered Philippines
Owner Voyager Innovations Inc
Funding Latest raised US$167M from KKR, Tencent, and IFC
Voyager, through its financial technology arm
PayMaya, has obtained the approval of BSP to
establish a digital bank on 20 September 2021. The
digital bank will leverage PayMaya’s financial
technology company to operate an end-to-end
financial services ecosystem with its e-wallet and a
merchant payments processing unit.
 05 Philippines Digital Banking
BSP halted the acceptance of digital banking applications as the sector is racing towards digital banking
adoption
The central bank has approved six digital banks and closed the window for new digital bank applications to maintain a stable and
competitive banking environment. With digital banks, BSP is looking to achieve its goal of shifting 50% of total retail transactions
in the Philippines to digital channels and raise the number of Filipino adults with bank accounts to 70% by 2023.

Key Players
Received digital banking license by BSP Digital-centric banking apps

Licensed on Jul 2020 Mar 2021 Q4 2021 Jul 2020 Nov 2020 Sep 2021 Jul 2020 May 2019 Jan 2019

No. of users Unknown Unknown NA Unknown 1.5 million 38 million 4.8 million 1 million 4 million
(Q3 2020) (Jun 2021) (Q2 2021) (Q1 2021) (Q1 2021)

Regional banks Tech/ Fintech players Local banks

Source: Fintech News Philippines, Trade Press

 06 Key Regulations Milestones
Philippine’s Central Bank pushes financial inclusion amid COVID-19

Payment Lending Data Privacy

Fintech
BSP unveils Digital Payments SEC imposed a moratorium on the The National Privacy Commission (NPC)
SEC launched registration of new online lending launched the Philippine Privacy Trust Mark
Transformation Roadmap 2020-
Philifintech Innovation platforms (OLPs) of financing and (PPTM), which aims to increase trust and
2023. The roadmap charts the
Office. The office focuses lending companies, ahead of the release confidence in businesses and public offices
BSP’s current initiatives and
on the regulation of of new rules that will govern the licensing as the mark offers the highest level of
strategy in advancing an efficient,
fintech use in the and registration of the OLPs of financing assurance on data privacy compliance and
inclusive, safe and secure digital
Philippines. and lending companies. secure cross-border data transfers.
payments ecosystem.

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

Digital Banking Cryptocurrency Foreign Exchange

BSP Introduces Digital
Banking Framework and
approves the recognition of
digital banks as a new bank
category that is separate and
distinct from the existing bank
classifications.
Open Banking
BSP establishes Guidelines on Virtual
BSP establishes the guidelines on
Asset Service Providers (VASP), or
Open Finance Framework which is
entities that facilitate financial services
seen as a key enabler for digital
through the conduct of virtual asset (VA)
transformation and financial inclusion.
activities, to cover new business models
The Open Finance Framework
and activities. The said guidelines
recognizes that advances in
amended the regulations on virtual
technology will facilitate the
currency exchanges (VCE) that were
development of bespoke products
issued in 2017.
and services for every Filipino using
their own consumer data.
Regulation
(FX)
SEC and the Bureau of
BSP approved further
Internal Revenue (BIR)
amendments to FX
teamed up to strengthen
regulations to promote
taxation and regulation of
greater ease in the use of
fintech companies' while
FX resources of the
encouraging their growth
banking system, and further
and continued innovation.
streamline/simplify
procedures and
documentary requirements
for FX transactions.

SEC refers to Securities and Exchange Commission. Source: Bangko Sentral ng Pilipinas (BSP)
• If we’ve missed you out in our fintech map or if
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