MANILA — Years after the first group of digital banks began operating in the Philippines, the country’s central bank has opened the door for others to enter the market. However, with the frontrunners still struggling to make profits and manage credit risk, experts are divided over the prospects for new entrants and the industry as a whole.
Bangko Sentral ng Pilipinas (BSP), the central bank, lifted a moratorium on new licenses for digital banks, with the change to take effect Jan. 1, marking a step forward in the government’s effort to boost digitization and promote financial inclusion.
Read More: Philippines eases digital bank cap as industry fights for profits
