Digital banking catalyzes financial inclusion

The issuance of the country’s Digital Banking Framework brings the Philippines closer to its strategic objective of greater financial inclusion that supports economic growth, according to the Bangko Sentral ng Pilipinas (BSP).

“Like an automobile bringing passengers to their desired destinations, the Digital Banking Framework contributes to transporting the country to greater financial inclusion and to further realization of a well-oiled financial system in the Philippines,” said BSP Governor Benjamin during the recent BSP Webinar on “The Age of Digital Banking.”

The recently issued Digital Banking Framework sets a distinct bank classification for digital banks and provides the corresponding guidelines for their establishment. It is also seen as an integral building block in promoting an enabling regulatory environment that fosters responsible innovation, promotes cyber resilience, and contributes towards advancing the digitalization of the financial sector.

Due to their digital-centric business model, the operation of these banks should be underpinned by sound digital governance; robust, secure, and resilient technology infrastructure; and effective data management strategy and practices. The Monetary Board has approved the applications of four digital banks as of July 2021.