The Bangko Sentral ng Pilipinas recently completed issuing Certificates of Authority (COA) to digital banks amid the pandemic. The COA will allow these financial institutions to now start full operations.
The six digital banks are the following: Tonik Digital Bank (TONDB) and Maya Bank (MAYA), which received their respective COAs in the first quarter. Overseas Filipino Bank (OFBDB) and UNObank (UBI) got theirs in the second quarter.
And lastly, UnionDigital Bank (UDB) and GoTyme Bank Corporation (GTYME), received their COA on July 12 and 29, respectively.
Of the six, Tonik Digital Bank, Maya Bank, and Overseas Filipino Bank are fully operational. The remaining digital banks are running on limited capacities.
Digital banks offer their products and services through online channels. They have no physical branches. According to the BSP, digital banks in the Philippines processed over Php 8.45 billion worth of digital transactions in the first half of 2022.
The use of cashless transactions proliferated at the onset of the pandemic.