Only two of the six digital banks in the Philippines are profitable, said the Bangko Sentral ng Pilipinas (BSP). Digital banks in the country are relatively new, which means they might still struggle to find what works for their market.
“There are two among the six banks that are profitable, but the expectation is that it would take about five to seven years before a digital bank becomes profitable,” said Melchor Plabasan, Bangko Sentral ng Pilipinas (BSP) Director.
The BSP did not identify which two banks, but the six digital banks in the country are: Tonik Digital Bank, Maya Bank, Overseas Filipino Bank, UNO Digital Bank, UnionDigital Bank (UDB), and GoTyme Bank Corporation.
Digital banks offer their products and services through online channels and have no physical branches. According to the BSP, digital banks in the Philippines processed over P8.45 billion worth of digital transactions in the first half of 2022.
The use of cashless transactions in the country proliferated during the pandemic.
According to Pablasan, only around 5% of digital banks in the world are profitable.
