Digital banks can help boost the economic recovery in the Philippines, according to BSP.
BSP — The Bangko Sentral ng Pilipinas said on Wednesday that digital banks, along with traditional banks, can help boost the country’s economic recovery from the pandemic as it pushed for a “tech-savvy” economy.
Digital banks were financial institutions without physical branches and were designed in order to ease onboarding to the banking system especially for the underserved and the unbanked.
BSP Governor Benjamin Diokno said in a statement that they expected digital banks to help fuel recovery and long-term growth for the country alongside conventional banks.
“The Philippines does not simply aim to recover from the crisis. There is a whole-of-government effort toward a post-COVID Philippine economy that is better than ever,” Diokno said. “This means an economy that is stronger, more technologically advanced, more inclusive, and sustainable.“
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Earlier, the central bank approved a framework for digital banking in the Philippines before it issued six digital banking licenses as part of its initiatives “to foster a stronger and more technologically-advanced Philippine economy”.
According to Diokno, technology helped exponential growth in output.
“In finance, it makes transactions easier and faster which speeds up income generation,” Diokno said.
ABS-CBN News reported that Tonik Bank, Landbank’s OF Bank, UnoBank, Maya Bank, Union Digital, and GoTyme have licenses from the central bank to operate as digital banks.
The central bank earlier launched its Digital Payment Transformation Roadmap which aimed to digitalize 50% of payments and urge 70% of the population to open bank accounts by 2023.
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