GCash has no plans of applying for a digital banking license, according to Mynt.
MYNT – The head of Globe’s fintech arm said on Monday that GCash has no plans of applying for a digital banking license like the company’s main competitor.
This, as it preferred to remain a platform for other financial institutions instead of competing with them.
Mynt CEO Martha Sazon said that they’re already able to offer a full suite of financial services even without the digital banking license.
GCash’s competitor PayMaya earlier announced that it secured a digital banking license from the Bangko Sentral ng Pilipinas (BSP) to put up its own digital bank called “Maya Bank”.
However, Sazon said that not having its own bank allowed GCash to be “more flexible–whether we want to originate our own loans or partner with other banks”.
According to Sazon, becoming a digital bank was “not a magic solution” in order to be able to address all the current problems of the industry.
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The Ayala-led financial technology (fintech) also said that while it had been profitable for the past 4 months, profitability was still currently not its main goal.
“GCash is one of the very few fintech companies in the world that has proven that it can make money. But moving forward, our focus really is to grow the business, grow the user base and the use cases,” Sazon said. “And if that means losing money just to invest more, then we are not hung up on just making money.”
Meanwhile, Globe CEO Ernest Cu said that GCash wasn’t keen on doing an initial public offering (IPO) soon.
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