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Digital banks to help drive economic recovery, says BSP

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ABS-CBN News

<p>MANILA - Digital banks, along with traditional banks, can help boost the country&#x27;s recovery from the COVID-19 pandemic, the Bangko Sentral ng Pilipinas said Wednesday, as it pushes for a &quot;tech-savvy&quot; economy.</p><p>Digital banks are financial institutions without physical branches and are designed to ease onboarding to the banking system especially for the unbanked and the underserved.</p><p>&quot;We expect the digital banks to help fuel recovery and long-term growth for the Philippines, alongside conventional banks,&quot; BSP Gov. Benjamin Diokno said in a statement.</p><p>&quot;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. This means an economy that is stronger, more technologically advanced, more inclusive, and sustainable,&quot; he said.</p><p>The BSP earlier approved a framework for digital banking in the country before it issued 6 digital banking licenses.</p><p>This is a part of its initiatives &quot;to foster a stronger and more technologically-advanced Philippine economy,&quot; the central bank said.</p><p>&quot;Technology aids exponential growth in output. In finance, it makes transactions easier and faster which speeds up income generation,&quot; Diokno said.</p><p>Landbank&#x27;s OF Bank, Tonik Bank, UnoBank, Union Digital, Maya Bank and GoTyme have licenses from the BSP to operate as digital banks.</p><ul class="op-related-articles"><li><a href="https://news.abs-cbn.com/business/09/24/21/digital-bank-gotyme-eyes-mid-2022-launch">Digital bank GOTyme eyes mid-2022 launch: Lance Gokongwei</a></li><li><a href="https://news.abs-cbn.com/business/09/20/21/paymaya-gets-digital-bank-license-from-bangko-sentral">PayMaya gets digital bank license from Bangko Sentral</a></li><li><a href="https://news.abs-cbn.com/business/08/19/21/bsp-to-stop-accepting-digital-bank-applications-aug-31">Bangko Sentral to stop accepting digital bank license applications by Aug. 31</a></li></ul><p>The BSP earlier launched its Digital Payment Transformation Roadmap which aims to digitalize 50 percent of payments and encourage 70 percent of the population to open bank accounts by 2023.</p><p>In a study released October, the BSP said at least 1 in 5 payments in the country is now done digitally as the COVID-19 pandemic drive the growth in InstaPay and PESONet services.</p><ul class="op-related-articles"><li><a href="https://news.abs-cbn.com/business/10/18/21/1-in-5-payments-now-digital-says-bsp">BSP says 1 in 5 payments now digital; InstaPay overtakes ATM withdrawals in 2020</a></li></ul><div><strong>RELATED VIDEO: </strong></div><figure class="op-interactive"><iframe frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=1646531" width="100%"></iframe></figure><div class="iwantbar">Watch more in <a href="//www.iwantv.com.ph/">iWantv</a> or <a href="//tfc.tv/">TFC.tv</a></div><div><br/></div>

Digital banks, along with traditional banks, can boost the country's pandemic recovery, the Bangko Sentral ng Pilipinas said Wednesday, as it pushes for a 'tech-savvy' economy.