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MANILA – The Philippine monetary authorities’ offer to increase the share of digital payments to at least half of total retail transactions by 2023 received another boost after the policy-making Monetary Board (MB) recognized the digital bank as another bank classification.
In a press release on Thursday, the central bank said that the MB approved the recognition of digital bank as separate from the existing classification, citing that its products and services “are processed end-to-end through a digital platform and / or electronic channels without physical branches “.
“We see these banks as additional partners to further promote market efficiency and expand Filipinos’ access to a wide range of financial services, moving closer to realizing our goal of at least 50 percent of total financial retail payment transactions have moved digital, and 70 percent of adult Filipinos have transaction accounts by 2023. This is seen as removing hot spots and skipping our financial inclusion agenda, ”said the Governor of Bangko Sentral ng Pilipinas (BSP), Benjamin Diokno.
The BSP said that digital banks will be subject to the same prudential requirements as other banks.
Although their products and services will be delivered through a digital platform, these banks must still have a physical office “to house administration offices and other support operations and serve as the main center for handling customer concerns and the point of contact for interested parties, including BSP and other regulators. “
“Digital banks can also turn to cash agents and other qualified service providers subject to existing regulations to complement innovative delivery of financial services,” the central bank said.
Diokno, in his speech during the opening of the two-day Virtual Financial Education Stakeholders Expo, reiterated Thursday that the pandemic reinforced the achievement of the central bank’s goal of increasing digital payment transactions in the country.
He said that many Filipinos continue to insist on taking advantage of digital payments due to various factors such as lack of information or fear of misuse and loss of money in the digital world.
He raised the need for BSP and financial service providers to expand awareness of cybersecurity and digital literary programs.
“With a combination of enabling policies and regulations, as well as risk management systems and proactive collaboration across the industry, financial consumers can be assured of the integrity of the digital financial ecosystem,” he said.
While regulators and service providers ensure the security of the system, Diokno said consumers also play a vital role in protecting their personal account information and money.
“While the digitization of financial services is exposed to cyber threats and online scams, the first line of defense is our vigilance as users,” he said. (PNA)
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