Global and local investors have poured over $700 million (around P40 billion) into the country's digital banking sector to support the industry's growth and potential to reshape the online financial landscape.

The Digital Bank Association of the Philippines (DiBA PH) said the country's six digital banks have attracted significant capital since 2021.

'The significant and continued investment in the digital banking industry sector is a strong vote of confidence in its ability to stimulate economic growth, create jobs, and broaden access to savings and credit,' DiBA PH and Maya Bank president Angelo Madrid said.

According to DiBA PH, the digital-first approaches of neo lenders paved the way for wider access to deposit accounts and credit.

It said that depositors of digital banks have reached 5.9 million at the end of 2023, while the value of deposits almost doubled to P69 billion in 2023 from P35 billion in 2022.

The industry's total loan portfolio more than doubled to nearly P25 billion from P11 billion.

'These milestones position digital banks as leaders in delivering meaningful, tech-empowered and personalized financial services, particularly to communities historically underserved by conventional banking entities,' DiBA PH said.

Digital banks are also addressing key gaps in the country's financial infrastructure despite challenges such as the slow rollout of the national ID system and limited coverage of the national credit bureau, DiBA PH said.

'We see this as more than a financial endorsement from the global and local investment communities; it's a recognition of the sector's potential to drive economic inclusivity and innovation, setting a new standard for the future of banking in the Philippines,' DiBA PH trustee and UnionDigital Bank president Henry Aguda said.

The Bangko Sentral ng Pilipinas (BSP) established a new digital banking category in 2021 to boost digital financial services in the country. All six digital banks established their operations and went live by 2023.

There are six BSP-licensed digital banks in the Philippines, namely GoTyme Bank, Maya Bank, Overseas Filipino Bank (OF Bank), Tonik Digital Bank, UnionDigital Bank and UNO Digital Bank.

GoTyme Bank is backed by the Tyme Group and the Gokongwei Group, while Maya Bank's investors include KKR, PLDT, Tencent, IFC, SIG Ventures, EDBI and First Pacific.

OF Bank operates with backing from Land Bank of the Philippines, while Tonik's funding sources comprise Mizuho Bank, Sequoia India, Point72 Ventures, and Insignia Venture Partners.

UnionDigital, a subsidiary of UnionBank, leverages its parent company's support within the Aboitiz Group and UNO Digital Bank is financed by Creador Private Equity and Gateway Partners.

'All our members have credible investors who are committed to growing the Philippine market in the long run. We all look forward to growing the industry as we stabilize the sector and scale up our various initiatives, including credit,' DiBA PH trustee and GoTyme Bank president Nathaniel Clarke said.


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