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Digital Banks: BSP Speaks on PH Benefits from It amid the Crisis

BSP Speaks on Role of Digital Bank on PH Recovery

DIGITAL BANKS – Bangko Sentral ng Pilipinas (BSP) spoke on the benefits of having digital banks in the country amid the crisis now.

The impact of the COVID-19 pandemic has greatly affected the different fields and industries in the Philippines. Its effects are felt even by big institutions and it takes a spiral effect down to the household level. Many Filipino families are financially struggling now due to the crisis.

Amid the pandemic, many businesses were not able to cope with the demands of the current situation. The country is under community quarantine measures for more than a year now and businesses may be operating but not in the usual setting.

As many businesses were not able to cope with the struggling situation now, a lot of them had to temporarily or permanently close. Many people lost their jobs amid the crisis, too.

Digital Banks
Photo Credit: Fitz Villafuerte

The economy of the Philippines is undeniably calling for urgent ways and measures to stop its continuous drop since the pandemic began. Based on a report on ABS-CBN News, Bangko Sentral ng Pilipinas (BSP) cited that digital banks are among those that can help the economy recover.

Digital banks are banking institutions that have no physical branches or buildings but provide banking services to the people. They are most beneficial to unbanked people and those who are underserved. BSP Chief Benjamin Diokno expressed that they expect these banks “to help fuel recovery and long term growth for the Philippines” together with conventional banks.

Diokno stressed that the country is not only for the recovery of the economy from the crisis but for one “that is better than ever”, stronger, more inclusive, sustainable, and more technologically advanced. Based on the report, the BSP Chief stressed that technology helps the exponential growth in output and boosts transactions that pave the way for faster income generation.

BSP previously granted a license to operate to at least six (6) digital banks – OF Bank, Maya Bank, Tonik Bank, GoTyme, Union Digital, and UnoBank.

You may also visit – UNObank To Launch Services Including Online Loans in PH

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