New digital bank set to launch in the Philippines
The Philippines is moving fast forward into the digital banking age with the fifth license granted to a neobank by the central bank Bangko Sentral ng Pilipina.
The new addition is GOtyme, a joint venture between the Gokongwei Group, one of the biggest conglomerates in the Philippines, and Singapore-headquartered digital banking group Tyme, which has set already up a digital bank in South Africa.
Expected to launch in the second quarter of 2022, GOtyme said it will be not only targeting tech-savvy younger adults with its online and mobile banking offers, but also the millions of underbanked and unbanked people in the nation of 108 million.
GOtyme is part of the central bank’s efforts to bring more Filipino adults into the banked population and have 50 per cent of payments done online by 2023. Currently, 71 per cent of Filipino adults are unbanked, resulting in traditional banking services being out of reach for most.
Effects on financial inclusion and the whole banking system to be evaluated
Just recently the central bank said it will limit the number of licenses for neobank to seven for three years starting from September 1, 2021 to give it time to evaluate the effects on financial inclusion and the overall impact on the banking industry by the digital-only banks.
“This… strategy will assist in the democratisation of financial services, addressing the needs of all Filipinos regardless of age, income or geography,” said Jojo Malolos, president and CEO of GOtyme, adding that the bank would provide secure and easy onboarding through both an app and digital kiosks located throughout malls and retail outlets of Gokongwei group.
In July this year, UnionBank received a digital banking license as well. This came after Singapore-based Tonik Digital Bank, UNOBank and Overseas Filipino Bank had their licenses approved in April. Two more applications are currently under review.
The Philippines is moving fast forward into the digital banking age with the fifth license granted to a neobank by the central bank Bangko Sentral ng Pilipina. The new addition is GOtyme, a joint venture between the Gokongwei Group, one of the biggest conglomerates in the Philippines, and Singapore-headquartered digital banking group Tyme, which has set already up a digital bank in South Africa. Expected to launch in the second quarter of 2022, GOtyme said it will be not only targeting tech-savvy younger adults with its online and mobile banking offers, but also the millions of underbanked and unbanked people...
The Philippines is moving fast forward into the digital banking age with the fifth license granted to a neobank by the central bank Bangko Sentral ng Pilipina.
The new addition is GOtyme, a joint venture between the Gokongwei Group, one of the biggest conglomerates in the Philippines, and Singapore-headquartered digital banking group Tyme, which has set already up a digital bank in South Africa.
Expected to launch in the second quarter of 2022, GOtyme said it will be not only targeting tech-savvy younger adults with its online and mobile banking offers, but also the millions of underbanked and unbanked people in the nation of 108 million.
GOtyme is part of the central bank’s efforts to bring more Filipino adults into the banked population and have 50 per cent of payments done online by 2023. Currently, 71 per cent of Filipino adults are unbanked, resulting in traditional banking services being out of reach for most.
Effects on financial inclusion and the whole banking system to be evaluated
Just recently the central bank said it will limit the number of licenses for neobank to seven for three years starting from September 1, 2021 to give it time to evaluate the effects on financial inclusion and the overall impact on the banking industry by the digital-only banks.
“This… strategy will assist in the democratisation of financial services, addressing the needs of all Filipinos regardless of age, income or geography,” said Jojo Malolos, president and CEO of GOtyme, adding that the bank would provide secure and easy onboarding through both an app and digital kiosks located throughout malls and retail outlets of Gokongwei group.
In July this year, UnionBank received a digital banking license as well. This came after Singapore-based Tonik Digital Bank, UNOBank and Overseas Filipino Bank had their licenses approved in April. Two more applications are currently under review.
