Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, will stop accepting new applications for digital bank licences starting December 1, 2025, as part of a broader effort to manage financial stability amid a growing wave of digitalisation in the banking sector.
The move follows the Monetary Board’s approval of a new moratorium on Sept. 18. Applicants will have until November 30, 2025, to submit complete requirements, which will be processed on a first-come, first-served basis, the regulator said.
“Incomplete or non-compliant submissions will not be accepted after the deadline,” BSP noted in a statement, adding that applicants must show strong governance, robust risk frameworks, and a compelling value proposition that addresses the needs of Filipinos.
This is the central bank’s second pause on digital bank licensing.
This is the BSP’s second pause on digital bank licensing. The regulator granted six licences in 2022, then imposed a moratorium later that year to monitor market dynamics. In January 2025, it reopened the window and expanded the cap to ten, effectively allowing four additional licences. With six digital banks now operational—Tonik, Maya Bank, UnionDigital, GoTyme, UNObank, and OF Bank—the latest freeze once again shuts the door to fresh applications.
In August this year, BSP deputy governor Chuchi Fonacier told DealStreetAsia that while several local and foreign institutions had expressed interest, only one formal application had been submitted as of the end of July.
The moratorium comes at a time when the sector is beginning to show signs of improved financial performance. BSP data showed that combined losses across the digital banking industry halved in the first quarter of 2025 to 1.04 billion pesos ($18 million), compared with 2.07 billion pesos a year earlier. With most digital banks now in their third year, heavy customer acquisition spending is gradually giving way to stronger deposit growth and expanding loan portfolios.
Losses across the digital banking industry halved in Q1 2025
Revenues are also scaling faster than costs. Operating income more than doubled year-on-year to 3.8 million pesos in the first quarter, supported by a 75% surge in interest income to 4.6 million pesos, while interest expenses climbed at a slower 26% to 1.2 million pesos.
The BSP has emphasised that while digital lenders are key to driving financial inclusion, their growth must be underpinned by sound governance and resilience to emerging risks such as cybersecurity, liquidity management, and consumer protection.
