The Philippine central bank, Bangko Sentral ng Pilipinas (BSP), will stop accepting applications for new digital bank licenses on December 1, 2025. This decision follows a moratorium on digital bank licensing that was approved on September 18. Interested applicants have until November 30, 2025, to submit their complete applications, which will be evaluated on a first-come, first-served basis. The BSP specified that applications must meet all documentation and licensing requirements in terms of both form and substance, and that incomplete submissions will not be accepted after the deadline.
This is the second pause on digital bank licensing by the BSP. The central bank had previously lifted a moratorium and increased the cap on the number of digital banks from six to ten in January 2025, effectively opening the door for four new licenses. Currently, six licensed digital banks are operating in the country. The BSP’s decision to halt new applications is part of a broader effort to balance digital innovation with financial stability.
A Look at the Current Digital Banking Landscape
With six digital banks currently operational—including Tonik, Maya Bank, and UnionDigital—the central bank has been monitoring the sector as it shows signs of improved financial performance. Data from the BSP revealed that combined losses across the digital banking industry halved in the first quarter of 2025 compared to a year earlier, as heavy customer acquisition spending has started to give way to stronger deposit growth and expanding loan portfolios. The BSP has emphasized 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 and consumer protection. The decision to pause new licenses allows the regulator to continue monitoring market dynamics and ensure that the digital banking sector is growing in a stable and sustainable manner.
Author’s Opinion
The central bank’s decision is a strategic move to ensure the stability and controlled growth of the digital banking sector. By pausing new licenses, the BSP is giving the existing players a chance to mature and prove their business models before the market becomes oversaturated. This cautious approach, while it may temporarily slow innovation, is a pragmatic way to protect consumers and the financial system from the potential risks associated with an uncontrolled digital banking boom. It demonstrates that the Philippine government is prioritizing long-term financial stability over the rapid, and potentially reckless, expansion of the fintech sector, and it signals a new, more mature phase for the country’s digital banking revolution.
Featured image credit: XT7 Core via Unsplash
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