The Philippine digital banking sector has attracted more than $700 million in investments from both global and local sources since 2021, demonstrating robust investor confidence and a rapidly growing market, according to a statement released by the Digital Bank Association of the Philippines (DiBA PH).
The association reported significant growth in both the number of depositors and deposit amounts, with depositor numbers increasing to 5.9 million by the end of 2023, up from 2022.
Similarly, total deposits soared to PHP69 billion (approximately $1.24 billion), nearly doubling from PHP35 billion in the previous year. Additionally, the gross total loan portfolio witnessed a substantial rise, reaching nearly PHP25 billion, up from PHP11 billion in 2022.
Angelo Madrid, President of DiBA PH and Maya Bank, highlighted the impact of these investments.
“The significant and continued investment in the digital banking industry is a strong vote of confidence in its ability to stimulate economic growth, create jobs, and broaden access to savings and credit,” he stated.
Madrid also emphasized the importance of strategic investments and capital in navigating digital banks towards profitability and accelerating financial inclusion.
Echoing Madrid’s sentiments, Henry Aguda, trustee at DiBA PH and President and CEO at UnionDigital Bank, remarked on the broader implications of these investments.
“This is 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,” Aguda said.
In 2021, the Bangko Sentral ng Pilipinas (BSP) established a new digital banking category to enhance financial services, limiting the number of entrants to six.
The current licensed digital banks in the Philippines include GoTyme Bank, Maya Bank, Overseas Filipino Bank (OF Bank), Tonik Digital Bank, UnionDigital Bank, and UNO Digital Bank.
Nate Clarke, DiBA PH Trustee and President and CEO of GoTyme Bank, expressed optimism about the future of the industry.
“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,” Clarke concluded.
