Philippines eases digital bank cap as industry fights for profits

Central bank offers 4 new licenses, but experts see credit risk 'challenge'

20240823 Philippines peso bills

The Philippine central bank has approved four new licenses for digital bank operators as more Filipinos go cashless. © Reuters

RAMON ROYANDOYAN, Nikkei staff writer

MANILA -- Years after the first group of digital banks began operating in the Philippines, the country's central bank has opened the door for others to enter the market. However, with the frontrunners still struggling to make profits and manage credit risk, experts are divided over the prospects for new entrants and the industry as a whole.

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