A Guide To The 6 Licensed Digital Banks in the Philippines
Banks have been an essential component not only to an individual but most especially to the economy. Could you imagine a world without banks? If there were none, the primary questions that may arise are “Where would we put and secure our large savings?” or “Where would we borrow money?” One of the numerous benefits of banks is- through credit creation and bank deposits, they can easily create rich assets and create a multiplying effect on the economy.
Just thinking about the convenience of banks in our lives, it was made more convenient by developing digital banks. In 2020, the Bangko Sentral ng Pilipinas (BSP) authorized the rise of digital banks in the Philippines. Even before the pandemic, digital banks were already a thing in neighboring countries. And when Covid-19 surged in the Philippines, it accelerated the growth of digital banks for everyone’s convenience.
Today, there are a total of 6 (six) digital banks in the Philippines that are authorized by the Bangko Sentral ng Pilipinas (BSP) and were issued Certificates of Authority (COA). They have prepared safety protocols for digital banks to follow.
What are the 6 digital banks in the Philippines?
Here are the licensed and authorized banks by the Bangko Sentral ng Pilipinas (BSP) to ensure the safety and security of customers.
Union Digital Bank (UDB)
One of the six digital banks that the BSP has formally certified is Union Digital Bank, the digital arm of the Aboitiz-led Union Bank. They provide the same offers as their traditional bank but they aim to bridge the gap between regulation and innovation. Their goal is to provide Filipinos the greatest, most cutting-edge digital banking experience possible through co-working to achieve a more diverse, more “Tech’d Up” Pilipinas. They look forward to being reachable to the underbanked and underserved Filipinos nationwide.
Their goal is to empower every Filipino by designing banking processes that promote financial inclusion and, ultimately, enhance Filipinos’ quality of life. Their core values of accountability, responsibility, transparency, and compliance with regulations, all contribute to the trust they want to foster. Their savings account has a free registration process and does not require a maintaining balance!
If you like the values and objectives of this bank and are interested in opening an account, here is what you need to know. The Union Digital Bank app is currently only accessible by invitation. You will want an ID document if you have an invite code and want to open a UnionDigital Bank account to verify your identification.
GoTyme (GTYME)
Among the six digital banks that will be mentioned, GoTyme is the last to complete the 6. Regardless of its late entrance, it has the most promising and convenient mobile banking experience and key features. It is a joint venture between the Gokongwei Group formed by Robinsons Bank, Robinsons Land Corporation, and Robinsons Retail Holdings, Inc. The agreement united TymeBank’s secure banking infrastructure, which already successfully serves over 5 million customers in South Africa, with the large ecosystem spanning multiple businesses of the Gokongwei Group.
This is considered one of the best digital banks because of its convenience which can be testified with whatever works best for you. You can either download the GoTyme Bank app or stop by one of their kiosks. When you open an account in their kiosks, in less than five minutes, you can obtain a free ATM debit card.
To open an account, you might need to prepare the following: Your Philippine mobile number, your legitimate Philippine ID, as well as some basic details like name, residence, and occupation. Their savings account does not require zero maintaining balance and you can earn up to 3% of interest rate per annum.
Tonik Digital Bank Inc. (TONDB)
If GTyme is the last to enter the 6 certified digital banks, Tonik is the first official neo bank that got a digital bank license from the BSP. Over the time, TONDB is still trusted among other digital banks in the Philippines.
After creating an account, the default savings account with a 1% annual interest rate is immediately available to you. From here, you can withdraw money using a bank transfer, online banking, or over-the-counter payments. Additionally, you can transfer money to and from Tonik users.
Maya Bank Inc.
Maya Bank was formerly known as PayMaya, a feature-rich money app. It is a digital financial services platform that Voyager Innovations, Inc. developed and runs. The business provides several features, such as cashless transactions, money transfers, airtime top-up services, rewards programs, and much more. What makes it stand out than other digital banks in the Philippines is- it’s a customizable app according to user preference. As one of the pioneers in digital banking, Maya is the sole digital bank that has integrated crypto trading, making it possible to purchase well-known coins including Bitcoin, Ethereum, Solana, and Tether
To open an account, you just have to download their app, fill out the needed information, and wait for the verification.
This next digital bank in the Philippines is a subsidiary of Land Bank Philippines which simply means it is owned by the Philippine government. Obvious from its name, the target market of this digital bank is the Overseas Filipino Workers (OFW) and their families or beneficiaries.
It is branchless and solely digital. They focus on establishing long-term relationships with their customers and other stakeholders through strategic alliances and partnerships by offering convenient, dependable, and secure banking solutions responsive to the needs of OFWs and their beneficiaries. In particular, Overseas Filipino Bank makes it easier than ever for Filipinos living abroad to send money home to the Philippines. Millions of OFWs around the world now depend on it for essential services. Overseas Filipino Bank offers a safe environment for these transactions with exact data encryption, guaranteeing customer privacy and security at all times.
The key features of the app are its digital wallet, remittance, and payments platform, e-commerce services, and access to financial goods like savings accounts, debit cards, loans, investments, and insurance. Their services vary from the visa debit card of OFW to the regular debit card of the beneficiary. To open a savings account, OFWs and beneficiaries are required to present 1 valid ID for scanning and verification processes.
UNObank Inc. (UBI)
The first full-spectrum digital bank in South East Asia is UNO Digital Bank. Their objective is, “We develop a fresh method of banking that elevates you by making it easier, better, and more accessible”. To handle one’s full financial life cycle trip with speed and comfort, UBI is on a mission to offer a single trustworthy interface- a platform where you may save, borrow, transact, invest, and protect straightforwardly and practically. By offering these services digitally, they aim to increase the number of customers who can purchase their services at a lesser price without compromising on quality or security.
When you open a saving account, UBI has free insurance with up to a 4.25% interest rate. Deposits up to PHP 500,000 are insured by PDIC or the Philippine Deposit Insurance Corporation.
What is the No. 1 Best Digital Bank in the Philippines?
Maya Bank Inc. is the best among all the digital banks in the Philippines. Users can send money, pay bills online, buy cryptocurrency, shop online, and more with this all-in-one financial software. The interest rate on its high-yield savings accounts is 6%. Its interface also has the best features and user-friendly.
