Philippines central bank, The Bangko Sentral ng Pilipinas (BSP) says it has lifted its moratorium on new electronic money issuers from non-bank financial institutions (EMI-NBFI). The move is said to be aimed at enhancing digital payments in the country.
However, there are still a number of conditions that need to be met before a would-be NBFI can get a licence.
Firstly, says the Electronic Payments International news service, applicants are advised to submit proposals that are backed by market research and data-driven analysis. These applications have to clearly articulate the intended market and provide evidence-based insights into the business model and target demographic, thereby strengthening their value proposition within the financial sector.
Other conditions include standard criteria such as ownership transparency, shareholder suitability, and the fitness and propriety of directors and senior management. Applicants must, of course, demonstrate that they have adequate capital and that they have implemented proper risk management systems.
In addition applications will favour innovative business models that target unserved markets and leverage new technologies.
The moratorium, initially established in November 2021 for a two-year period, was then extended to 15 December 2024. It has now expired.
BSP deputy governor Mamerto Tangonan is quoted by news services as saying: “The BSP’s decision to lift the moratorium aims to promote digital payments, enhance financial inclusion, and foster innovation that could serve a wider segment of the market.”
To date, licences have reportedly been offered to 42 EMI-NBFIs and 27 EMI-banks. The licensed entities offer electronic money transfer, remittance services, and other digital financial services.
