THE BANGKO SENTRAL ng Pilipinas (BSP) is unsure if they will be able to release operating licenses to new digital banking players within the year amid a lengthy vetting and approvals process.

Speaking to reporters on the sidelines of an event on Wednesday, BSP Deputy Governor Lyn I. Javier, who heads its Financial Supervision Sector, said they will release the list of new digital banks in “due time.”

Asked if that may be possible this year, she said: “In due time, (because) I cannot say so.”

“Because even if we… approve, say granting a license, they still have to process the articles of incorporation (and) bylaws, which process is beyond the control of the BSP,” Ms. Javier added.

She said the application process for new digital banking licenses includes the BSP’s evaluation, granting of license, and registration of its articles of incorporation and bylaws with the Securities and Exchange Commission (SEC).

“When we receive the application, we have to compare them across. We have to look at the business model, we have to vet, (and) we have to look at the fitness and propriety of the owners, proposed directors, (and) officers,” Ms. Javier said.

“So, as you go through the process as well you have to go back to the applicant and ask these questions and again vet. So, we have to vet it thoroughly.”

The BSP likewise assesses if applicants are offering a viable or good value proposition for the banking industry.

According to the central bank, institutions seeking to establish a bank must undergo a three-stage application process, starting with applying for the BSP’s approval.

The BSP will then notify the applicant’s organizers of its decision within 20 business days upon the submission of its application.

This is followed by a 15-day application period for a certificate of authority to register with the SEC its proposed articles of incorporation and/or bylaws indicating its purpose to establish a bank​​.

After this, applicants should seek a certificate of authority to operate a bank, a process that typically takes five working days.

Ms. Javier said the release of new licenses will depend on how fast applicants could complete the entire process, adding that she hopes they could do so before yearend.

“(It will depend) on how fast they could comply with the requirements of both the BSP and SEC. So, depending on timing and process.”

The central bank said last year that they received three digital banking license applications after the deadline lapsed on Nov. 30, below the four slots it opened.

BSP Governor Eli M. Remolona, Jr. said last week that they have yet to decide which applicants will be granted licenses as new players seeking to join the industry are subject to different prudential requirements and application processes compared to those digital banks that acquired rural banks.

The new digital banks will be announced one by one, he added.

Currently, six digital banks are licensed by the central bank to operate in the Philippines, namely, Tonik Digital Bank, Inc.; GoTyme Bank Corp.; Maya Bank, Inc.; Overseas Filipino Bank, Inc.; UNObank, Inc.; and UnionDigital Bank, Inc. — Katherine K. Chan