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Three months in the past, the Philippines introduced its maiden set of digital banks. Among the many six licensees had been state-owned Abroad Filipino Financial institution and a yet-to-be-operational UNObank.
However all eyes had been on the opposite awardees: digital natives Tonik, Maya, GoTyme, and UnionDigital Financial institution, the neobanking subsidiary of UnionBank. Except for UnionDigital, the group gained consideration as a result of they had been just about fintechs and e-wallets, relatively than established banks.
E-wallets get pleasure from a lot reputation within the Philippines, however they have to cope with laws for non-bank entities and paper-thin margins (we’ve written about it). As such, banking licences appealed to them—an opportunity to function on the identical enjoying subject as their financial institution counterparts.
However this week, a financial institution went the opposite means round by pursuing e-wallet and fintech benefits. As an alternative of carefully guarding its seat on the banking desk, the nation’s third-largest financial institution is now taking pages from the fintech playbook.
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