Gokongwei-Tyme partnership secures Bangko Sentral’s online banking license

THE BANGKO SENTRAL ng Pilipinas (BSP) gave the country IfFifth digital banking license to a partnership between Gokongwei Group and Singapore-based Tyme, to be called GOtyme.

Gokongwei Group and Tyme said in a joint statement late Monday that the BSP had approved their application to operate a digital bank.

GOtyme is expected to start operating in the second quarter of 2022. It will allow users to register through both an app and digital kiosks that will be installed in shopping malls and the retail footprint of Gokongwei Group, which also owns the lender. local Robinsons Bank Corp. .

JG Digital Equity Ventures, Inc. Chief Executive Officer (CEO) Elmer “Jojo” M. Malolos will serve as GOtyme’s Chief Executive Officer. Meanwhile, Nathaniel Clarke, one of the founding members of Tyme, will serve as co-CEO of the digital bank.

“GOtyme will leverage the vast ecosystem of the Gokongwei Group which is highly integrated into the daily lives of Filipinos – where they already shop, eat and spend time with family. This distribution strategy will contribute to the democratization of Iffinancial services, catering to the needs of all Filipinos, regardless of age, income or location,” Malolos said.

“In South Africa, three million of our 3.5 million customers have joined TymeBank through our digital kiosks deployed in retail environments. We believe that the combination of this technology and Gokongwei Group’s nationwide retail footprint provides GOtyme with a clear path to rapid growth,” Mr. Clarke added.

“We see our digital banking model, with onboarding and training in retail networks and a well-designed app for transactions, as the best way to provide greater financial autonomy to our customers,” said JG Summit Holdings, Inc. Chairman and CEO Lance Y. Gokongwei said.

Approval of GOtyme’s application brings to Iffri. The Bangko Sentral ng Pilipinas (BSP) has previously granted e-banking licenses to state-owned Overseas Filipino Bank, Tonik Digital Bank, Inc. (Philippines), UNOBank and UnionBank of the Philippines, Inc.

The Monetary Board announced earlier that it would grant up to Iffive licenses under the digital bank released last year. However, BSP Governor Benjamin E. Diokno said he was willing to grant more if he saw strong demand.

BSP Deputy Governor Chuchi G. Fonacier said last week that three requests were still pending with the central bank, including the Gokongwei-Tyme partnership.

“The BSP will soon make known its political orientations regarding the number of digital banking licenses,” Ms. Fonacier said on Tuesday. “BSP will publish within the day regarding the deadline for submitting a digital banking license application.”

BSP’s digital banking framework distinguishes online lenders from traditional lenders such as commercial, savings, rural and Islamic banks, as they offer their services mainly through digital platforms instead of physical branches.

Digital lenders are expected to help the central bank achieve its goal of bringing 70% of adult Filipinos into the formal sector Iffinancial system and to have 50% of the volume and value of transactions in the country conducted online by 2023.

JG Summit posted a net profit of 814.51 million pesos in the second quarter, supported by improved revenues from most of its subsidiaries. This was a reversal from the loss of 2.62 billion pesos suffered a year ago.

For the Iffirst six months of the year, net pro from JG SummitIft reached 936.69 million pesos, recovering from the loss of 720.25 million pesos recorded during the period from January to June 2020.

Its shares closed at P59 each on Tuesday, up P1 or 1.72% from the previous Iffinished. — Noble LWT

Source link

David A. Albanese