JG Summit in the Philippines and SA’s TymeBank secure digital banking license
Philippine conglomerate JG Summit Holdings and its partner, South Africa’s TymeBank, have been granted a license to operate a digital bank in the Southeast Asian country, the companies said on Monday.
GOtyme is the fifth-largest digital banking licensee in the Philippines, after UnionDigital, Overseas Filipino Bank, state-run, UNOBANK and Tonik Digital Bank Inc.
The launch is slated for Q2 2022, acquiring customers through an app and digital kiosks in JG Summit malls and retail stores, the companies said.
In November, the central bank of the Philippines authorized the creation and operation of digital banks with a target of at least 50% of payments going digital by 2023, and 70% of adults using a digital transaction account. ‘here to wean consumers from loan sharks.
Reuters announced TymeBank’s first expansion in Asia in February. The digital bank, which has more than 3.5 million customers in South Africa, is majority owned by billionaire Patrice Motsepe.
Asian regulators are opening up banking to digital players, driven by a boom in mobile connectivity and the prospect of tech companies offering low-cost financing services. The Covid-19 pandemic has accelerated the adoption of digital services across the region.