Lawrence Agcaoili (The Philippine Star) – June 16, 2021 – 00h00
MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) is finalizing changes to bank advertising rules to prevent financial institutions from presenting themselves as digital banks.
Under the proposal, no banking advertising should mislead, distort or give a false impression to the public with regard to the banking category of a bank and the products or services it is authorized to offer.
“Universal and commercial banks that do not meet the criteria, as well as savings, rural and cooperative banks that have online banking sites or mobile applications, are prohibited from using digital channels in their marketing platforms.” , BSP said in a draft circular.
The regulator said that a large bank could market itself as digital banks if it does not have branches, sub-branches or light units offering financial products and services.
Likewise, a universal or commercial bank should also have at least one significant business that is fully digital or processed end-to-end through a digital platform or electronic channels.
The BSP also said that at least one board member or its equivalent in the case of branches of foreign banks and a senior manager should have at least three years of experience and technical knowledge in the operation of a company in the field of technology. or e-commerce.
The bank should also have an advanced electronic payment and financial services license for the identified material all-digital businesses and should have a composite IT rating of at least three, without any oversight issues. major raised by the BSP.
Regular banks that intend to market as a digital bank should first notify the BSP.
He said client banks, as well as their advertising agencies should incorporate into their contract for time and space with the media the condition that such a contract can be canceled or terminated immediately whenever the client bank is invited. by the BSP to refrain or discontinue a particular advertisement.
Earlier, BSP deputy governor Chuchi Fonacier said the regulator was assessing three digital banking license applications, while another company had also expressed interest.
“There are three applications currently underway, with another showing interest,” Fonacier told STAR.