CIMB Bank rules out pursuit of BSP digital bank license

MANILA, Philippines — CIMB Bank Philippines will not be pursuing a digital bank license from the Bangko Sentral ng Pilipinas (BSP), choosing instead to expand its digital banking operations under its existing commercial banking license.

The bank, however, remains open to exploring other banking segments in the future, including Islamic banking.

“We are comfortable with the commercial banking license at the moment because it gives us the ability to offer other services,” Vijay Manoharan, CEO of CIMB Bank Philippines, said.

As a full-fledged universal bank in all its operating countries, he said that CIMB has the flexibility to explore various banking offerings in the Philippines when the time is right.

“Maybe in the future, we can consider trade financing, wholesale and corporate banking as well as advisory and investment banking. But today, we focus on one business client and aim to do it well.”

He also noted that CIMB’s strategy allows it to support cross-border banking needs, connecting Malaysian companies operating in the Philippines and vice-versa. This is its strategy with other countries such as Thailand, Singapore and Indonesia as well.

Manoharan’s statement followed the BSP’s announcement of lifting the moratorium imposed on the granting of digital banking licenses starting Jan. 1, 2025.

The six digital banks operating in the country are Maya Bank, Overseas Filipino Bank Inc., Tonik Digital Bank Inc., UNObank Inc., UnionDigital Bank and GOtyme Bank.

Meanwhile, CIMB said Islamic banking is a potential area of growth, but it is not currently a priority for the bank. However, the bank has engaged in discussions with the BSP.

“The expertise and the brains for Islamic banking are in the group. Whenever the BSP wants to engage, we bring in the group for market research and opportunity sizing,” he said.

In Malaysia, CIMB offers a full range of Islamic banking services. This includes savings accounts, loans and bond offerings. The bank is exploring how it can contribute to this segment in the Philippines, particularly in Mindanao.

As of end-November, CIMB Bank Philippines recorded nearly nine million customers, marking a significant milestone since the bank entered the market in 2018.