Digital Banks Philippines: KYC and Onboarding Rules
Digital banks in the Philippines are BSP-licensed banks that serve customers entirely through apps and online channels, without a branch network. BSP created the license in 2020 under Circular 1105, and since then seven digital banks held one as of July 2026, out of a cap of ten. Because every customer joins remotely, digital banks rely on eKYC: an ID check against official records, liveness detection, face matching, and screening, all done on the customer’s phone.
What a Digital Bank Is Under BSP Rules
BSP Circular 1105 (2020) set up digital banks as a distinct bank category. The idea, in short, was to let banks built on technology serve Filipinos who find branches too far, too slow, or too costly.
- Digital end to end. In other words, products and services are offered and processed through digital platforms and electronic channels.
- No branch network. A digital bank keeps a principal office but does not run physical branches the way universal or rural banks do.
- Full banking license. Also, unlike e-wallets, digital banks can take deposits, lend, and offer other banking services, subject to BSP rules.
- Higher capital. Finally, the framework set a minimum capital requirement well above that of rural banks.
Because the bank never meets customers face to face, identity verification carries the full weight of BSP’s customer due diligence rules. Therefore, the onboarding flow is not just a product feature; it is the bank’s main compliance control.
Licensed Digital Banks in the Philippines
After licensing the first six, BSP paused new applications. Then it lifted the moratorium from January 2025, allowing up to ten digital banks, and closed applications on 1 December 2025. So far, news reports as of July 2026 count seven licensees.
| Digital bank | Note |
|---|---|
| Overseas Filipino Bank | Government-owned, focused on OFWs |
| Tonik Digital Bank | Among the first digital bank licensees |
| UNOBank | Among the first digital bank licensees |
| UnionDigital Bank | Among the first digital bank licensees |
| GoTyme Bank | Among the first digital bank licensees |
| Maya Bank | Among the first digital bank licensees |
| MariBank | Seventh licensee, authorized in July 2026 after converting from a rural bank |
Meanwhile, BSP has said it will announce further licensees as applications clear review. So check BSP’s official list for the current count before relying on this table.
How Digital Banks Onboard Customers Remotely
Opening a digital bank account usually takes minutes. Yet behind that speed sits a carefully ordered set of checks.
- Download and register. First, the customer installs the app and confirms a mobile number and email.
- Capture an ID. Next, the app guides a photo of a valid ID, often the national ID, so OCR can complete the form.
- Validate the record. Then the bank confirms the details with official sources.
- Selfie with liveness. After that, the customer takes a selfie while the app checks for photos, screens, and injected video.
- Face comparison. Next, the bank scores the selfie against the card photo and also looks for faces already enrolled under other accounts.
- Screening and risk rating. Finally, screening runs the customer’s name through watchlists of sanctioned persons and PEPs, then assigns a risk level, which sets account limits.
Typically, digital banks start customers on lower limits and raise them as more information arrives. That tiered approach lets genuine users start quickly while the bank gathers proof for higher-risk activity.
BSP KYC and eKYC Requirements for Digital Banks
Digital banks follow the same anti-money laundering rules as other banks. Instead, what changes is how they meet them without a branch.
| Requirement | How digital banks typically meet it |
|---|---|
| Customer identification | ID capture, OCR, and record validation in the app |
| Face-to-face contact | BSP rules allow technology such as video or biometric checks in place of an in-person meeting |
| Risk-based due diligence | Tiered accounts, with enhanced checks for higher-risk customers |
| Ongoing monitoring | Real-time transaction monitoring and periodic profile refresh |
| Record-keeping | Digital case files with images, results, and timestamps |
| Account protection | Fraud management systems and safeguards under AFASA and Circular 1213 |
AFASA (RA 12010) added new duties in 2024, including real-time fraud monitoring and limits on authentication that scammers can intercept. So digital banks now need strong identity checks both at sign-up and later, whenever an account changes hands or devices. For the baseline that applies to every bank, read our summary of BSP KYC rules.
Fraud Risks: Mule Accounts, Deepfakes, and Account Takeover
Of course, fast, branchless onboarding attracts fraudsters as much as customers. Digital banks report three main threats.
- Mule accounts. First, scam networks recruit or pay people to open accounts that receive stolen funds, as our look at money muling explains.
- Deepfakes and spoofs. Second, attackers use printed photos, replayed video, or synthetic faces injected into the camera feed. For the technique, see our report on deepfake fraud.
- Account takeover. Third, scammers trick customers into sharing access, then move the balance out within minutes.
Each threat targets a different moment. Mules and deepfakes strike at sign-up, whereas takeover strikes later. Therefore, the identity stack must cover the whole account lifecycle rather than onboarding alone.
The Identity Stack: OCR, Liveness, Face Match, Screening
Most digital banks combine five layers. Each layer answers one question, so and together they make remote onboarding defensible.
| Layer | Question it answers | When it runs |
|---|---|---|
| OCR | What does the ID say? | Sign-up |
| Record validation | Do official sources confirm it? | Sign-up |
| Liveness | Is a real person present now? | Sign-up and step-up |
| Face match and search | Does the face fit the ID, and is it already on another account? | Sign-up and step-up |
| Screening | Is the customer a PEP or on a sanctions list? | Sign-up and on list updates |
Verihubs face recognition and liveness covers the biometric layers for Philippine apps, including duplicate face search, while the Verihubs ID check covers four government sources, from PhilSys to the NBI. Banks can also explore the full sector offering on our banking solutions page.
Still, step-up checks deserve as much design effort as onboarding. For instance, ask for a live selfie when a customer registers a new phone, raises a transfer limit, or sends a large amount to a new recipient. That one control blocks many takeovers, because a scammer on the phone cannot hand over the customer’s face.
What Banks Planning a Digital Launch Should Prepare
Similarly, traditional banks launching digital arms, and applicants waiting for licenses, can prepare the identity layer early.
- Map each BSP requirement to a control, so examiners can trace every rule to a check and its evidence.
- Pilot with real customers and devices, especially entry-level Android phones and weak provincial connections.
- Define tiers and limits before launch, then link each tier to specific checks.
- Build the review queue with clear rules for partial matches and record mismatches.
- Measure completion and fraud together, since optimizing one alone usually hurts the other.
Frequently Asked Questions
How many digital banks are there in the Philippines?
As of July 2026, news reports counted seven BSP-licensed digital banks, with MariBank the latest. BSP allows up to ten, so check its official list for newer approvals.
Are digital banks in the Philippines safe?
Yes, in the regulatory sense. Licensed digital banks are supervised by the BSP like other banks, and deposits are covered by PDIC insurance up to the legal limit. Customers should still protect their login details and devices.
Which IDs work for opening a digital bank account?
Typically, digital banks accept the PhilID, a passport, driver’s license, or UMID, plus a live selfie taken in the app.
How do digital banks verify identity without a branch?
They combine ID capture and OCR, validation against official records, liveness detection, face comparison, and screening. After all, BSP rules allow such technology in place of an in-person meeting.
What is BSP Circular 1105?
It is the 2020 BSP circular that created the digital bank category, setting out how digital banks are licensed, capitalized, and allowed to operate.
Remote by Design, Verified by Default
Digital banks exist because BSP decided Filipinos should be able to bank without a branch. However, that promise works only if remote onboarding is as trustworthy as a teller window. So the banks that grow safely validate IDs with official records, prove liveness, match and search faces, screen customers, and repeat the biometric checks whenever an account’s risk changes.
Preparing a digital bank launch or upgrading your onboarding? Plan your identity stack with Verihubs before the next examination.
