Global Fintech Innovations Inc (Mynt), the Alibaba-backed parent company of the Philippines’ major finance super app GCash, is reportedly looking at the possibility of applying for a digital banking licence in the country.
In an interview with Bloomberg, Mynt CEO Martha Sazon said applying for a digital banking license is being discussed although nothing definite has been agreed at the moment.
The possibility of Mynt applying for a digital banking licence for GCash comes as the country’s central bank, the Bangko Sentral ng Pilipinas (BSP), has lifted a moratorium on establishing digital banks in the Philippines, with plans to accept four more digital lenders.
The BSP said it would allow a maximum of 10 digital banks to operate in the country, from the current six, as part of the government’s efforts to promote financial inclusion and digital transformation.
The Philippines has six digital banks—Tonik, Overseas Filipino Bank, Union Digital Bank, Uno Digital Bank, GoTyme Bank, and Maya Bank.
Mynt also recently secured additional investment from Philippine-listed conglomerate Ayala Corporation and Japan’s largest banking group Mitsubishi UFJ Financial Group (MUFG), valuing the company at approximately $5 billion.
Ayala Corporation said it has acquired an additional 8% stake in Mynt while MUFG disclosed an additional 8% stake acquisition in the company.
Mynt is the parent company of GCash, the ubiquitous finance super app in the Philippines with over 90 million active users. GCash is a joint venture between Alibaba’s Ant Group, Ayala Corporation, and Globe Telecom, through its corporate venture builder 917Ventures.
