The Philippine National Bank board approved on July 7 the the conversion of Allied Integrated Holdings, Inc. (formerly PNB Savings Bank) into a digital bank subject to regulatory and other necessary approvals.
Tan decided to fold in PNB Savings Bank into its parent in 2018 specifically the thrift subsidiary’s 63 branches and its consumer lending business. PNB Savings Bank used to be sixth biggest thrift bank in the Philippines with assets of P61.8 billion as of end-2018.
The merger was approved in 2019 and completed in March 2020. A few months later, PNB president Wick Veloso was blaming the merger with the thrift bank for the surge in PNB’s non-performing loans.
Digital banks, required to have a minimum capital requirement of P1 billion, offer no fuss banking with all services done online. The Bangko Sentral ng Pilipinas has allowed existing banks to apply for a conversion to digital bank.
The current digital bank licensees are Overseas Filipino Bank, Tonik Digital Bank, Inc. (Philippines), and UNOBANK. The Aboitizes’ Union Bank of the Philippines and the Yuchengcos’ Rizal Commercial Banking Corp. have a pending application for digital banking license.