Digido Finance Corp., the entity behind the popular online lending platforms Digido and UnaCash (which also operates UnaPay), has issued a strong denial regarding the official revocation of its financing license and primary registration by the Securities and Exchange Commission (SEC).
The company, through an official statement, categorically refutes claims of having opened or operated four branches in 2021 without obtaining the necessary certificate of authority from the SEC.
The SEC’s Financing and Lending Companies Division (FinLenD), in an order dated May 9, 2025, ruled that Digido Finance Corp. had violated Section 6(A) of the Implementing Rules and Regulations of Republic Act No. 8556, also known as the Financing Company Act of 1998. This law explicitly prohibits any financing company from establishing or operating a branch, agency, extension office, or similar unit without first securing a Certificate of Authority from the Commission.
Following this ruling, FinLenD moved to revoke the Certificate of Authority previously granted to Digido Finance Corp., effectively cancelling its license to operate as a financing company. The company’s primary SEC registration has also been revoked.
In a formal statement released last May 27, and to be attributed to Digido Finance Corp., the company articulated its position clearly:
STATEMENT: Digido Finance Corp. denies opening and/or operating branches, says company has factually established that exhibit booths, which were not permanent, cannot be treated as branches under existing laws and regulations
“Digido Finance Corp. categorically denies having opened or operated four (4) branches without obtaining the necessary certificate of authority from the Securities and Exchange Commission.
“The Order from the SEC’s Financing and Lending Companies Department (FinLenD) dated May 9, 2025, following careful review, anchored its decision on Digido’s temporary setup of four (4) exhibit booths in 2021. However, the company was able to factually establish to the Commission that exhibit booths were only set up for marketing purposes — not a form of any permanent office or place of business.
“While we respect and share FinLenD’s inherent thrust to promptly regulate financing and lending companies in the Philippines, the Company respectfully views this Order as a deviation from earlier established facts.
“We have since coordinated with FinLenD regarding this matter and have filed a motion for reconsideration aimed to undo this decision and continue the Company’s mission in serving the country’s financially underserved.”
The statement underscores the company’s commitment to strict adherence to regulatory guidelines in all its business practices. According to Nikeia Salazar of UnaCash, the company’s transparency and responsible lending practices remain paramount even as they contest the recent SEC decision.
Digido challenges SEC ruling, cites marketing vs. branch, digital-first distinction
The core of Digido Finance Corp.’s argument hinges on the distinction between temporary marketing setups and permanent branch operations. Exhibit booths, by their nature, are designed for short-term engagement, typically at events, malls, or public spaces, aimed at brand promotion and customer engagement rather than functioning as full-fledged, ongoing service centers.
The company emphasizes that its operations are primarily digital, leveraging online platforms to reach and serve the financially underserved segments of the Philippine population.
Digido Finance Corp. has already initiated steps to address the FinLenD Order, confirming that it has been in coordination with the department regarding this matter.
A motion for reconsideration has been formally filed, signaling the company’s intent to pursue all available legal avenues to overturn the decision and continue its mission without disruption. The company remains focused on its commitment to providing accessible financial services to Filipinos who may otherwise lack access to traditional banking facilities.
This development highlights the ongoing scrutiny within the rapidly evolving digital lending landscape in the Philippines. As online financial services expand, regulatory bodies like the SEC are actively working to ensure compliance and consumer protection.
The SEC reiterates its commitment to maintaining a fair and transparent financial ecosystem and urges financing and lending companies to strictly comply with the regulatory requirements set forth under existing laws. Digido Finance Corp. expresses its respect for FinLenD’s regulatory thrust but maintains its position that the temporary nature of the exhibit booths was not appropriately factored into the decision.
For UnaCash and Digido, this situation is not just about a specific regulatory interpretation but also about upholding their reputation as compliant and responsible lending platforms. Their public statement aims to clarify the factual basis of their operations and reassure their users and partners of their commitment to serving the country’s financially underserved population.
The company remains confident that the facts presented in their motion for reconsideration will lead to a favorable resolution, allowing them to continue their vital work in financial inclusion.