The lifting of the ban on new online lending licenses is set to take effect in April, nearly four years after the Securities and Exchange Commission (SEC) first imposed a freeze on digital finance platforms.
The move aims to stimulate competition, lower borrowing costs, and expand credit access within the Philippines’ rapidly growing fintech sector.
Commissioner Rogelio Quevedo highlighted that the regulator is now better equipped to oversee the industry, following the May 2021 suspension triggered by consumer complaints regarding scams and aggressive collection practices.
“The borrowing landscape has shifted almost entirely to digital channels,” Quevedo noted during a recent fintech roundtable.
SEC ends moratorium to modernize digital lending
By opening the market to new players, the commission anticipates an influx of capital and technology that could increase options for Filipino borrowers while naturally driving down interest rates.
The regulator is also exploring blockchain-based frameworks to modernize credit data sharing, addressing the challenge of fragmented credit histories that currently force lenders to charge high-risk premiums.
Industry leaders, including Salmon’s Raffy Montemayor and Pavel Fedorov, stressed the importance of a government-mandated, standardized data-sharing framework, citing Cambodia as a regional example of successful regulator-enforced APIs.
Michelle Anne Chan of ADVANCE.AI added that artificial intelligence will play a key role in securely consolidating credit data, enabling lenders to price risk more accurately.
If successfully implemented, the end of the moratorium on online lending could mark a major evolution in Philippine digital finance, fostering a competitive, transparent, and more inclusive ecosystem.
