Bangko Sentral ng Pilipinas

Filipino fintech founders face an impossible choice. Move fast and risk violating regulations you don’t fully understand—potentially facing fines, shutdowns, or criminal liability. Or move slowly through bureaucratic approval processes that take years while competitors launch and customers go unserved. Either way, you lose—and so do the millions of Filipinos who need better financial services.

Traditional regulation wasn’t designed for digital innovation. Banks took decades to build, so regulators had time to develop rules. But fintech moves at internet speed—launching products in months, iterating weekly, serving customers regulators have never considered. Existing rules don’t fit. Applying for full banking licenses costs millions and takes years. Operating without approval risks prosecution. And underserved Filipinos—rural communities, informal workers, MSMEs, disaster survivors—can’t wait.

The Bangko Sentral ng Pilipinas is offering PHP ₱45 million (roughly $800,000 USD) in grant credits and regulatory support to help fintech companies test inclusive financial solutions in a controlled environment. This regulatory sandbox provides technology hardening support, user protection resources, climate and inclusion analytics, and compliance guidance. The goal is enabling responsible fintech innovation that reaches underserved Filipinos while protecting consumers and maintaining financial stability.

For Filipino fintech companies with operational prototypes, this sandbox provides grants for testing plus expedited regulatory guidance. You’re not just getting money—you’re getting direct access to regulators, permission to test innovations that might otherwise be prohibited, and a pathway to full authorization if your solution works.

What makes this sandbox distinctive is its focus on inclusive finance and climate resilience. You’re not just building profitable fintech—you’re serving poor and vulnerable Filipinos, incorporating climate risk features, and demonstrating that financial inclusion and consumer protection can coexist.

At a Glance

What This Support Covers

The PHP ₱45 million supports responsible fintech testing:

Technology Hardening (PHP ₱18 million): Regulators need confidence your platform is secure and scalable. This component funds security audits identifying vulnerabilities, infrastructure scaling ensuring systems handle growth, compliance automation reducing manual regulatory reporting, and penetration testing simulating attacks. Robust, secure platforms ready for regulatory approval reduce risk of breaches or failures that harm consumers.

User Protection and Education (PHP ₱12 million): Fintech can harm vulnerable users if not designed carefully. This funding supports consumer testing with low-literacy and rural users, financial literacy campaigns explaining products and risks, grievance systems enabling customers to report problems, and transparent pricing and terms. Informed customers and reduced risk of harm build trust and prevent exploitation.

Climate and Inclusion Analytics (PHP ₱9 million): Serving underserved markets requires understanding their needs. This component funds data models capturing climate risk (typhoons, floods, droughts), gender analytics showing how women use financial services differently, MSME insights understanding small business needs, and vulnerability mapping identifying who needs protection. Evidence-based product adjustments for vulnerable users ensure solutions actually work for them.

Compliance and Legal (PHP ₱6 million): Navigating regulation is expensive and complex. This funding supports legal counsel advising on compliance, licensing fees for required approvals, regulatory reporting systems automating submissions, and policy engagement helping shape future rules. Faster transitions to full regulatory authorization enable scaling beyond the sandbox.

Beyond the direct funding, selected fintechs get regulatory clinics on licensing, consumer protection, and data privacy, cybersecurity testing and incident response planning, human-centered design support for low-literacy and rural users, and impact measurement guidance covering inclusion and climate resilience.

Who Should Apply

This sandbox is for fintechs ready to test responsibly. You’re a good fit if:

You’re a Registered Filipino Fintech Company: You must be registered in the Philippines (corporation, partnership, or cooperative), focused on financial technology (digital credit, insurance, savings, payments, remittances, etc.), and have operational prototype with initial customers. Pure ideas without working products aren’t eligible—you need something to test.

You’re Serving Underserved Markets: The sandbox prioritizes inclusion. You need clear inclusion metrics (rural reach, women users, informal workers, MSMEs, etc.), evidence your solution addresses unmet needs, affordability for low-income users, and accessibility for low-literacy or non-tech-savvy users. Fintechs serving only wealthy urban customers aren’t the priority.

You Have Strong Consumer Protection: This isn’t optional. You need transparent pricing and terms customers can understand, dispute resolution mechanisms for complaints, data privacy compliance with Philippine laws (Data Privacy Act), and fraud prevention and customer support systems. Fintechs that exploit or harm users won’t be approved.

You Have Risk Management: You’re handling people’s money—risk management is critical. You need risk management framework identifying potential harms, incident response plans for breaches or failures, cybersecurity measures protecting customer data and funds, and compliance with anti-money laundering (AML) and know-your-customer (KYC) rules. Weak risk management disqualifies you.

You Can Demonstrate Climate Resilience Features (Optional but Preferred): Climate change affects Filipino finances—typhoons destroy livelihoods, droughts hurt farmers, floods damage businesses. You’re more competitive if you have disaster insurance or parametric products, adaptive credit adjusting terms after climate events, savings products building resilience, or climate risk data helping users prepare. Climate features aren’t required but strengthen applications.

Insider Tips for a Winning Application

Demonstrate Clear Inclusion Metrics: Don’t just claim you serve the poor—prove it. Show percentage of customers in rural areas, percentage of women users, percentage of informal workers or MSMEs, average income or transaction size of customers, and comparison to traditional financial services. Specific, quantified inclusion metrics are more credible than vague claims.

Highlight Climate Resilience Features: Climate is a priority for BSP. Show how your product helps users manage climate risk—insurance payouts after typhoons, credit forbearance after disasters, savings goals for climate adaptation, or data helping farmers plan for weather. Climate features differentiate you from competitors.

Plan for Responsible AI and Fraud Prevention: If you use AI for credit scoring, fraud detection, or personalization, show how you prevent bias, ensure explainability, and protect against discrimination. Also show fraud prevention measures—transaction monitoring, identity verification, customer education. Responsible AI and fraud prevention build regulator confidence.

Outline Co-Creation with Cooperatives, Banks, or Telcos: Partnerships strengthen applications. Show partnerships with cooperatives serving members, banks providing backend infrastructure or capital, telcos enabling mobile access, or NGOs reaching vulnerable communities. Partnerships demonstrate you’re not working in isolation.

Map Path to Profitability While Maintaining Affordability: Regulators want sustainable businesses, not charities that collapse. Show your business model—revenue sources, cost structure, path to profitability, and how you’ll maintain affordability for low-income users. Sustainable businesses that serve the poor are the goal.

Show User-Centered Design: Underserved users have different needs. Show how you’ve designed for low-literacy users (icons, voice interfaces, simple language), non-tech-savvy users (onboarding support, customer service), and users with limited smartphone access (USSD, SMS, offline features). User-centered design prevents exclusion.

Application Timeline

Sandbox cohorts operate for 12 months with iterative supervision and monthly learning sessions. Here’s a realistic timeline:

January 2025: Prepare sandbox application including business plan, product description, customer data, risk management framework, and compliance documentation. This is detailed work—start early.

February-March 2025: Finalize application, get legal review, and submit by April 7 deadline.

March 2025: If shortlisted, present live demo and risk mitigation plan to sandbox committee. You’ll demonstrate your product, explain how you protect consumers, and answer tough questions.

April-May 2025: Receive sandbox approval decision. If approved, finalize testing parameters, reporting requirements, and support plan with BSP.

May 2025: Commence live testing with real customers under sandbox supervision. You can test innovations that might otherwise require full licensing.

June-October 2025: Continue testing, submit monthly reports, participate in learning sessions with other sandbox participants, and iterate based on feedback.

November 2025: Participate in midterm evaluation and regulatory dialogue. BSP reviews your progress, consumer protection record, and inclusion metrics.

December 2025-April 2026: Continue testing, refine based on midterm feedback, and prepare exit documentation.

May 2026: Exit sandbox with regulatory decision. BSP decides whether to grant full authorization, require modifications, or deny authorization. You also get scaling roadmap for next steps.

Frequently Asked Questions

Can foreign companies apply? Foreign companies must be registered in the Philippines and have local operations. Pure foreign entities without Philippine registration aren’t eligible.

What if we don’t have customers yet? You need an operational prototype with at least some initial customers (even if just a pilot). Pure concepts without any real-world testing aren’t eligible.

Can we test products that would normally require a banking license? Yes, that’s the point of the sandbox. You can test innovations that might otherwise be prohibited, as long as you have strong consumer protection and BSP approval.

What happens if something goes wrong during testing? You must report incidents immediately. BSP may require you to pause testing, fix issues, or compensate affected customers. Honest reporting and quick response are expected.

Can we charge customers during sandbox testing? Yes, but pricing must be transparent and affordable. Exploitative pricing will get you removed from the sandbox.

What if we don’t get full authorization after the sandbox? BSP may require modifications before granting authorization, or may deny authorization if your solution doesn’t work or harms consumers. Not all sandbox participants get full authorization—that’s why testing is important.

Can we apply again if rejected? Yes, you can reapply in future cohorts if you address the reasons for rejection.

How to Apply

Ready to test your fintech responsibly? Here’s what to do:

Step 1: Confirm eligibility. Are you a registered Filipino fintech? Do you have an operational prototype? Do you serve underserved markets? Do you have strong consumer protection? If yes, proceed.

Step 2: Prepare your business plan including product description, target market, business model, and growth projections.

Step 3: Document your consumer protection measures including transparent pricing, dispute resolution, data privacy compliance, and fraud prevention.

Step 4: Develop your risk management framework including risk identification, incident response plans, cybersecurity measures, and AML/KYC compliance.

Step 5: Gather customer data showing who you serve including demographics, inclusion metrics, and user feedback.

Step 6: Prepare technical documentation including system architecture, security measures, and scalability plans.

Step 7: Assemble application with all required components: sandbox application form and business plan, risk management and compliance documentation, technical architecture and cybersecurity assessments, consumer protection protocols and disclosures, partnership agreements with financial institutions (if any), and customer data and inclusion metrics.

Step 8: Submit by April 7, 2025 through BSP portal.

Step 9: If shortlisted, prepare for live demo. Practice demonstrating your product, explaining consumer protection, and answering regulator questions.

Visit the official Philippines Inclusive Fintech Regulatory Sandbox page for detailed guidelines and application materials: https://www.bsp.gov.ph/SitePages/Default.aspx

Questions about eligibility, consumer protection requirements, or sandbox parameters? Contact Bangko Sentral ng Pilipinas—contact information is available on their website.

Fintechs that embed inclusion and resilience can scale nationally while shaping progressive regulation. If you’re ready to serve underserved Filipinos responsibly, this sandbox can help you succeed.