Digido Finance Corporation has formally submitted a motion for reconsideration in response to the Securities and Exchange Commission (SEC) of the Philippines' decision to cancel its financing license.

The SEC’s cancellation was based on allegations that Digido had opened and operated four branches without the requisite certificate of authority.

These locations included exhibit booths in Bacoor, Kawit, Dasmariñas, and General Trias, all situated in the province of Cavite.

The SEC's directive, issued on May 9, 2025, followed a comprehensive evaluation by its Financing and Lending Companies Department (FinLenD).

The commission's decision referenced a temporary installation of these exhibit booths in 2021. According to Digido, the company has presented evidence to the SEC indicating that these booths were solely intended for marketing purposes and did not constitute permanent offices.

Digido expressed its respect for FinLenD's regulatory mandates but characterized the cancellation order as a departure from previously established facts.

The company emphasizes its commitment to serve the financially underserved populations in the Philippines, asserting that the exhibit booths were not branches but marketing setups that were temporary in nature.

In its findings, the SEC determined that Digido's actions contravened Section 6(A) of the Implementing Rules and Regulations of the Financing Company Act of 1998, which prohibits financing companies from establishing or operating a branch or any other office without prior approval from the commission.

Subsequently, this led to the revocation of Digido's certificate of authority and primary registration.

Prior to the license cancellation, the SEC had issued show cause letters to Digido, seeking clarification on the operation of the aforementioned exhibit booths.

Digido maintained that these booths were established for only one month and were too small to be classified as branches.

However, the SEC noted that the nature of the exhibit booths extended beyond mere marketing, highlighting that social media posts by Digido advertised loan processing capabilities directly from these locations, suggesting that the booths were indeed functioning as operational branches.

The SEC pointed out that the promotion of services, including the offer of cash loans processed in as little as 10 minutes, indicates an intent by Digido to operate these booths as branches.

Consequently, the SEC concluded that marketing claims undermined Digido's position that the setups were only temporary and not subject to regulatory obligations.

The commission reiterated that without a valid certificate of authority, the operation of these exhibit booths contravened regulatory requirements.