BSP Governor Benjamin Diokno said the Monetary Board has issued a resolution approving the adoption of the Open Finance Framework to serve as a key enabler for digital transformation and financial inclusion. MANILA, Philippines — The Bangko Sentral ng Pilipinas has approved the guidelines on the sharing of customers’ financial data as part of efforts to promote an inclusive and sustainable recovery for the country.
The framework recognizes that advances in technology will facilitate the development of products and services for all Filipinos using their own consumer data.
“Open finance is definitely not a sprint but a marathon. It will be a long and challenging run, but just like any other sport, we need to properly prepare and condition ourselves to finish strong in this race,” Diokno said.
It promotes consent-driven data portability, interoperability and collaborative partnerships between financial institutions and fintech players.
Likewise, consumers will have the power to grant access to their financial data that will shape a customer-centric product development objective.
“It is the thrust of the BSP to promote an enabling environment that fosters innovation, encourages competition, and advances financial inclusion while guarding the integrity and stability of financial system,” Diokno said.
Under its three-year Digital Payments Transformation Roadmap, the BSP has committed to raise the number of Filipino adults with bank accounts to 70 percent by 2023.
The regulator expects a tiered implementation of the framework based on data sensitivity, and types of data and data holder. The tiers are not necessarily sequential, and multiple implementations may occur at the same time.
“This initiative will bring us closer to our goal of promoting an inclusive and sustainable recovery and growth for the country,” Diokno said.
The first tier involves sharing of product and service information and other details of financial products/services that are already readily accessible online, followed by the second tier covering the sharing of subscription and new account applications information.
The third tier involves sharing of account information or personal and financial information provided by a customer, while the fourth tier covers transactions data, such as payments and other financial transactions data.
The last or fifth covers those not covered by previous tiers and other more complex financial products or use cases.
Diokno said an industry-led body under the supervision of the BSP, the Open Finance Oversight Committee (OFOC), is tasked to exercise governance on the activities and participants of the Open Finance ecosystem.
The committee is expected to promote non-discriminatory membership by ensuring that key areas of interest of the financial industry are adequately represented in the committee and that all members and applicants for membership are treated fairly and consistently.
The framework is informed by the results of an industry survey conducted by the BSP, consultations with global subject matter experts, and comparative study of regulatory landscape in other jurisdictions.
Diokno said all BSP-supervised financial institutions are required to comply with the applicable requirements under the Application Programming Interfaces (APIs) or set of rules and specifications for software programs to communicate with each other within one year from the effectivity of the guidelines.
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