Following the introduction of its Open Finance Framework, the Bangko Sentral ng Pilipinas (BSP) anticipates the development of more client-centric financial products in the country.
Open Finance, according to its statement released Friday, supports a consent-based data sharing program that encourages collaborative partnerships between legacy financial institutions (FIs) and new players who adhere to the same security and privacy standards Datas.
“The framework sees customers as the owners of their transaction data, which can be shared if they choose. With more data being shared, FIs and third parties are encouraged to embrace a customer-centric product development cycle, ”said Benjamin, Governor of BSP. Diokno was quoted as saying.
He explained, “For example, your main banking app may insert a feature that allows you to add accounts from your other banks to help you monitor all of your accounts. Your investment app may also allow you to add your bank account so you can see how much you can invest in. This is the promise of open finance.
Banks and third-party providers will be able to create a wider range of financial products, including banking products and services, investments, pensions and insurance, with better access to customer data, the central bank noted.
The Open Finance Framework is a component of BSP’s Digital Payments Transformation Roadmap, which aims to convert at least 50% of total retail payments to digital form and integrate at least 70% of Filipino adults into the system. financial. It was introduced under Circular 1122, which was issued in June of this year.
Bangko Sentral announced earlier that it was helping form an industry-led stand-alone Open Finance Oversight Committee (OFOC) that would develop its own rules for membership, participation, procedures and adoption of open finance standards.
“OFOC will include representatives from banks of each classification: universal / commercial, savings, rural and digital; non-bank financial institutions, electronic money issuers, payment system operators and other relevant sectors, ”said Diokno.
The committee will establish its own standards and procedures as well as rules for membership and participation.
He added that OFOC will support non-discriminatory membership by ensuring that important financial sector interests are sufficiently represented and that all participants and applicants for membership are treated fairly and consistently.
“With the committee and framework in place, we hope to further fill the digital connectivity gaps in the country with the help of our stakeholders,” said the head of the central bank.