BSP Circulates Proposal for an Open Banking Framework in the Philippines
The Bangko Sentral ng Pilipinas (BSP) released a proposal to stakeholders about an open banking framework as part of the regulator’s three-year digital payments transformation program.
The BSP Digital Payments Transformation Roadmap for 2020-2023 aims to boost financial inclusions and transform the Philippines from a cash-heavy economy to a cash-lite economy.
BSP Director for Technology, Risk, and Innovation Supervision Department Melchor Plabasan states that the regulator is currently seeking the comments of major stakeholders in the planned adoption of the open banking framework.
According to BSP, moving forward with Financial Technology (Fintech) ecosystems that support consent-driven data portability, interoperability, and collaborative partnerships with formidable financial institutions and fintech players, will significantly benefit the country.
BSP also recognizes the transformative benefits such measures can provide by extending permitted data and third-party access to a wider variety of financial sectors and products.
BSP announced, “In seeking to establish an open finance ecosystem, the BSP hopes to involve industry players and engage them in an active dialogue to facilitate mutual learning and optimal determination of an industry-led self-governing body or authority, which is expected to promulgate membership and participation rules and formulate standards and procedures for the industry.”
BSP released the first draft of the program for public consultation to show its regulatory strategy and collaborate with key industry players to support new financial products’ development and access to new financial products towards fostering broad-based and inclusive economic growth.
The National Privacy Commission (NPC) and other regulatory agencies will conduct the consultation.
The stakeholders have until December 23 to submit their comments that would be used to enhance the proposed framework.