BSP calls on BFSIs to join open finance standards consultation

The Bangko Sentral ng Pilipinas (BSP) will soon begin consultations for the “PH Open Finance Pilot” in crafting the development of open finance technical and operational standards and arrangements.

In 2021, BSP released the Open Finance Framework for financial services institutions (FSIs).

Through open finance, the banking, financial services, and insurance (BFSI) sector and third-party providers (TPP) can share data — as approved by clients — to develop financial solutions and promote transparency to account holders. Open finance will enable marketing and cross-selling opportunities for FSIs.

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“We call on our BSFIs and third-party providers to proactively take part in the development of technical and operational standards and arrangements and carefully scrutinize the fundamental elements necessary in the establishment of a vibrant open finance ecosystem in the country,” said Bangko Sentral Governor Felipe Medalla, in a media advisory.

The PH Open Finance Pilot is a collaborative undertaking of financial institutions and third-party providers, participating on a voluntary basis, to explore the use of Application Programming Interface (API) technologies in the delivery of financial products and services responsive to the needs of customers.

The BSP also said that it hopes to promote a responsive, inclusive, and responsible digital financial ecosystem that is characterized by innovation-driven use of consumer data through the PH Open Finance Pilot.

The activities of the PH Open Finance Pilot, which will operate through the support of the International Financial Corporation (IFC), will be governed pursuant to Circular No. 1122, and monitored by the Open Finance Oversight Committee Transition Group (OFOC TG).