Xendit, a B2B payment gateway, is participating in the Bangko Sentral ng Pilipinas’ (BSP) Open Finance Pilot as both provider and user of Application Programming Interface (API) technology.
Xendit will build a financial infrastructure that will facilitate the free flow of data among its existing partners and other stakeholders to achieve the full potential of an open finance ecosystem.
“Imagine we are creating a toolbox, wherein anywhere you are and whoever you are, you can utilize its contents and build upon them to solve your own problems,” said Jon Trinidad, head of Product Innovation at Xendit. “This is how we take capacity-building: by using technology to democratize services and ensure we do not leave behind the smaller financial institutions and the unbanked and underserved Filipinos.”
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According to the BSP, open finance will empower consumers to consent to the use of their personal and financial data to gain better access to credit and other financial products and services they can use to uplift their lives. In turn, financial institutions can use this permissioned-access data to create even more customized financial products and services that address actual market needs. This helps accelerate financial inclusion in the country, thus providing the unbanked, as well as micro, small, and medium enterprises, more visibility in the formal financial system.
Open finance pilot
The BSP’s Open Finance Pilot is currently ongoing and targeted to undergo evaluation by the end of the year. It features a holistic approach that covers not only the technology aspect involved in implementing open finance but also the policies that have to be drafted to ensure its success, including but not limited to consumer rights and data security.
Xendit was also part of the BSP’s Open Finance Oversight Committee Transition Group.
During this current phase, Xendit’s main contribution is its expertise in API design, characterized by a customer-centric approach. It has been providing insights with practical use cases that stem from its broad understanding of local customers.
On the backend side, it prioritizes legibility to empower stakeholders to understand use cases right away and be able to build services that provide more value for their own customers. This will also ensure that interoperability, one of the hallmarks of the open finance ecosystem, is efficiently achieved.