BSP launches Open Finance PH pilot

THE Bangko Sentral ng Pilipinas (BSP) on Wednesday officially launched the Open Finance PH pilot to promote financial inclusion and collaboration among financial institutions.

This initiative will assist unbanked people in developing a financial profile and credit history, allowing them to have access to loans and other services that were previously unavailable to them.

“The Pilot is a voluntary undertaking of financial institutions to co-develop an open, interoperable and scalable ecosystem that empowers consumers to take more control over their financial data and enable them to access a range of financial products and services from different providers,” the BSP said in a statement.

The central bank said the Pilot will be open to eligible BSP-Supervised Financial Institutions. This is the next stage in the execution of the Revised Open Finance Roadmap (2023-2027), which outlines the BSP’s revised priority activities in the country’s adoption of open finance.

“With Open Finance PH, we are taking a big step toward unlocking equal access to financial services for all Filipinos and building a cyber-resilient and open digital economy,” said BSP Governor Felipe Medalla.

The central bank also announced the official start of registration for the Open Finance PH Pilot, which is based on the recommendation of the Open Finance Oversight Committee Transition Group and a sub-working group.

“The Open Finance PH Pilot, which will operate through the support of the IFC (International Finance Corp.), will inform the development of open finance technical and operational standards and arrangements,” the BSP said.

“For existing bank customers and micro, small and medium enterprises (MSMEs), this opens up a world of products and services that better suit their needs, from tailored payment schemes to hyper-personalized investment recommendations,” it added.

The central bank emphasized that this initiative gives MSMEs more control over their data, “as they will have to give consent before their information is shared.”

Accordingly, banks, fintech (finacial technology) firms and other third-party providers may more effectively analyze credit risk, lowering costs and opening up new income sources. It will be easier to increase the client’s lifetime value.

“This puts the Philippines on the map when it comes to open finance,” said Jean-Marc Arbogast, country manager for IFC Philippines.

“It positions the country right alongside more advanced markets like Singapore, the United Kingdom and the European Union, all of whom catalyzed innovation by championing open banking initiatives,” Arbogast added.

This Press Release has also been published on VRITIMES