By Edielyn Mangol, Reporter
UnionBank of the Philippines has taken another bold step in advancing financial inclusion by joining the Open Finance for PERA (OFxPERA) pilot. The initiative, spearheaded by the Bangko Sentral ng Pilipinas (BSP) in collaboration with fintech players and financial institutions, introduces a simplified way for Filipinos to open Personal Equity and Retirement Accounts (PERA) using digital platforms.
By leveraging Open Finance frameworks and consent-based data sharing, OFxPERA removes the traditional barriers of long forms, multiple IDs, and branch visits. Instead, users can authorize the secure transfer of their existing KYC (Know-Your-Customer) information from their bank or e-wallet to instantly open a PERA account.
UnionBank’s participation underscores its commitment to empowering Filipinos to take control of their financial future, while also positioning itself as a leader in the next wave of Open Finance adoption.
How the OFxPERA pilot works
At its core, the OFxPERA pilot relies on Open Finance standards, where customers can safely share their verified financial data across participating institutions through explicit consent.
Photo shows (from left:) Winsley Bangit, VP and group head for new businesses ; Reginaldo B. Cariaso, president and CEO of RCBC; Ana Maria A. Delgado, president and CEO of Union Bank of the Philippines; Phillip Hagedorn, president and chief investor engagement officer, Atram Trust Corp.; Edwin R. Bautista, president and CEO of Philippine National Bank; Eli M. Remolona Jr., Governor of the Bangko Sentral ng Pilipinas; Angelica S. Reyes, EVP and head of Metrobank Trust Banking Group; Shailesh Baidwan, group president of Maya Philippines Inc.; Alan V. Bornas, EVP – operations sector of Land Bank of the Philippines; Manuel Patricio C. Malabanan, trust officer of BDO Unibank Inc., and Ma. Theresa Marcial, president of BPI Asset Management and Trust Corp.
Traditionally, opening a PERA account requires tedious processes — manual paperwork, photocopied IDs, in-person verification, and back-and-forth communication. This complexity discouraged many Filipinos from availing of a product that could help them grow retirement savings with tax incentives.
The pilot addresses this gap by introducing a digital-first onboarding journey. Users simply log into their preferred app—whether UnionBank’s or another accredited provider — then grant permission for their existing KYC profile to be shared. In minutes, the system verifies eligibility and sets up a PERA account without redundant steps.
For Filipinos abroad or those living in underserved areas, this model is transformative. It brings retirement planning within reach for those who may not have access to physical bank branches or who lack the time for paperwork.
Why open finance matters in PH fintech ecosystem
PERA was first launched in 2016, envisioned as a voluntary, tax-advantaged retirement savings scheme. Yet, uptake has been slow. Only a few thousand accounts have been opened nationwide, far below expectations. Analysts point to cumbersome enrollment processes, low awareness, and limited distribution channels as reasons.
The OFxPERA initiative directly tackles these pain points by making onboarding fast, digital, and user-friendly. It aligns with the BSP’s broader agenda of fostering digital inclusion and pushing for a more financially secure Filipino population.
More importantly, the pilot demonstrates the real-world impact of Open Finance. While the concept has often been associated with payments and lending, OFxPERA showcases its potential in long-term financial products like retirement savings. By enabling seamless, interoperable data sharing, Open Finance builds a future where customers—not institutions—control financial information.
UnionBank’s entry into the pilot strengthens this movement. With its reputation as a digitally progressive bank, its participation signals confidence in Open Finance as a sustainable model for product innovation. It also reinforces the message that digital transformation is not limited to payments and deposits—it extends to wealth management, savings, and retirement planning.
UnionBank’s role and the digital edge
UnionBank is no stranger to open finance. Through its developer portal, the bank manages nearly 1,000 application programming interfaces (APIs), enabling connections with about 200 partner institutions. This infrastructure has given UnionBank a strong foundation to participate in projects like OFxPERA.
According to UnionBank leadership, this pilot represents more than just a compliance milestone; it’s part of a long-term strategy to democratize financial services. By tapping into Open Finance, UnionBank can integrate new products and services into its UnionBank Online app, reducing customer friction while unlocking opportunities for cross-product engagement.
As OFxPERA moves into its second phase, UnionBank plans to deepen collaboration with regulators, fintech startups, and other banks. Future enhancements may include integrating PERA with lifestyle apps, expanding investment options, or even creating micro-savings plans tailored to gig workers and overseas Filipinos.
What this means for Filipinos
For everyday Filipinos, UnionBank’s participation in the OFxPERA pilot translates to a much simpler and more accessible retirement planning experience. Opening a PERA account—once considered tedious—can now be done in minutes using digital credentials already stored with a bank or e-wallet.
This innovation also addresses a key behavioral hurdle: convenience. Studies show that Filipinos, particularly younger workers, are less likely to commit to long-term savings when faced with complex requirements. By reducing onboarding to just a few clicks, OFxPERA improves the chances of wider adoption, especially among digital-native millennials and Gen Z.
Moreover, PERA’s inherent tax benefits — such as income tax credits for contributions and tax exemptions on investment income — become more attractive when paired with this simplified process. With UnionBank and other participants championing this digital approach, Filipinos can more easily take the first step toward securing their retirement future.
Looking ahead: The bigger picture
The OFxPERA pilot is more than just a retirement savings initiative. It represents the growing maturity of the Philippines’ Open Finance ecosystem. Each success story, such as UnionBank’s involvement, paves the way for new applications — from simplified insurance enrollment to seamless loan applications and integrated investment platforms.
In the long run, Open Finance could empower Filipinos to manage their entire financial lives across multiple providers in a unified, user-controlled ecosystem. The OFxPERA pilot is one of the earliest examples of this vision taking shape, demonstrating how data portability can unlock greater inclusion and efficiency.
Turning innovation into everyday value
UnionBank’s role in the OFxPERA pilot is a clear win for consumers. For those who have long postponed retirement planning due to hassle or accessibility issues, the barriers are finally coming down. The process is faster, easier, and aligned with how Filipinos already manage their money — digitally.
For the banking sector, it’s a reminder that digital transformation is no longer optional; it is the pathway to relevance and resilience. And for the Philippines as a whole, initiatives like OFxPERA bring the country closer to a financially inclusive society where preparing for the future is simple, secure, and within everyone’s reach.
