Philippine Open Finance
As a component of its overall strategy, the Bangko Sentral ng Pilipinas (BSP) issued 2021 BSP Circular No. 1122 which lays out the guidance for the development of a framework for open finance.
The OFOC TG will be called upon to help shape, promote, develop, and oversee elements of an innovative and inclusive market for open finance services.
Read on to find out more.
Open Finance in the Philippines
“Open Finance refers to leveraging on and sharing of customer-permissioned data among banks, other financial institutions, and TPPs to develop innovative financial solutions, such as among others, those that provide real-time payments, greater financial transparency options for account holders, marketing, and cross-selling opportunities.”
The Open Finance Framework aims to empower customers by giving them better control over their personal and financial data catalysing the development of products and services that are responsive to their needs. Under the framework, financial institutions and TPPs can leverage on permissioned-access customer financial information to develop bespoke financial products and services for customers.”
“It is the thrust of the Bangko Sentral to promote an enabling environment that foster innovation, encourages coopetition, and advances financial inclusion while safeguarding the integrity and stability of the financial system.”
Click here to find out more
The Open Finance Oversight Committee Transition Group
In November 2021, through its circular letter no 090, the BSP recognised the Open Finance Oversight Committee Transition Group (OFOC TG) as the interim governing body to lead the constitution of a formal body and facilitate the development of participation arrangements, technical standards and other common guidelines.
This group was formed and representatives appointed in January 2022, with the publication of Circular Letter No. CL-2022-002.
Click here to find out more about the OFOC TG
The Philippine Open Finance Pilot
The Philippine Open Finance Pilot (“PH Open Finance Pilot”) is a collaborative undertaking of financial institutions, 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 activities of the PH Open Finance Pilot will be governed by the provisions of BSP Circular No. 1122 on the Open Finance Framework, and monitored by the Open Finance Oversight Committee Transition Group (OFOC TG).
Click here to find out more about the PH Open Finance Pilot.