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BSP Urges Fintech to Capitalize on E-payment Surge

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By Shiela Bertillo

Financial technology firms are urged by the Bangko Sentral ng Pilipinas (BSP) to seize opportunities presented by the rise in digital transactions and issuance of supportive e-payment policies in developing innovative solutions, on Friday during the Fintech Alliance Philippinesโ€™ 2nd General Membership Meeting.

โ€œStrike while the iron is hot. Tap into your innovation DNA to create worthwhile solutions. The conditions are ripe and the time to act is now,โ€ said BSP Governor Benjamin E. Diokno in a statement.

Fintech firms are companies that offer breakthrough platforms, services, and digital systems to automate, expand and facilitate access to financial services. (Read More: SEC Pushes For Balance in Fintech Regulation Beyond COVID-19)

According to Diokno, The BSP noted a significant spike in digital transactions amid the pandemic.

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As of end-July 2021, InstaPay transaction volume and value rose by 64% and 103% relative to the same period in 2020; while PESONet transaction volume and value also grew by 190% and 50%, respectively.

Accordingly, the central bank issued policies on digital banking to encourage better delivery of financial services of digital banks without the constraints of brick-and-mortar operations, and on open finance to promote greater interoperability and collaboration among financial institutions and fintechs.

Likewise, the BSP is undertaking policy initiatives to amend its E-Money and Technology Outsourcing Circulars, and formalize the BSPโ€™s test-and-learn approach or regulatory sandbox to recalibrate, and fortify its existing policies. (Read More: BSP Director: No Specific Guidance on NFT Games (Report))

Moreover, the BSP is also transitioning to a new supervisory rating framework, which centers on stronger offsite supervision

Earlier this year, the central bank and the other financial regulators in the country also agreed to come up with a unified monitoring and supervision scheme for the local fintech industry without stifling the firmsโ€™ new and creative ideas.

The purpose of these initiatives is to support the digital transformation initiatives of BSP-supervised financial institutions, counting fintech players, while promoting sound risk technology and cyber risk management.

This article is published on BitPinas: BSP Urges Fintech to Capitalize on E-payment Surge

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