Guidelines for the new monetary system called “Open Finance Framework” have been approved by the Bangko Sentral ng Pilipinas (BSP).
BSP Governor Benjamin Diokno explained that the new framework will help monetary entities like the central bank in achieving its goal of letting more Filipino adults in the formal financial system.
“Open Finance is definitely not a sprint but a marathon. It will be a long and challenging run, but just like any other sport, we need to prepare and condition ourselves to finish strong in this race.” as BSP Governor Benjamin Diokno explained. (Read More: BSP: PH Digital Transactions Increase Despite the Health Crisis)
“Open Finance Framework” is one of the agency’s priorities listed under its “BSP Digital Payments Transformation Roadmap” which targets 70 percent of Filipino adults to have transaction accounts by 2023.
According to BSP, Open Finance is a “consent-driven data portability, interoperability, and collaborative partnerships among incumbent financial institutions and fintech players”.
“This initiative will bring us closer to our goal of promoting an inclusive and sustainable recovery and growth for the country.” Diokno added.
BSP plans to implement the framework through a tiered-approach based on data sensitivity, and types of data and data holder in which the consumers will still have the power to grant access to their own financial data that will shape customer-centric product development objectives.
First (1) tier – involves sharing of product and service information and other details of financial products/services that are already readily accessible online.
Second (2) tier – involves sharing of subscription and new account applications information.
Third (3) tier – involves sharing of account information or personal and financial information provided by a customer.
Fourth (4) tier – covers transactions data, such as payments and other financial transactions data.
Fifth (5) tier – covers those not covered by tiers 1-4 and other more complex financial products or use cases.
Source: Manila Bulletin
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