BSP to streamline licensing requirements for e-payment

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has streamlined licensing requirements for banks and financial institutions that intend to offer electronic payment and financial services (EPFS).

The regulator said the simplification of the licensing process is in line with the BSP’s reform agenda of promoting digital innovations and increasing the availability of safer and more efficient channels for delivering banking, payment, remittance, investment, and other financial services.

The central bank approved the enhanced EPFS licensing policy, allowing BSP supervised financial institutions (BSFIs) that provide basic services or those that enable clients to access information on their deposit, loan, and other accounts or receive funds by electronic means to notify the BSP within 30 days prior to the launch of those services.

However, BSFIs that advanced services allowing clients to transfer funds from one account to another and initiate other financial transactions still require BSP approval.

The approval process requires BSFIs to comply with the prudential criteria set out in the licensing framework of the BSP and submit a certification of compliance and request a confirmation of eligibility to offer EPFS from the central bank.

The BSFIs are also required to submit certain documentary requirements to eventually obtain an EPFS license.

The BSP said all previously licensed and operational EPFS of banks and financial institutions need to re-register with the regulator on March 31.

On the other hand, BSFIs that have licensed EPFS, but have yet to be launched have until Sept. 30 to register.

Likewise, BSFIs should submit periodic prudential reports that are aimed at strengthening the BSP’s surveillance and supervisory mechanisms and ensuring the availability of information for policy development and other regulatory purposes.

To optimize the benefits of interoperability, banks and financial institutions are required to adopt marketing strategies that effectively promote EPFS.

“With its streamlined licensing policy on EPFS coupled with more vigorous drive for interoperability among the BSFIs, the BSP looks forward to a highly efficient funds flow in the economy, supporting productive activities that fuel economic growth,” the central bank said.