IFC, BSP launch open finance pilot

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP), International Finance Corp. (IFC) have officially launched an initiative aimed at bringing financial services to the unbanked.

In a statement yesterday, the IFC said the Open Finance PH Pilot seeks to help the unbanked, particularly those who lack documentation, to build a financial profile and credit history and eventually, access loans and other financial services.

The IFC said the initiative is a voluntary undertaking for financial institutions to co-develop an open, inter-operable and scalable ecosystem to allow consumers take more control over their financial data and access financial products and services.

Eligible BSP-supervised financial institutions will be taking part of the initiative, which will operate  through the support of the IFC.

Official registration for the initiative started yesterday.

An open finance ecosystem is expected to bring benefits even to existing bank customers and micro, small and medium enterprises through products and services that better suit their needs.

It will also enable them to have more control over their data, as they will have to give consent before their information is shared.

Banks, fintech startups and other third-party providers, meanwhile, can assess credit risk more efficiently.

IFC Philippines country manager Jean-Marc Arbogast said the initiative puts the country on the map in terms of open finance.

“It positions the country right alongside more advanced markets like Singapore, the UK and the European Union, all of whom catalyzed innovation by championing open banking initiatives,” he said.

“With Open Finance PH, we are taking a big step towards unlocking equal access to financial services for all Filipinos and building a cyber resilient and open digital economy,” BSP Governor Felipe Medalla said.

“Enabled by strong partnerships, it’s time for all of us to embody responsible innovation, become leaders in the new era of finance, and write a new playbook for the banking system and the rest of the financial sector – one that truly won’t leave anyone behind,” he said.

The IFC has been working closely with the BSP and leading financial institutions for greater financial inclusion in the country.