Financial transaction

Autonomous open financial agency to be ready this year – BSP – Manila Bulletin

The creation of an Open Finance Oversight Committee (OFOC), an autonomous industry-led body, will be completed within the year to adopt, update and enforce the rules of conduct for an open financial system, according to Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno.

“We are aiming for the complete creation of OFOC within the year. As a follow-up, PASB will organize workshops among the initial set of OFOC members to facilitate discussion and resolution of common areas of cooperation which include, but not limited to, governance models, membership agents, priority cases used and coordination modalities. “Diokno said in his weekly press chat.


OFOC, which the BSP will oversee, establish its own standards and procedures, and promote what the central bank has described as a “non-discriminatory membership” that will represent all relevant sectors such as banks, non-bank financial institutions, electronic money issuers and payment system operators.

The BSP approved the Open Finance Framework last June after publishing the draft rules in December 2020 for the return of industry players.

Diokno said OFOC, which is a provision of the open finance circular, “will play a key role in implementing critical components of the open finance ecosystem.”

However, it will still be some time before Filipino consumers take full advantage of open finance, Diokno said.

Open finance is defined as the sharing and exploiting customer-authorized data between banks, other financial institutions and third parties for financial solutions such as those that provide real-time payments, financial transparency options for account holders, marketing and cross-selling opportunities.

“Even in the initial stages and potential birth pains when launching open finance use cases, it takes some time before the public can experience and realize the full benefits of open finance,” Diokno said. .

As it stands, the open funding framework should address data silos between industry players. “This should encourage competition by the entry of more players as well as by offers of financial services”, he added.

Diokno also said that with open finance, Filipino consumers will have a consolidated view of their personal data and financial transactions, access more affordable services that meet their needs, and ultimately make more informed financial choices.

“For the local banking industry and other market players, open finance can improve digital agility in the financial services space and take competition to a new level,” said Diokno.

Open finance and open banking are included in PASB’s three-year digital payments transformation roadmap. Also known as open banking data, it provides information to third-party financial service providers through application programming interfaces or APIs.

“By establishing the open financial ecosystem, the BSP sees the benefit of placing the governance of the sector in a single body with a formalized and explicit self-governance structure where the standards of the sector and the inter-trade rules are housed. -participants, ”said Diokno.

Fundamentally, the open financial framework enables data portability, interoperability, and consent-based collaborative partnerships with the same standards of data security and privacy.

Diokno explained that the idea behind it is that the customers are the owners of the transaction data. “(So) the data should be shared if customers want it. As such, consumers will have the power to grant access to their financial data. This will shape a customer-centric product development goal, ”he said, adding that customers“ will also have sign-up and opt-out mechanisms when they wish to withdraw or change the scope of their consent in the future. ‘open financial ecosystem’.



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