Open finance to hasten financial inclusion

This year, the Bangko Sentral ng Pilipinas aims to bring at least 70 percent of adult Filipinos into the formal financial system.

European Chamber of Commerce of the Philippines’ Special Committee on Open Finance and Financial Inclusion urged the government to double down its open finance initiatives as it races to achieve its financial inclusion goals this year.

As the new administration assures that it will prioritize digital transformation on a national scale, the ECCP-SCOFFI believes that it is high time that the government places more premium on the development of policies and the rollout of more open finance initiatives in the country.

“With multiple economic crises and a looming global recession ahead of us, financial inclusion should be emphasized now more than ever. The inclusion of multiple economic sectors in the Philippines is crucial, especially considering that we are still recovering from the impact of Covid-19, and the circumstances in the post-pandemic era already pose many challenges. As staunch advocates of inclusivity, we at ECCP-SCOFFI vow to support the government’s endeavors towards financial inclusion and open finance,” ECCP-SCOFFI chairman John Januszczak said.

Open finance allows industry players to create customer-centric products and provide better access to critical financial services such as savings, insurance, and credit. This year, the Bangko Sentral ng Pilipinas aims to bring at least 70 percent of adult Filipinos into the formal financial system. Still, as of 2022, 47 percent of the population remains unbanked.

Januszczak, who also sits as president of UBX, the leading open finance platform in the Philippines, added that open finance could help rebuild the economy by strengthening digital businesses.

He cited a Google and Temasek study that predicted that the Philippine digital economy, currently valued at $20 billion, is expected to maintain an upward trajectory to as much as $150 billion in the next decade.