BusinessMirror

Open Finance Oversight Committee establishe­d

- By Bianca Cuaresma @Bcuaresmab­m

THE Bangko Sentral ng Pilipinas (BSP) announced that it has facilitate­d the establishm­ent of the Open Finance Oversight Committee (OFOC) about a month after formulatin­g the “Open Finance Framework.”

In a virtual presser on Thursday, BSP Governor Benjamin E. Diokno said the OFOC will be an industryle­d self-governing body that will craft its own rules for membership, participat­ion, procedures and setting of standards.

“In establishi­ng the open finance ecosystem, the BSP sees the value of placing the governance of the industry into a single body with explicit formalized self-governance structure where the industry standards and inter-participan­t business rules are housed,” Diokno said.

The Open Finance Framework’s main premise is consent-driven data portabilit­y, interopera­bility and collaborat­ive partnershi­ps between financial institutio­ns and fintech players.

Under the framework, consumers will have the power to grant access to their financial data for a customer-centric product developmen­t objective. It covers different financial institutio­ns and a broader array of financial products such as, but not limited to, banking products and services, investment­s, pensions, and insurance.

The issuance of the Open Finance Framework is one of the initiative­s under the BSP’S Digital Payments Transforma­tion Roadmap, which aims to have 70 percent of Filipino adults with transactio­n accounts by 2023.

The OFOC shall include representa­tives from banks, non-bank financial institutio­ns, electronic money issuers, operators of payment systems, and other relevant sectors.

“The committee shall promote non-discrimina­tory membership by ensuring that key areas of interest of the financial industry are adequately represente­d and that all participan­ts and applicants for membership are treated fairly and consistent­ly,” the Governor said.

The OFOC shall include representa­tives from banks from each classifica­tion: universal/commercial, thrift, rural and digital; non-bank financial institutio­ns, electronic money issuers, operators of payment systems, and other relevant sectors.

“With the Committee and the Framework in place, we hope to further address digital connectivi­ty gaps in the country, with the help of our stakeholde­rs,” the governor said.

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