On May 12, 2021 the Fintech Alliance.PH and Fintech Philippines Association (FPH) introduced the Philippines Fintech Industry Sandbox pilot to its key stakeholders including contributors, observers, and future participants. The Sandbox pilot initiative is supported by the UK’s ASEAN Economic Reform Programme (ASEAN ERP) and was inspired by the UK Innovate Finance’s Industry Sandbox Consultative Report. The collaboration between the FinTech organizations was announced during the World Fintech Festival on December 11, 2020. In his keynote speech, British Embassy’s Deputy Head of Mission Alastair Totty said, “As a complement to the national digitalization agenda, the Fintech industry is a key pillar of the digital financial ecosystem. The Industry Sandbox we are launching today will support the Fintech industry’s critical role in cultivating innovative solutions that support the financial system, facilitate commerce and trade, promote financial inclusion, and meet customer needs in a shifting landscape. The sandbox can also be a proponent for greater collaboration and sharing lessons in this dynamic field”.
This initiative includes close coordination with key stakeholders including the Bangko Sentral ng Pilipinas (BSP), API Exchange (APIX), Rural & Thrift Banks of the Philippines, the Fintech Alliance.ph and the Fintech Philippines Association. Together they presented the Sandbox initiative and the first round of problem statements that invite Fintech Solution Providers to answer three challenges issued by rural and thrift banks of the Philippines.
At the pilot launch, Mhel Plabasan, Director Technology, Risk and Innovation at the BSP introduced the key concepts and the roadmap for Open Finance in the Philippines. The BSP believes that Open Finance and the access to financial information are crucial to driving innovation and digital transformation. The journey started with the formation of an industry working group, and with the support of the experts, the BSP issued the Open Finance Circular, ready to be approved in the coming weeks. Considering the varying level of readiness, the BSP is adopting a collaborative approach with the different industry players to implement this series of circulars. Aligned with the Test & Learn approach of the BSP, thirteen institutions already approached the BSP to embark on this pilot prior to the implementation of the circular.
Ida Tiongson, Trustee of the Fintech Alliance.ph and Fintech Philippines Association highlighted that “The primary purpose of the Philippines Fintech Industry sandbox is to allow FinTech and financial institutions to share organizational information, access solutions and problem statements in a central database in coordination with regulators.” This will enable FinTechs to create solutions that can support the expansion and create greater access to and facilitate a broader range of financial services. Participation in solution submissions will provide a greater reach for companies to be listed as a vetted member of the Philippines Fintech Industry Sandbox directory and API platform. Shortlisted Solution Providers will also be highlighted in public announcements from the Philippines Fintech Industry Sandbox and have the opportunity to directly contract with interested rural and thrift banks to test further solutions.
The Philippines Fintech Industry Sandbox is hosted on the APIX platform, a cloud-based open architecture API marketplace, developed by the ASEAN Financial Innovation Network (AFIN). Manish Diwaan, Managing Director of APIX, is excited to host the Philippines Fintech Industry Sandbox and welcomes FinTechs and financial institutions from the Philippines: “Our genesis lies in the idea of social good, to bring together FinTech’s and financial institutions in a failsafe environment where they can come together to make digital finance possible.”
Julius Zapata, IT Bank Consultant from the Bank of Florida and Reggie Ocampo, Vice President Microfinance & HR from the Country Builders Bank introduced the three problem statements to the audience:
- Mobile Banking Application – Several rural and thrift banks in the Philippines require a Mobile Banking Solution that integrates via API with the various core banking platforms. Banks are open to a full-stack solution, or a modular approach enabled via integration layers.
- Credit Scoring Application – Several rural and thrift banks in the Philippines require a credit scoring tool that can integrate, via API, with individual banks’ core banking platforms to allow customers to authorize analysis of multiple transactional data sets.
- E-KYC Application – Several rural and thrift banks in the Philippines would like to have e-KYC tools to allow for client verification and authentication and support remote account opening for small value accounts. The e-KYC solution should be incorporated in a bank’s mobile banking application and/or be offered as a standalone mobile tool.
Justo Antonio Ortiz, Chairman of the Fintech Philippines Association encouraged everyone to participate in this opportunity, highlighting the importance of this initiative: “The Industry Sandbox we are launching today really provides a responsible, organized approach to regulatory approval, customer protection and centricity, to data privacy and most especially to public trust in a speedy and cost-effective manner.” Additionally, Lito Villanueva, Chairman of the FinTech Alliance.ph addressed some of the challenges and barriers which are still prevalent in the Philippines and the significance of Open Finance: “The challenge of financial inclusivity is too enormous for any single player to accomplish alone. This is why collaboration, synergy, cooperation and partnerships through Open Finance will be key towards a sustainable digital economy for the Philippines.”
How to join?
- Ensure you are a member of the Fintech Alliance.PH or Fintech Philippines Association
If you are not a member, please make sure to contact the Fintech Alliance.PH or the Fintech Philippines Association and apply to become a member at:
Fintech Alliance.PH: www.fintechalliance.ph / secretariat@fintechalliance.ph
Fintech Philippines Association: www.fintechph.org / sheryll@fintechph.com / jove@fintechph.com
- Ensure you have signed up to APIX
If you do not have an APIX account already please sign up here: https://bit.ly/registerapix
Important Note: Membership to APIX is only free for small and medium-size FinTech entities,
System Integrators and Financial Institutions that have not raised a Series B funding round.
- Respond to Problem Statements
The entire problem statements can be found under the Philippines Industry Sandbox in APIX.
Post your solutions as comments beneath the problem statements in APIX using this template. The following timeline will be followed:
- May 12 – June 7: Solution Submissions
- June 8 – 10: Shortlist of Solution Providers
- June 11 – Results of Shortlist