THE Bangko Sentral ng Pilipinas (BSP) announced that it is crafting rules to establish a so-called “digital marketplace” for innovation between banks, electronic money issuers (EMIs) and financial service providers (FSPs).
BSP Governor Benjamin E. Diokno said this digital marketplace is part of the central bank’s efforts to continue promoting financial innovation in the banking and payments system in the country.
The digital financial marketplace model is anchored on the “open finance framework,” which allows the sharing of financial data of consenting customers to create innovative financial solutions that cater to their needs.
“The BSP is crafting rules that will allow covered banks and EMIs to establish a digital marketplace where they can partner with FSPs to develop and offer a wide array of financial products and services to consumers under a one-stop-shop platform,” Diokno said.
“This arrangement is expected to promote a more competitive environment that will ultimately benefit financial consumers,” he added.
According to the BSP, a digital marketplace recognizes the right of clients to choose product offerings. Similarly, the bank or EMI shall be jointly responsible for providing consumers with necessary information to help them make informed choices.
The financial products or services to be offered include retail loan products, such as home mortgage loans, credit cards, motor vehicle loans, salary loans, and consumer credit for other purposes; other retail financial products, such as cash cards, debit cards and other related products; retail insurance products, collective investment schemes or pooled investment funds, such as mutual funds and unit investment trust funds; and other financial products or services as may be authorized by the Monetary Board.
These financial products or services should be duly approved or registered by the appropriate regulatory authority, if applicable.
“The BSP is coordinating with relevant stakeholders and financial regulators to ensure that the proposed digital financial marketplace model is consistent with existing laws, rules and regulations,” Diokno said. “We remain steadfast in our commitment to foster innovative regulations, while maintaining the stability of the financial system and upholding consumer rights.”