The BSP was proposing guidelines on the digital financial marketplace.
BSP — The Bangko Sentral ng Pilipinas was proposing guidelines on the digital financial marketplace in the country.
The central bank was proposing guidelines that will establish the business models and arrangements for the eventual emergence of the digital financial marketplace under the open finance environment.
According to BSP Governor Benjamin E. Diokno, with the recently-issued Open Finance Framework, the central bank “foresees the emergence of new business models and arrangements” which will bring more value to customers and will further drive innovation in the financial sector.
The central bank has begun to circulate to non-banks and banks for recommendations and comments. Non-banks and banks were expected to submit their comments to the central bank by February 16.
In the proposed circular, the BSP chief said that the central bank supported the adoption of a digital financial marketplace model wherein banks and EMIs (electronic money issuers), as ecosystem drivers, “forge strategic and meaningful partnerships with other financial service providers” in order to empower consumers and to enable them to access a range of select financial products and services via a one-stop-shop platform.
Also, the new circular will be based on sound governance and risk management system, and effective information sharing arrangements in order to ensure that consumer interests were protected and attendant risks were adequately managed.
A digital financial marketplace, based on the draft circular, is a digital platform or electronic channel that served as the access point for EMI or bank clients to a range of financial services offered by multiple financial service providers.
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Manila Bulletin reported that the central bank described a digital financial marketplace model as a platform-based business model enabled by ecosystem partnerships between a universal bank, digital bank, commercial bank, or EMI and other financial service providers wherein the latter may use the digital marketplace owned and operated by the EMI or bank in offering selected services and products to EMI or bank clients, for a commission or fee.
The central bank will recognize digital financial marketplace activities as the accreditation, regular monitoring and review of financial service providers and the services and products offered, as well as the operations and maintenance of the digital financial marketplace, and other activities related to the marketplace agreements.
Last week, the central bank announced that it will pilot-test 3 use cases for its Open Finance Framework in the 2nd quarter this year — direct debit payments, account opening, and fund transfers.
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