BSP launches open finance pilot for PERA
THE BANGKO SENTRAL ng Pilipinas (BSP) has launched a pilot program that will use open finance to boost access to the Personal Equity and Retirement Account (PERA) and encourage more Filipinos to save.
The central bank on July 29 launched the Open Finance for PERA Pilot, which leverages the regulator’s Open Finance framework that allows for secure sharing of customers’ financial data across institutions.
“By making PERA the starting point for open finance, we make it part of a seamless digital ecosystem, making saving and investment simpler for everyone,” BSP Governor Eli M. Remolona, Jr. said “At the same time, we give open finance a jumpstart from concept to practice. This is more than innovation; this is financial health.”
Through the initiative, Filipinos can open PERA accounts by logging into their selected provider’s platform and consenting to bank or e-wallet know your customer data sharing, which the BSP said eliminates the need for manual forms or ID verification.
“The BSP sees open finance as a means to expand financial choice and convenience… The pilot will soon allow users to open accounts directly via participating apps, making PERA more accessible and user-friendly,” the central bank added.
The launch was attended by BSP officials, Monetary Board members, as well as representatives from participating financial institutions and PERA Administrators. The participating institutions will enable their customers to open PERA accounts, while the PERA Administrators will manage the investments.
The participating financial institutions are Land Bank of the Philippines; Maya Philippines, Inc.; Metropolitan Bank & Trust Corp.; Philippine National Bank; Rizal Commercial Banking Corp.; Union Bank of the Philippines, Inc.; and G-Xchange, Inc.
Meanwhile, the PERA Administrators are ATRAM Trust Corp.; BDO Unibank, Inc.; and BPI Wealth – A Trust Corp.
Launched in 2016, PERA is a voluntary fund scheme meant to supplement retirement benefits from the Government Service Insurance System or the Social Security System, as well as private employers.
Contributors aged 18 and above who have a tax identification number are allowed to open a PERA account. Self-employed and locally employed contributors can make an annual contribution of P200,000, while overseas Filipino workers can invest up to P400,000.
The PERA Law also offers various incentives to contributors, such as tax exemptions on earnings from PERA investments, a 5% income tax credit on contributions that can be used for paying income tax liabilities, and a tax-free distribution on qualified withdrawal of PERA investments.
Accumulated PERA contributions climbed by 24% year on year to P491.4 million at end-2024 from P396.3 million in 2023, data from the BSP showed.
The total number of PERA contributors likewise rose by 6.4% to 5,912 at 2024’s close from 5,555 a year prior. — Katherine K. Chan
