THE Monetary Board has approved the rules allowing banks to share consumer data to improve their financial solutions, the Philippine central bank said at the weekend.
In a statement, the Bangko Sentral ng Pilipinas (BSP) said the open finance framework would promote financial inclusion and drive digital transformation.
Allowing the sharing of user data would help financial institutions improve investment, pension and insurance products, among other things, it said.
The central bank said information sharing would be phased based on the sensitivity, type and holder of the data.
“The tiers are not necessarily sequential and multiple implementations may occur at the same time,” it said.
The first tier will involve sharing of information on products and services and other details that are already accessible online. The second level gives access to data on subscriptions and new account applications.
The third tier covers sharing of accounts, personal and financial information provided by customers, and the next level will give access to transaction data such as payment history.
The framework will also cover other information on more complex financial products, the BSP said.
“Open finance is definitely not a sprint but a marathon,” central bank Governor Benjamin E. Diokno said in the statement. “It will be a long and challenging run, but just like any other sport we need to properly prepare and condition ourselves to finish strong in this race.”
“It will further enhance interoperability in the country by promoting the open finance framework that aligns well with the BSP’s digitalization goals,” Angelito M. Villanueva, executive vice-president at Rizal Commercial Banking Corp., said in a Viber message on Sunday. — Beatrice M. Laforga