BSP, IFC, World Bank launch Open Finance PH pilot

MANILA, Philippines — The Bangko Sentral ng Pilipinas, alongside the International Finance Corp. and the World Bank, launched this new initiative in a bid to expand the reach of financial services to the country’s unbanked segment.

In a statement on the Wednesday, the BSP explained that this program was a voluntary undertaking and that eligible financial institutions supervised by the BSP will participate in this initiative.

“This initiative aims to help the unbanked—particularly those who lack documentation—build a financial profile and credit history and, over time, access loans and other services that were once out of reach,” the statement read.

Data from the BSP showed that between 2019 and 2021, over 34.3 million Filipinos remain unbanked. These unbanked Filipinos do not have a formal financial account, such as a savings account, that could help them build credit history that they would need to access loans and other services.

The central bank explained that an open finance ecosystem will also expand access for banked Filipinos and micro, small, and medium enterprises. This will give individuals and businesses control over how they receive financial services, such as tailor-made payment schemes.

The BSP indicated that registration for this pilot commenced on Wednesday since the program will operate through the support of the IFC. 

“This puts the Philippines on the map when it comes to open finance. It positions the country right alongside more advanced markets like Singapore, the United Kingdom, and the European Union, all of whom catalyzed innovation by championing open banking initiatives,” said Jean-Marc Arbogast, country manager for IFC Philippines. — Ramon Royandoyan