Philippine Daily Inquirer Digital Edition

CUSTOMIZED FINANCIAL PRODUCTS IN THE OFFING

By Daxim L. Lucas @daxINQ

The Philippines will see more financial products that are tailor-fit to the needs of clients once the local central bank’s “Open Finance Framework” is fully implemented, according to the regulator.

In a statement, the Bangko Sentral ng Pilipinas (BSP) said it expected the development of more “customer-centric financial products” as the new scheme would give clients of banks, insurance firms and financial technology firms more control of their personal data.

This will allow financial institu tions to personalize products based on their usage patterns, or opt out of these services altogether.

“The framework sees customers as owners of their transaction data, which can be shared if they wish to do so,” BSP Governor Benjamin Diokno said in a recent online forum. “With more data shared, financial institutions and third-party players are incentivized to adopt a customer-centric product development cycle.”

Consent-driven

The regulator said open finance was supporting a consent-driven data sharing scheme that would promote collaborative partnerships among incumbent financial institutions and new players that adhere to the same standards of data security and privacy.

“For example, your main banking app can insert a feature that lets you add accounts from your other banks to help you monitor all your accounts,” he said. “Your investing app can also let you add your bank account to let you see how much you can invest. This is the promise of open finance.”

With greater access to consumer data, banks and third-party providers could also tailor a broader array of financial products such as banking products and services, investments, pension and insurance.

Issued in June this year under Circular No. 1122, the Open Finance Framework is a component of the BSP’s Digital Payments Transformation Roadmap, which aims to convert at least 50 percent of the total volume of retail payments into digital form and to onboard at least 70 percent of Filipino adults to the financial system.

The underlying idea is that customers are the owners of transaction data; thus, data should be shared if the customers wish to do so. As such, consumers will have the power to grant access to their financial data, leading to customer-centric product development.

BUSINESS

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2021-10-21T07:00:00.0000000Z

2021-10-21T07:00:00.0000000Z

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Philippine Daily Inquirer