The Bangko Sentral ng Pilipinas (BSP) urges financial technology firms (fintechs) to seize opportunities presented by the rise in digital transactions and issuance of supportive e-payment policies in developing innovative solutions.
“Strike while the iron is hot. Tap into your innovation DNA to create worthwhile solutions. The conditions are ripe and the time to act is now,” said BSP Governor Benjamin E. Diokno during the recent Fintech Alliance Philippines’ 2nd General Membership Meeting.
The BSP noted a significant spike in digital transactions amid the pandemic. As of end-July 2021, InstaPay transaction volume and value rose respectively by 64% and 103% relative to the same period in 2020. PESONet transaction volume and value also grew by 190% and 50%, respectively, as of end-July 2021.
Meanwhile, BSP issued policies on digital banking to encourage better delivery of financial services of digital banks without the constraints of brick-and-mortar operations, and on open finance to promote greater interoperability and collaboration among financial institutions and fintechs.
Furthermore, to revisit, recalibrate, and fortify existing policies, the BSP is undertaking policy initiatives to amend its E-Money and Technology Outsourcing Circulars, and formalize the BSP’s test-and-learn approach or regulatory sandbox.
BSP is also transitioning to a new supervisory rating framework, which hinges on stronger offsite supervision.
All these initiatives aim to support the digital transformation initiatives of BSP-supervised financial institutions, including fintech players, while promoting sound risk technology and cyber risk management.
Fintechs are companies that offer breakthrough platforms, services, and digital systems to automate, expand and facilitate access to financial services.