As open finance develops as a global phenomenon, it is essential for different regions to compare implementation methods before choosing the best system.
Open Banking Exchange, the global branch of Open Banking Europe, was founded to guide countries in promoting standards and best practices around open finance. In this context, OBE was recently chosen by the International Finance Corporation (IFC) as a partner to support the development of the industry framework for open finance in the Philippines.
The IFC, part of the World Bank Group, is the largest global development institution dealing with the private sector in emerging markets. Working with more than 2,000 businesses worldwide, the IFC has recognised the need for financial services to adapt the way they operate in a new digital environment.
To support the Philippine open banking industry, the IFC has sought the help of experts. This will encompass practical and operational design, the implementation of industry level governance, and technical and operational arrangements.
OBE will be supporting the IFC, as part of a broader World Bank programme with the Bankgo Sentral Ng Pilipinas (BSP), to advise them as they design and set up local arrangements for open finance. The BSP recently issued a circular laying out a framework for the evolution of financial services innovation and inclusion. OBE will liaise closely with different stakeholders in the financial sector to:
o Advise on the essential components and options for the design of open banking ecosystems.
o Help assess stakeholder readiness.
o Support the development of an industry blueprint for open banking and open finance in the Philippines.
o Conduct workshops and guide a newly formed industry group through a market building and decision process.
John Broxis, Managing Director of Open Banking Exchange, commented: “We look forward to guiding the Philippines through this period of transformation. Our global expertise and track record of collaborating with stakeholders means we are well placed to advise the Philippines on how to create a successful open banking blueprint.”
An IFC spokesperson stated: “Open finance has the potential to expand access to financial services driving innovation and broader participation in the digital economy. Industry stakeholders will benefit from the practical experience of OBE as they seek to forge common arrangements that can propel the Philippine financial system into a new phase of dynamic growth.”