Bangko Sentral ng Pilipinas Governor Benjamin Diokno on Friday asked financial technology companies to take advantage of the rising digital transactions and issuance of supportive e-payment policies.
“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,” Diokno said during the Fintech Alliance Philippines’ general membership meeting.
Fintechs are companies that offer breakthrough platforms, services and digital systems to automate, expand and facilitate access to financial services.
Diokno cited the significant spike in digital transactions amid the pandemic as more people choose not to make face-to-face transactions to avoid COVID-19 infection.
Data showed that as of end-July 2021, InstaPay transaction volume and value jumped by 64 percent and 103 percent, respectively relative to the same period in 2020.
PESONet transaction volume and value also surged by 190 percent and 50 percent, respectively, as of end-July 2021.
The 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.
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.
It is also transitioning to a new supervisory rating framework, which hinges on stronger offsite supervision.
Diokno said all these initiatives aimed to support the digital transformation initiatives of BSP-supervised financial institutions, including fintech players, while promoting sound risk technology and cyber risk management.
