Bangko Sentral ng Pilipinas is developing an open finance framework that would allow Filipino consumers to securely share e-wallet transaction histories and other financial data with lenders through standardized APIs. The initiative addresses a gap where millions of Filipinos use digital payment platforms for bills, purchases, and transfers, but this financial activity remains scattered across providers and often does not count toward traditional credit assessments. Digital payments accounted for 57.4% of retail payment transactions by volume in 2024 according to BSP data, yet there is no standardized system allowing consumers to transfer this broader financial history between institutions. The framework aims to give consumers control over their data while helping lenders assess borrowers more accurately, potentially reducing loan costs for those without conventional banking histories.
Open Finance Framework Enables Secure Data Sharing Through APIs
Open finance functions as a permission system allowing financial companies to share consumer data securely when authorized. Instead of manual document submission, banks or e-wallets would transmit selected information through application programming interfaces that serve as secure digital connectors exchanging data in standard formats. The system requires consumer consent for each data transfer, with the ability to specify what information is shared, with which recipients, and for what purposes. Consumers can withdraw consent at any time.
The framework extends beyond traditional bank accounts to encompass e-money, investments, pensions, and insurance products. This broader scope differs from open banking concepts that typically focus only on deposit accounts. Financial records from freelance payments, bill payments, and e-wallet transactions could become part of credit assessments under this system, particularly benefiting consumers without conventional banking relationships.
BSP Tests Open Finance Pilot for PERA Retirement Accounts
BSP has begun testing the concept through an open finance pilot for Personal Equity and Retirement Accounts. Under this program, verified customers can authorize a bank or e-wallet to send existing information to a PERA administrator. The pilot reduces the need for consumers to repeatedly submit the same records when opening retirement accounts.
Proposed Legislation Grants Consumers Data Portability Rights
The Open Finance and Consumer Data Empowerment Act of 2025 seeks to provide legal foundation for BSP's framework. The bill was pending in the House committee on banks and financial intermediaries as of July 2026. The proposed legislation declares that consumers have a right to control the use and sharing of their financial data.
Under the bill's provisions, consumers would be allowed to obtain their information in portable, structured, and machine-readable format for free at least once every calendar quarter. They could instruct companies holding their records to securely transfer copies to BSP-accredited recipients. The measure includes provisions for consumers to revoke consent, request correction of inaccurate information, and request deletion where applicable. Financial companies would retain records when required by banking, tax, anti-money laundering, and other laws.
Covered financial companies would have to develop secure APIs and provide digital dashboards where consumers can manage permissions and view which accredited companies have accessed their data. The bill must pass both chambers of Congress and be signed into law before these provisions become enforceable.
FAQ
What is open finance and how does it work in the Philippines?
Open finance is a permission-based system that allows financial companies to share consumer data securely through application programming interfaces when authorized by the consumer. Bangko Sentral ng Pilipinas is developing a framework where consumers can instruct banks or e-wallets to transfer selected financial information to BSP-accredited recipients in standardized digital formats, with the ability to control what data is shared and revoke consent at any time.
What financial data would consumers be able to share under the proposed framework?
The framework encompasses records from bank accounts, e-wallets, investments, pensions, and insurance products. This includes transaction histories, payment patterns, cash flow data, and bill payment records that currently exist across multiple financial platforms but are not easily portable between institutions.
