BSP tightens rules for digital financial marketplaces

The Bangko Sentral ng Pilipinas is tightening regulations for digital financial marketplaces to strengthen consumer protection, risk governance, data security, and trust in the country’s expanding digital finance ecosystem.

The new rules, issued under Circular No. 1237, apply to BSP-supervised financial institutions that operate digital financial marketplaces, or platforms that allow customers to access financial products and services offered by BSFIs.

Digital financial marketplaces may offer loans, insurance, investments, or other financial services from multiple providers.

These platforms may also feature nonfinancial products and services such as automobiles, travel, shopping, and lifestyle deals when these are tied to or add value to a bank or e-wallet product or service.

Under the circular, BSFIs operating digital financial marketplaces must comply with standards on risk governance, data governance, consumer protection, and customer due diligence.

They must also maintain at least PHP 1 billion in capital to support continued investments in technology upgrades and cybersecurity measures.

BSP Governor Eli M. Remolona Jr. said the regulation aims to balance innovation with consumer safety and financial stability.

“The BSP promotes responsible innovation while working to ensure consumers are protected, risks are properly managed, and trust in the financial system is preserved,” Remolona said.

The new rules define the responsibilities of both marketplace operators and third-party financial service providers featured on the platforms.

The circular covers accreditation, performance reviews, platform security, complaints handling and recourse mechanisms, data protection, and compliance with relevant laws, rules, and regulations.

To promote consumer choice and competition, the BSP requires digital financial marketplaces to present financial products and services in a neutral and impartial manner.

The circular also requires the participation of at least three service providers that are not affiliated with the marketplace operator’s group or conglomerate.

The BSP said financial information may be shared only with the customer’s consent, through secure channels, and in accordance with applicable laws and regulations.

The regulation responds to the growing use of digital financial marketplaces as consumers increasingly turn to online platforms for financial transactions and product comparisons.

The BSP said such platforms can expand consumer choice, convenience, and access to financial products and services.

However, the central bank also noted that digital financial marketplaces introduce new operational and consumer protection risks, particularly in areas involving data sharing, platform security, third-party services, and customer recourse.

The circular builds on existing BSP regulations, including outsourcing guidelines, and complements the cross-selling framework.

The stronger rules signal the BSP’s continuing push to regulate digital finance while allowing supervised institutions to innovate under clearer safeguards.