Open finance promotes financial inclusion of SMEs

The Open Finance Framework is seen to promote the financial inclusion of small businesses in the Philippines by supporting customer-centric development of innovative financial products or services.

“With the tailor-fit solutions that open finance brings, we will be able to onboard more small and medium enterprises (SMEs) into the formal financial system and provide them with access to digital financial services,” said BSP Governor Benjamin E. Diokno during the recent anniversary of the Italian Chamber of Commerce in the Philippines, Inc.

Open Finance Framework governs customer-allowed sharing of financial data that will lead to the creation of innovative financial solutions for both customers and financial institutions. Customers, as owners of the transaction data, will have the power to grant access to financial data which will help shape customer-centric products.

The Governor explained that improved access to finance by SMEs can help sustain their economic activities and aid in the digital transformation of their businesses.

“This will empower them to be an integral part of the country’s economic recovery,” according to Governor Diokno.

BSP stands firm in its commitment to foster an enabling policy environment for the development of responsive and innovative digital financial services for Filipinos. (BSP)