Digital transformation: Open banking to reshape industry – Diokno

Open banking is part of the Bangko Sentral ng Pilipinas’ (BSP) digital transformation agenda and as they prepare the groundwork for its policy, client confidentiality is crucial, said BSP Governor Benjamin E. Diokno.

- LEE C. CHIPONGIAN

“Open banking is not without risks, given the potential for malicious third-party applications to steal customer information and other data protection violations,” said Diokno in a chat hosted by Union Bank of the Philippines.

Keeping customer information private is important as the BSP “lays the regulatory groundwork to protect the customer’s confidentiality and the financial institutions’ core systems.”

Open banking is included in the BSP’s three-year digital payments transformation roadmap. Also called open bank data, it provides information to third-party financial service providers through application programming interfaces or APIs.

Diokno said the open banking framework will “reshape the banking industry” and will also challenge “long-established players with increased competition and the necessary adoption of standard technology.”