THE country’s financial sector regulators have signed a memorandum of agreement (MOA) under the auspices of the Financial Sector Forum (FSF) on the establishment of a Cooperative Oversight Framework on financial technology (fintech) innovation.
FSF is a voluntary inter-agency body comprised of the Bangko Sentral ng Pilipinas (BSP), Securities and Exchange Commission, Philippine Deposit Insurance Corp., and the Insurance Commission.
“The framework aims to facilitate seamless regulation and supervision of fintech companies across the financial sector leveraging on the consultative and collaborative platform under the MOA. This will ensure that risks attendant to fintech activities are effectively managed without stifling innovation. The operationalization of the MOA is seen to avoid regulatory overlaps and arbitrage and promote adherence to standards set out in relation to cyber security, anti-money laundering/combatting of financing of terrorism, and consumer protection,” the BSP said in a statement.
The framework, which will cover all financial institutions performing multiple regulated activities using a single application platform, aims to facilitate seamless regulation and supervision of fintech companies.
“The institutionalization of the cooperative oversight framework on fintech innovation symbolizes our unity in diversity and reinforces the spirit of shared commitment among financial sector supervisors to espouse an enabling regulatory environment in the digital financial economy,” said BSP Gov. Benjamin Diokno.
The framework also aims to facilitate seamless regulation and supervision of Fintech companies across the financial sector leveraging on the consultative and collaborative platform under the MOA.
The agreement is part of the BSP’s current initiatives and strategies in advancing an efficient, inclusive, safe and secure digital payments ecosystem after it launched the Digital Payments Transformation Roadmap last year.
“The roadmap identifies two critical strategic objectives. The first objective, also my personal goal as BSP governor—is that at least 50 percent of the country’s total financial transactions be done digitally, and at least 70 percent of Filipino adults have financial accounts,” Diokno said in the Ulat ng BSP sa Bayan forum.
The second objective involves the availability of more innovative digital financial products and services.
“These products and services, designed to be responsive to consumers’ needs, will be enabled by a digital PhilSys ID and supported by a next-generation payment and settlement system that facilitates the real-time processing of financial transactions,” he said. (JOB with PR)