ECCP-Scoffi: Govt should double down on open finance

THE government ought to double down its initiatives on open finance as it races to achieve its financial inclusion goals this year, the European Chamber of Commerce of the Philippine (ECCP)’s Special Committee on Open Finance and Financial Inclusion (Scoffi) says.

As the new administration assures that it will prioritize digital transformation on a national scale, ECCPScoffi believes it is high time that the government places more premium on the development of policies and the rollout of more open finance initiatives in the country.

Open finance allows industry players to create customer-centric products and provide better access to critical financial services such as savings, insurance and credit. This year, the Bangko Sentral ng Pilipinas (BSP) aims to bring at least 70 percent of adult Filipinos into the formal financial system, but as of 2022, 47 percent of the population remains unbanked.

“With multiple economic crises at present and a looming global recession ahead of us, financial inclusion should be emphasized now more than ever,” ECCP-Scoffi Chairman John Januszczak says.

Januszczak, who also sits as president of UBX, the leading open finance platform in the Philippines, adds that open finance can help in rebuilding the economy by strengthening digital businesses.

He cites a Google and Temasek study that predicts the Philippine digital economy, currently valued at $20 billion, is expected to maintain an upward trajectory to as much as $150 billion in the next decade.

“This trend highlights the urgent need for the government to accelerate its digital transformation initiatives,” Januszczak concludes.