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BSP urges fintechs to take advantage of e-payments rise

September 03, 2021 - Friday 9:09 PM by GDM

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Financial technology firms (fintechs) should seize opportunities presented by the rise in digital transactions and issuance of supportive e-payment policies in developing innovative solutions, the Bangko Sentral ng Pilipinas said Friday. 

"Strike while the iron is hot. Tap into your innovation DNA to create worthwhile solutions,” BSP Governor Benjamin Diokno said in a statement.

“The conditions are ripe and the time to act is now,” Diokno added.

Fintechs are companies that offer breakthrough platforms, services, and digital systems to automate, expand and facilitate access to financial services. 

According to Diokno, the BSP noted a significant spike in digital transactions amid the pandemic. 

As of end-July 2021, InstaPay transaction volume and value rose respectively by 64% and 103% relative to the same period in 2020. 

Meanwhile, PESONet transaction volume and value also grew by 190% and 50%, respectively, as of end-July 2021. 

At the same time, the BSP issued policies on digital banking to encourage better delivery of financial services of digital banks without the constraints of brick-and-mortar operations, and on open finance to promote greater interoperability and collaboration among financial institutions and fintechs. 

Furthermore, to revisit, recalibrate, and fortify existing policies, the BSP is undertaking policy initiatives to amend its E-Money and Technology Outsourcing Circulars, and formalize the BSP’s test-and-learn approach or regulatory sandbox. 

BSP is also transitioning to a new supervisory rating framework, which hinges on stronger offsite supervision.