Aiming to promote digital innovations and to increase the availability of safer and more efficient channels for delivering banking, payment, remittance, investment, and other financial services, the Bangko Sentral ng Pilipinas (BSP) streamlines licensing requirements for the approval of electronic payment schemes.
This effort is in support of the BSP reform agenda which are meant to help the economy grow faster by facilitating a faster and higher volume of transactions.
According to the BSP, financial institutions under its supervision will no longer have to undergo the tedious regulatory approval process if they want to launch electronic payment services. Instead, they will now be able these features by complying with the basic requirements of the BSP.
Under the new licensing policy, financial institutions have to notify the BSP within 30 days of their intent to launch basic electronic payment services. The same is true for those who will offer services that will enable clients to access information on their deposit, loan, and other balances, or to receive funds through electronic means.
Advanced electronic payments scheme that will allow the client to transfer funds from one account to another and initiate other financial transactions will have to secure approval from the BSP.
Three steps towards approval
The first step for these institutions is to self-assess their compliance with the prudential criteria prescribed in the BSP licensing framework. Once they determined their compliance, the financial institution will have to submit a certification of compliance and request a confirmation of eligibility to offer electronic payment services. Lastly, they will need to provide documentary requirements so they can get a license.
The policy approved by the Monetary Board also requires these financial institutions to participate in automated clearinghouses such as InstaPay and PESONet, so they inter-operate their electronic payment systems.
The BSP believes that the streamlining of the licensing policy on electronic payments and the vigorous drive for inter-operability among financial institutions will result to a highly-efficient funds flow in the economy which, in turn, will support productive activities that will fuel economic growth.