BSP streamlines licensing requirements for e-payment, financial services

The Bangko Sentral ng Pilipinas (BSP) on Friday said it has streamlined the licensing licensing requirements for electronic payment and financial services.

In a statement, the BSP said the policy-setting Monetary Board has approved the streamlining of requirements for central bank-supervised financial institutions that intend to offer electronic payment and financial services.

The central bank's move is in line with its reform agenda of promoting digital innovations and increasing the availability of safer and more efficient channels for delivering banking, payment, remittance, investment, and other financial services.  

Under the enhanaced licensing policy, financial institutions provide basic services or those that enable clients to access information on their deposit, loan, and other accounts or receive funds in electronic means shall simply notify the BSP within 30 days prior to the launch of those services. 

The electronic payment and financial services that require prior BSP approval are the advanced services which allow clients to transfer funds from one account to another and initiate other financial transactions.

The central bank said the prescribed approval process typically requires only three steps:

• The BSP-supervised financial institutions shall self-assess compliance with the prudential criteria set out in the licensing framework of the central bank.
• If determined to be compliant, the financial institutions shall submit a certification of compliance and request a confirmation of eligibility to offer electronic payment and financial services from the BSP.
• They shall submit certain documentary requirements to eventually obtain an electronic payment and financial services license.

To ensure a smooth transition towards the implementation of the amended electronic payment and financial services licensing policy, the financial institutions with existing licenses shall re-register the following services with the BSP on March 31, 2019:

• all their previously-licensed and operational electronic payment and financial services as of March 31
• those that have been licensed but have yet to be launched until September 30.

Likewise, financial institutions shall submit periodic prudential reports which are aimed at strengthening the BSP's surveillance and supervisory mechanisms and ensuring the availability of information for policy development and other regulatory purposes.

The newly-approved policy also requires financial institutions to make their electronic payment and financial service with funds transfer functionality interoperable by participating in automated clearing houses such as InstaPay and PESONet. 

To optimize the benefits of interoperability, the BSp said it also directs financial institutions to adopt marketing strategies that effectively promote electronic payment and financial services.

With its streamlined licensing policy on electronic payment and financial servicesand more vigorous drive for interoperability among the financial institutions, the BSP said it looks forward to a highly efficient funds flow in the economy, supporting productive activities that fuel economic growth. — RSJ, GMA News