If you strip away the jargon, the regulatory frameworks, and the complex APIs, Open Finance is actually a very simple concept.
It boils down to one fundamental truth: The data financial institutions hold on their customers belongs to the customers, not the financial institutions.
It is really that simple.
I discuss this extensively in the video below (jump to the 15:37 mark for the deep dive), but I want to highlight why this shift is so critical for us here in the Philippines.
Why the Philippines Needs a Broader View#
While the concept of data ownership is universal, its application in the Philippines requires a much broader lens. In many developed markets, Open Banking focuses on aggregating bank accounts. But here, that isn’t enough.
To truly unlock financial inclusion, we need to look beyond traditional banking data. We require a system where consumer consent unlocks a massive variety of data points—from utility payments to e-wallet transactions.
Why? Because we have a massive population of “invisible” consumers who are financially responsible but lack a formal credit history.
We need access to huge amounts of data to uncover patterns: the subtle digital footprints that attest to a person’s credibility and creditworthiness. By analyzing these patterns, we can prove that a customer is reliable, even if they’ve never held a credit card in their life.
Open Finance isn’t just about moving data; it’s about moving people from “unbanked” to “bankable.”
Watch the section starting at 15:37 to understand how this simple shift in ownership can revolutionize our financial landscape.