House Bill No. 9149 is a bill that promises financial inclusion by way of easing the hurdle of accessing financial and transactional data for Filipinos.
Currently, financial information is mostly kept locked within financial institutions; this reduces the person’s degree of securing loans, application to banks, among other, because of the opacity of their creditworthiness vis-a-vis records that are inaccessible.
The bill opens with an explanatory note, denoting the situation as of now:
“The continued digital transformation of the Philippine economy has reshaped how Filipinos save, borrow, pay, remit, and access financial services. Financial data has become a key economic asset. Yet, for many consumers, this data remains locked within individual financial institutions, limiting their ability to obtain cheaper, faster, and more inclusive financial products.”
Open finance is the aim of the bill. Through the means of open finance, Filipinos can secure alternative loans, through a more comprehensive sharing of data. It benefits the underbanked, the small businesses, the overseas Filipino workers, and the rural banker that often lack proper credit history.
It is especially relevant as the proportion of banked individuals (or those who are seeking banking services) is increasing; and open finance allows them to benefit better from an institution’s services—be it from a physical or a digital one.
The bill further expands that it promotes positive competition. By democratizing information, open finance allows fintech and other institutions to innovate through better products, services, and lower costs or hurdles. Ultimately, the bill is one that envisions a financial economy where consumers’ right to information is paramount. This is what is currently lacking in the finance sphere. This is what the Filipinos deserve.
Fintech companies are throwing their weight towards the bill. One of its strong proponents is Todd Schweitzer of FintechAlliance.ph.
Recognizing the advantage this provides to both evolving institutions and underbanked Filipinos, Schweitzer comments that “the digital rails and data privacy standards are in place, demand is clear, and this bill would establish a pioneering framework to unlock a more consumer-centric financial services industry.”
Why is Consumer Data Hard to Reach?
Institutions keep data with a goal of rigorous security. There are protocols and controls in place to protect consumer data—that is, the measures to mitigate leaks and work towards keeping data privacy intact is the driving factor behind keeping information (usually) within closed doors. The logic behind this is therefore that of security and data privacy.
Open Finance: Concerns
Once open finance evolves, the persistent concern of data security and privacy would be magnified as it partially works against the thesis of traditional record-keeping and management; where privacy is the core concept.
However, the concerns—through bill 9149—are recognized. Thus, it has certain provisions that controls are kept in place to still maintain security of financial records despite the openness of such.
There will be the creation of an open finance council consisting of the National Privacy Commission (NPC), Philippine Competition Commission (PCC), Securities and Exchange Commission (SEC), Department of Information and Communications Technology (DICT), and the Insurance Commission (IC). These institutions shall work together to ensure stability, innovation, and security of data.
The oversight of these departments covers data privacy, competition and non-discrimination, financial inclusion, consumer protection and liability, and cross-border data transfers.
What is Next for Financial Institutions, Customers?
Once rolled in, the Open Finance Bill can elevate the services of Philippine fintech companies, allowing for more room for technological and digital innovation for the country’s banking system. Fintech companies, or as general, the financial industry, never stop thinking for more ways to underserve communities, unbanked population, and Micro, Small, and Medium Enterprises (MSMEs).
By the benefits and promises of Open Finance Bill, the country will successfully overcome a huge hurdle and gain benefit from financial inclusion. Making a secured digital finance infrastructure promotes an interoperability system of finance and culture, a form of innovation by connecting separate banking and fintech services.
While concerns are present, it is important to note that the Bangko Sentral ng Pilipinas (BSP) has openly expressed the support for the proposed bill and has even established an Open Finance Framework through Circular No. 1122, s. 2021.
The BSP Governor, Benjamin Diokno even stated in a virtual briefing:
“With open finance, Filipino consumers will be able to have a consolidated view of their personal data, and their financial transactions, access more affordable services that fit their needs, and ultimately make more informed financial choices.”
Further, BSP believes that this bill will not only provide financial inclusion but also give opportunities for data-driven collaborative partnerships among entities who adhere to the same set of standards and regulations set by the BSP.
DOPAY, A Financial Solutions Innovator
DOPAY believes in financial inclusion and has even set its mission to promoting financial inclusion for everyone, everywhere. Powered by blockchain technology, DOPAY ensures that transactions, remittance, and crypto trading can be done by anyone. And licensed as an Electronic Money Issuer (EMI) and Virtual Assets Service Provider (VASP) by Bangko Sentral ng Pilipinas, DOPAY ensures to always commit to providing secured and verified transactions.
In addition, DOPAY is also a financial solutions innovator as DOPAY provides borderless transactions by using cryptocurrency processed by blockchain technology. One of the DOPAY’s services is International Remittance, wherein families living on separate borders can send remittance anytime by using the platform, and for a low rate too.
DOPAY also promotes financial inclusion by its newly rolled out program, the DOPAY Referral program. Where referrers can earn up to 70.00 ETH per referred user, and referred users can earn up to 30.00 ETH, terms and conditions provided. This way, both referrers and referred users can earn by joining a legitimate program specifically curated for DOPAY Users.
Here in DOPAY, we commit to providing services which aim for financial inclusion for anyone in the Philippines, and even abroad.
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