UBX, the fintech venture studio and fund spun out of UnionBank of the Philippines, responds to the BSP’s drive for financial inclusion, promoting the adoption of innovative services through its first-in-industry platforms in eCommerce, lending, payments and now, in open finance.
Financial inclusion has become a policy objective of the government to further economic growth and reduce poverty especially for the most vulnerable sections in the country. However, gaps in creating a wholly inclusive ecosystem that connects all Filipinos to formal financial institutions still remain a challenge.
During the 2021 European-Philippine Business Summit, BSP Governor Benjamin Diokno shared the importance of open finance as a tool in closing the gap. The BSP-approved open finance framework allows “consent-driven data portability, interoperability, and collaborative partnerships among financial institutions and third-party providers (TPPs)” to enable industry players to provide customer-centric products and better access to key financial services such as lending and insurance.
UBX has been complimenting the open finance framework ever since its incorporation in 2018: “UBX allows smaller players to leapfrog across the scaling-gap to get them to a technology level that can place them, in some aspects, at par with the bigger players. UBX connects hundreds of smaller financial institutions to NRPS through our banking-as-a-service venture i2i and we can leverage this established reach to include the long tail of the financial services ecosystem in open finance. We include everyone: smaller FIs, non-banks, other service providers and their customers in the innovation promised by open finance.” shared John Januszczak, President and CEO of UBX. day on
UBX heads new committee on open finance and financial inclusion
The Special Committee on Open Finance and Financial Inclusion (SCOFFI), formed by the ECCP with UBX, will bring together policymakers and industry players to help advance BSP’s agenda. This will serve as the space for stakeholders to discuss relevant issues and spearhead actionable solutions that will shape the country’s policy environment and improve financial inclusion through technology. UBX, recognized by the Global Banking and Finance Review as the Fastest Growing Fintech Company in Southeast Asia for 2020 and 2021, is leading the new committee.
“In establishing the open finance ecosystem, a single body to oversee the efforts is necessary. As such, the open finance oversight committee is being constituted to perform this function. The committee shall formulate open finance standards and procedures.” BSP Governor Diokno announced.
UBX launches open finance platform, Xpanse
To further drive the momentum, UBX launches Xpanse, the newest addition to the fintech arm’s portfolio of first-in-industry ventures. Xpanse enables banks, fintechs and startups to build new financial solutions through APIs and customer controlled data sharing across hundreds of member institutions in the Philippines.
“UBX’s open finance infrastructure opens UBX’s aggregation of financial solutions and service providers to developers. Xpanse will not just connect developers to programmable services across hundreds of financial institutions in the Philippines, it will also connect customers and traditional financial markets to the world’s most innovative financial operating system and the future of banking.” shared John Januszczak, President and CEO of UBX.