The Bangko Sentral ng Pilipinas (BSP) has issued a circular introducing a new regulatory framework for digital financial marketplaces. The circular sets out the rules governing the establishment and operation of digital financial marketplaces by BSP-supervised financial institutions (BSFIs), reflecting the BSP’s efforts to encourage digital innovation while strengthening consumer protection and financial stability.
A digital financial marketplace is essentially a digital platform through which customers can access and compare financial products and services offered by the platform operator and third-party financial service providers. The framework recognizes the increasing role of digital platforms in the delivery of financial services and seeks to establish safeguards as these platforms become more integrated into customers’ financial lives.
One of the circular’s key features is the emphasis on consumer choice and platform neutrality. A digital financial marketplace must provide customers with access to products from at least three financial service providers that are not affiliated with the operator’s group or conglomerate. This requirement is intended to prevent marketplaces from becoming merely digital channels for the operator’s own products or those of its affiliates. Operators are likewise expected to present products and services in a fair, transparent, and impartial manner, allowing customers to make informed decisions based on their individual needs.
The circular also establishes licensing and prudential requirements for marketplace operators. Operating a digital financial marketplace is treated as a regulated activity requiring appropriate BSP authority. Among the requirements is a minimum net worth or combined capital of ₱1 billion, together with adequate technological infrastructure, internal controls, and risk management systems. Operators must also ensure that the financial products and services offered through their platforms are distributed in accordance with applicable regulatory requirements.
The circular places considerable emphasis on governance and risk management. Marketplace operators are expected to establish appropriate governance structures and controls covering operational, technology, cybersecurity, reputational, and financial crime risks. They must also maintain effective policies for the accreditation, monitoring, and evaluation of third-party providers. This is particularly significant because the marketplace operator may serve as the principal digital interface between customers and multiple financial service providers.
Consumer protection and data governance are likewise central to the framework. Operators are expected to maintain appropriate mechanisms for customer complaints and redress, protect customer information, and ensure that financial data is shared only with the customer’s consent and through secure channels. These requirements reinforce the BSP’s broader policy direction toward responsible data sharing and greater consumer control over financial information.
The circular also permits certain non-financial products and services to be offered through digital financial marketplaces, provided that these offerings are connected to or add value to banking or other financial services. At the same time, certain products and activities, including gambling-related offerings, are excluded from the framework.
Existing operators are given a transition period to comply with the new requirements, including the requirement to onboard the prescribed number of unaffiliated providers.
The circular represents an important development in the regulation of digital finance in the Philippines. For BSFIs and their technology and financial-service partners, compliance will require more than simply obtaining regulatory approval. It will call for careful attention to governance, third-party arrangements, cybersecurity, consumer protection, product presentation, and data management. Ultimately, the circular seeks to ensure that innovation in digital financial services proceeds alongside meaningful safeguards for consumers and the broader financial system.
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