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PhilStar Business

Open finance bill seeks creation of consumer data commission

A consumer data commission, to be chaired by a commissioner from the Securities and Exchange Commission, is eyed under a proposed measure seeking the mandatory use of alternative data to democratize finance.

Context & Analysis

The push for open finance in the Philippines reflects a reckoning with how credit is allocated. Traditional lenders have long relied on payroll records and property collateral, leaving micro-enterprises and informal workers priced out. Alternative data—utility payments, mobile money flows, e-commerce transactions—offers a way to build financial profiles where conventional records fall short. Without a unified governance framework, however, data sharing remains fragmented, raising questions about consent, security, and how algorithms assess risk.

Placing the Securities and Exchange Commission at the helm of a new consumer data commission signals a deliberate shift toward integrating fintech and capital markets into the regulatory architecture. The SEC already regulates capital market participants and licensed fintech intermediaries, giving it direct exposure to firms that would rely heavily on alternative data. This structure suggests lawmakers want a single oversight body that can standardize data usage across licensed financial entities while keeping consumer safeguards central.

For Philippine businesses, the practical impact will hinge on how quickly standardized data-sharing protocols are implemented. Retailers, logistics operators, and SMEs that struggle with working capital may gain access to faster credit if lenders can legally pull verified transaction histories. Companies will also need to audit their data practices, align with existing privacy mandates, and prepare for stricter compliance reporting. Institutions already building open data ecosystems will likely gain an edge, while those siloing customer information may face disruption.

Investors and operators should track how this measure navigates inter-agency jurisdiction. The Bangko Sentral ng Pilipinas has been advancing its own open banking guidelines, while the National Privacy Commission retains authority over data processing rules. Any overlap could delay rollout or create compliance friction. The next milestones will be committee hearings, stakeholder consultations with credit bureaus and fintech associations, and clarifications on whether the commission will issue binding standards or advisory guidelines. Businesses should treat open finance as a structural shift and begin mapping how alternative data could reshape financing and customer acquisition strategies.

Analysis by IJE Software — original commentary on the story above.

This is an excerpt. Read the full article at the original source:

Source: philstar.com

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