BSP sets rules for digital financial marketplace activities

THE BANGKO SENTRAL ng Pilipinas (BSP) has released guidelines covering banks’ and electric money issuers’ (EMIs) digital marketplace activities, paving the way for them to offer products on a single platform to make the financial sector more inclusive and customer-centric.

Circular No. 1237 Series of 2026 signed by BSP Governor Eli M. Remolona, Jr. on June 16, outlines the rules for the adoption and participation of BSP-supervised financial institutions (BSFIs) in digital financial marketplaces or platforms.

This will facilitate banks’ and EMIs’ offering of their own financial and nonfinancial products and services, as well as those from third-party providers, via their own online platforms to make these solutions more accessible.

The framework also aims to ensure that risks related to these activities are adequately managed and that consumer interests are safeguarded.

“The Bangko Sentral recognizes the emergence of new business models and strategic collaborations that harness digital technologies to drive innovation and deepen financial inclusion,” the central bank said.

“Through digital financial marketplaces, customers are empowered to make better and informed financial decisions by giving them access to a broad range of products and services.”

BSFIs can be both marketplace operators and providers of financial products in these digital marketplaces.

The BSP said a bank or an EMI-NBFI (nonbank financial institution) may operate a digital financial marketplace, which must include at least three providers that are not affiliated with or part of the BSFI’s group or conglomerate.

A BSFI can own the platform, which is typically web- or app-based, or tap third-party providers to develop or maintain it.

Products or services that can be offered via digital financial marketplaces include, among others, simple deposit and insurance products; loans for consumers and micro, small and medium enterprises; electronic money and payment cards like cash or debit cards; and pooled funds.

Meanwhile, products or services connected with gambling activities like online casinos or betting, electronic gaming “or any activities that are not aligned with the promotion of financial soundness or well-being of customers, shall not be displayed or presented in the marketplace operated by a BSFI.”

Trust entities are also permitted to present their unit investment trust funds within a digital financial marketplace if they comply with the broader operational guidelines.

“The activities in a digital financial marketplace shall be limited to the presentation or display of the products and services of accredited FSPs (financial service providers) and SPPs (service or product provider), as well as the presentation, sale and distribution of the products and services of the marketplace operator,” the BSP said.

“The marketplace shall enable customers to compare and select products and services from different FSPs/SPPs that best meet their needs. To ensure neutrality and impartiality, the marketplace operator shall not favor affiliate or related companies in the presentation. comparison, recommendation, or access to products and services in the digital financial marketplace.”

Marketplace operators can also perform ancillary functions like preliminary screening, initial credit underwriting or assessment of borrowers’ creditworthiness, and customer identification and verification.

They are likewise allowed to facilitate payments and settlements of transactions, although the final processing and approval of these should be done by the specific product provider.

To qualify as an operator, a bank or an EMI must meet all prudential criteria, hold an advanced electronic payments and financial services license, have a net worth or combined capital of at least P1 billion, and have an adequate and reliable information technology (IT) infrastructure and solutions commensurate to its digital marketplace operations and a robust risk management system.

They should also be registered as operators of payment systems and have an approval or the appropriate license to distribute the products and services they want to offer in their marketplaces.

The BSP added that the operation of a digital financial marketplace is an authorized activity for institutions with a Type A license. This means BSFIs must hold a Type A license before incorporating digital marketplace operations into their authorized business activities.

Meanwhile, the guidelines also require BSFIs to implement strict risk management and comply with consumer protection and data governance standards on privacy, sharing, and portability.
They must manage operational and reputational risks, as well as those emerging from IT, money laundering, and terrorist and proliferation financing.

All existing digital marketplace participants have a one-year transitory period to align their operations with the new regulations and standards.

Meanwhile, operators will have a maximum of two years from the circular’s effectivity to onboard the required minimum of three non-related providers in their respective platforms. — Katherine K. Chan