must be effectively managed and that the financial system remains safe and sound. 1 / 4 bis central bankers'speeches the first lane refers to collaborative engagements. the continuing collaboration with industry players and other financial regulators represents a “ whole - of - government approach ”, ensuring policy consistency and minimizing, if not fully preventing, regulatory arbitrage. with this in mind, the bsp openly engages with fintech players and innovators through a flexible “ test and learn ” environment or the “ regulatory sandbox ” that enables us to fully understand emerging business models while assessing attendant risks. i will not dwell on specifics but generally, the framework consists of five important steps commencing from the enabling stance adopted by the bsp during initial engagement with the applicant, guided and clear rules for implementation, until continuing monitoring of matured services. with such an approach, we are able to timely employ risk - mitigating actions and craft appropriate policies revolving around consumers ’ welfare and protection and secure financial system. the middle lane refers to our capacity building initiatives. in 2018, we established a dedicated financial technology subsector ( ftss ) to institutionalize the operational and cyber - resilience of the financial system. under ftss is the technology risk and innovation supervision department ( trisd ), which is primarily responsible for conducting onsite and offsite it supervision of regulated entities, as well as maintaining a comprehensive and flexible regulatory framework relating to it supervision. trisd is also in charge of cybersecurity surveillance and promoting digital or fintech innovation through bsp ’ s regulatory sandbox. equally important is the payment systems oversight department ( psod ) which is mainly responsible for the payments oversight, licensing and policy development for a safe, efficient and reliable national payment system. it espouses on the use of technology as enabler of innovation in payment systems and is the lead in enforcing a holistic payment oversight framework, including the national retail payment system. we are also in the midst of implementing solutions that make use of artificial intelligence and machine learning for regulatory and supervisory processes. these regtech and suptech tools aim to augment areas of risk management, regulatory reporting, consumer complaint oversight and regulatory compliance automation. this includes a chatbot, an automated complaint - handling system which uses predictive analytics to address consumer concerns and an api that automates the collection, processing, and analysis of data from supervised institutions. supervised entities that cannot immediately migrate to the api - based reporting can use the fi portal

felipe m medalla : setting the future and next steps for open finance speech by mr felipe m medalla, governor of bangko sentral ng pilipinas ( bsp, the central bank of the philippines ), at the bangko sentral ng pilipinas, world bank, and international finance corporation's joint event on open finance, manila, 21 june 2023. * * * to paramita dasgupta [ of the international finance corporation ], maria lourdes jocelyn pineda [ of the open finance oversight committeea€ “ transition group ], fellow members of the monetary board, friends from the banking industry, and colleagues, good morning. thank you for joining us in this event, themed " philippine financial sector resilience strategy : open finance - driving digitalization and cybersecurity. " the promise of open finance to put it very simply, what are the gates? the gates, of course, are more competition and the other is data - sharing, which will actually improve our ability to assess borrowing capacity and so on and so forth. at the center of all this is the consumer, the individual owning the data. it is a two - way thing, right? there are times when you [ the bank ] have good information on the clients. of course, you do not want to share it with others. this is what is happening in a lot of closed systems. so, how do you get the benefit of both? more competition, more data - sharing. recognizing the risks : cybersecurity risks threaten trust and confidence in the system if you think people are already afraid of the current system because of all of these [ cybersecurity risks ] that can happen, you share your otp [ one - time password ] with somebody, and then, all of a sudden, you lost 100, 000. by the way, some of the people i know who lost money are very smart. they are just too busy. i know a thoracic surgeon who was so busy and so trusting that he shared his otp and lost 200, 000. these are some concerns that have to be addressed. of course, you should also be able to say what happens when things go wrongaccountability. i have a good example. i will not name the company, but it has been in the news. [ for ] some account holders [ of an electronic wallet ( e - wallet ) ], their money was transferred to bank accounts [