A Memorandum of Agreement (MOA) was signed by the Bangko Sentral ng Pilipinas (BSP) and the University of the Philippines (UP) for a project on the use of big data in central banking.
According to a recent press release, BSP Governor Benjamin E. Diokno and UP Chancellor Michael L. Tan represented their respective institutions during the signing.
About the Initiative of Use of Big Data in Central Banking
- The central bank, which is a data-driven institution, envisions of using big data in formulating appropriate and timely policies for the effective delivery of its core mandates on monetary and financial stability.
- BSP’s role in maintaining price stability, which is conducive to a sustainable economic growth while promoting and preserving monetary stability, is critical to support and sustain in the Philippine economy.
- With the ever increasing volume and frequency of various types of data that need to be monitored, the central bank reportedly needs a system and infrastructure.
- These would capture, process and analyse both structured and unstructured data in order to have a better understanding of what is happening in the market and be able to make more timely decisions and policies.
- Big data are high volume, high velocity, high variety structured and unstructured data sets, which are difficult to utilise through traditional means.
- Central banks worldwide are incorporating big data as a supplement to official statistics through leading and near-real time economic and financial indicators and early warning indices.
To make use of big data in its operations, the central bank will collaborate with the University and its multi-disciplinary team of seasoned experts on big data.
The project will be implemented by the University’s National Engineering Centre (UPNEC) and will have Professor Adeline A. Pacia as Project Leader.
The 12-month long BSP Big Data Project will focus on the theoretical, methodological, and operational aspects of institutionalising big data in the central bank.
Several key outputs of the project were enumerated. These are:
- Recommended Information Technology (IT) architecture and capacity-building schemes
- Big data governance principles
- Big data system prototypes
Advanced Tech for Data Collection
- In other news, advanced technologies will further enhance the data collection methods of the Philippine Statistics Authority of the Bangsamoro Autonomous Region in Muslim Mindanao (PSA-BARMM).
- These advanced technologies will include unmanned aerial vehicles (UAV), or more popularly known as drones, and Global Positioning System (GPS) devices.
- The announcement was made during the recent kick-off of the 30th National Statistics Month (NSM) at the Bangsamoro Government Centre.
- Plans in the near future also include venturing into other statistical innovations such as business intelligence, analytics, visualisation, machine learning, and Internet of Things (IoT).
- These will boost the overall improvement of data in the system.
- Ultimately, the Bangsamoro people will be assured of the achievement of its long-term vision of a simple and comfortable life for all BARMM constituents through effective innovations.
- The NSM celebration is conducted in October every year pursuant to Proclamation No. 647, s.1990, signed by then President Corazon C. Aquino.
- This year’s celebration is anchored on the theme, “Data Innovation: Key to a Better Nation.”