Featured Product

    BIS Explores Development of API to Implement Open Finance Solutions

    December 08, 2020

    BIS published a report that explores the development of an identification and authentication application program interface (API) that could be used to implement privately and publicly administered open finance solutions with seamless scalability. This report is intended to serve as a general reference for individual countries that want to develop their own payments initiatives. However, the decision on which type of API architecture should be implemented depends on the characteristics of each jurisdiction. Comments on this report should be sent, preferably, by January 31, 2021.

    The report highlights the importance of open finance for the development of the financial system, lists the trade-offs regarding implementation schemes for open finance, and serves as background for the other, more technical documents; these documents include a technical flow diagram of identity validation based on a centralized API architecture (unpublished), general hardware requirements to implement the centralized solution (Annex A), and technical requirements for third parties on the central validator API architecture (Annex B). The Technical Task Force of the Consultative Group on Innovation and the Digital Economy (CGIDE TTF) has been analyzing an API scheme based on mobile devices to support the remote, secure, and efficient identification and authentication of users of financial institutions. The analyzed scheme is based on the establishment of a central validator that allows secure relationships to be created between financial institutions and third parties, without the need for them to come into direct contact with each other. This is accomplished by establishing secure connections between the central validator and third parties on the one hand, and between the financial institutions and the central validator on the other. The security schemes used by the central validator would ensure that all connections in the scheme are established between previously certified entities for the orderly provision of financial services through third parties. 

    The report describes and proposes in detail the technical requirements for the key elements of the analyzed API scheme (that is, the central validator, third-party apps and servers, authentication app and servers). It also details the technical requirements for the third parties interested in participating in an API scheme like the one analyzed in this report. While the CGIDE TTF considers that the analyzed implementation is viable, this is not the only possible scheme and the ideal solution for each jurisdiction will depend on several factors, such as the level of involvement of the industry in the design of the API architecture, the powers given by law to the authority leading its implementation, the target use cases that the open finance ecosystem expects to cover, or the desired user experience. In this regard, the report discusses the open finance models supported by different API architectures, including those in Brazil, EU (revised Payment Services Directive), India, UK, and Singapore. Thus, this document should only serve as a general reference for individual countries that want to develop their own payments initiatives and, consequently, no member is endorsing the adoption of open banking or the analyzed identification and authentication API and central validator scheme.

     

    Related Link: Report

    Keywords: International, Banking, PMI, API, Open Finance, Fintech, Regtech, BIS

    Related Articles
    News

    EBA Publishes Final Regulatory Standards on STS Securitizations

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.

    September 20, 2022 WebPage Regulatory News
    News

    ECB Further Reviews Costs and Benefits Associated with IReF

    The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.

    September 15, 2022 WebPage Regulatory News
    News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).

    September 15, 2022 WebPage Regulatory News
    News

    MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures

    The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.

    September 15, 2022 WebPage Regulatory News
    News

    BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules

    The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.

    September 15, 2022 WebPage Regulatory News
    News

    IOSCO Welcomes Work on Sustainability-Related Corporate Reporting

    The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)

    September 15, 2022 WebPage Regulatory News
    News

    BoE Allows One-Day Delay in Statistical Data Submissions by Banks

    The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.

    September 14, 2022 WebPage Regulatory News
    News

    ACPR Amends Reporting Module Timelines Under EBA Framework 3.2

    The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.

    September 14, 2022 WebPage Regulatory News
    News

    ECB Paper Discusses Disclosure of Climate Risks by Credit Agencies

    The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)

    September 13, 2022 WebPage Regulatory News
    News

    APRA to Modernize Prudential Architecture, Reduces Liquidity Facility

    The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.

    September 12, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8514