Featured Product

    HKMA Assesses Progress in Implementation of Open API Framework

    July 31, 2019

    HKMA published a statement on the implementation progress and the future plans for the open Application Programming Interface (API) framework for the banking sector in Hong Kong. The framework, which aims to facilitate the development and wider adoption of APIs by the banking sector, was introduced in July 2018. Open API framework has four phases: product information (Phase I), customer acquisition (Phase II), account information (Phase III), and transactions (Phase IV). Phase I was launched in January 2019 and Phase II is slated for launch in October 2019.

    Since the launch of Phase I in January 2019, the 20 participating retail banks made available more than 500 open APIs, offering access to information of a wide range of banking products and services. Websites and mobile applications are increasingly making use of these open APIs in the provision of various services such as foreign exchange rate information and deposit rate and loan product comparison. The 20 participating retail banks will further launch Phase II open APIs by the end of October 2019 as scheduled to process applications for banking products and services. However, as in Phase I, it may take time for new applications using these open APIs to gradually emerge in the market, depending on the complexity of the API design of individual banks.

    Phase III and IV open APIs involve access to customer data and processing of transactions; therefore, implementation of these phases is more complex and requires stronger control measures. After discussing with the relevant stakeholders, examining the relevant international practices, and considering the experience in implementation of Phases I and II of the framework, HKMA prefers to define a more detailed set of standards for Phases III and IV open APIs to facilitate secure and efficient implementation across industry, before setting out a concrete implementation timetable. By standardizing data definitions and transfer processes, accurate data aggregation can be achieved and customer trust in using the related services can be enhanced. To this end, HKMA will work with the industry on details of API standardization in the next few months and will then publish a set of technical standards in 2020. Meanwhile, some banks and third-party service providers are collaborating on a bilateral basis for early adoption of open APIs under Phases III and IV. HKMA will keep abreast of market responses and international developments of open APIs to review and refine the implementation plans as necessary.

     

    Keywords: Asia Pacific, Hong Kong, Banking, Open API Framework, Fintech, HKMA

    Related Articles
    News

    BCBS Amends Guidelines on Sound Management of AML/CFT Risks

    BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).

    July 02, 2020 WebPage Regulatory News
    News

    US Agencies Finalize Amendments to Swap Margin Rule

    US Agencies (Farm Credit Administration, FDIC, FED, FHFA, and OCC) finalized changes to the swap margin rule to facilitate implementation of prudent risk management strategies at banks and other entities with significant swap activities.

    July 01, 2020 WebPage Regulatory News
    News

    PRA Letter Sets Expectations on Approach to Managing Climate Risks

    PRA published a letter that builds on the expectations set out in the supervisory statement (SS3/19) on enhancing banks' and insurers' approaches to managing the financial risks from climate change.

    July 01, 2020 WebPage Regulatory News
    News

    EBA Guidelines on Treatment of Structural Foreign Exchange Under CRR

    EBA finalized the guidelines on treatment of structural foreign-exchange (FX) positions under Article 352(2) of the Capital Requirements Regulation (CRR).

    July 01, 2020 WebPage Regulatory News
    News

    FSB Issues Statement on Impact of COVID-19 Crisis on Benchmark Reform

    FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition.

    July 01, 2020 WebPage Regulatory News
    News

    IAIS Publishes List of Internationally Active Insurance Groups

    IAIS published the list of Internationally Active Insurance Groups (IAIGs) publicly disclosed by group-wide supervisors.

    July 01, 2020 WebPage Regulatory News
    News

    FED Temporarily Revises FR Y-9C With Respect to PPPLF and CARES Act

    FED has temporarily revised the reporting form on consolidated financial statements for holding companies (FR Y-9C; OMB No. 7100-0128).

    July 01, 2020 WebPage Regulatory News
    News

    EC Launches Consultation on Review of Solvency II Directive

    EC launched a consultation on the review of the key elements of Solvency II Directive, with the comment period ending on October 21, 2020.

    July 01, 2020 WebPage Regulatory News
    News

    ECB Consults on Supervisory Approach to Consolidation in Banking

    ECB launched a consultation on the guide that sets out supervisory approach to consolidation projects in the banking sector.

    July 01, 2020 WebPage Regulatory News
    News

    IAIS on Package for 2020 Data Collection on ICS and Aggregation Method

    IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections.

    June 30, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5425