Featured Product

    HKMA Sets Implementation Plan for Third and Fourth Phases of Open API

    May 13, 2021

    HKMA announced the implementation plan for Phase III (Account information) and Phase IV (Transactions) of the Open Application Programming Interface (API) framework. HKMA has decided to adopt a progressive approach to implementing Phase III and IV API functions that enable viable use cases involving lower implementation cost and risk. The Open API framework is intended to facilitate development and wider adoption of APIs by the banking sector and was introduced in July 2018.

    The Open API Framework has four phases—product information (Phase I), customer acquisition (Phase II), account information (Phase III), and transactions (Phase IV). Following the implementation of Phases I and II of the Open API Framework in January and Based on recommendations in the Accenture report titled “The Next Phase of the Banking Open API Journey," HKMA decided to adopt a progressive approach to implement phases III and IV. The progressive implementation model will allow the highest value solutions to be deployed in the market in a sequential, stable, and sustainable manner. The initial batch of API functions, covering deposit account information and online merchant payments, are expected to be implemented progressively by the 28 participating banks starting from December 2021.

    The report recommends that, since Phases III and IV cover sensitive data, including customer account information, the industry may consider developing further worked examples and/or principles (if necessary) on the scope of the common baseline around risk management, including the guidance on consent management, liability and dispute handling. While a bilateral Common Baseline approach is the most appropriate third-service provider governance arrangement for implementing phases III and IV for the time being, it will be desirable to assess other governance models in the future to keep pace with global developments and further maximize the benefits of banking Open APIs. Finally, ongoing customer education as well as the building of customer trust in banking Open APIs are important if use cases are to be successfully implemented. This is a shared responsibility of all ecosystem partners. 

    To promote secure and efficient implementation, HKMA will facilitate the Hong Kong Association of Banks (HKAB) to develop a set of standards covering key areas of customer experience and authentication, technical and data standards, information security, and operation standards. HKAB will also refine the Phase II common baseline document (for third-party service providers onboarding to facilitate the implementation of phases III and IV, enhancing the requirements, where necessary) to include the scope of Open API implementation phases III and IV. Both the standards that have been set and the refined common baseline document are expected to be published by the end of 2021.

     

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

    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