FSC launched pilot-run of the open banking system in the banking sector. During the pilot-run period, the government will conduct a comprehensive assessment of the system and make adjustments if necessary before opening the system to fintech firms on December 18. At first, open banking will be offered by ten banks and it will be gradually expanded to the other eight banks and fintech businesses. The government had announced its plans to establish an open banking system in the country on February 25, 2019, to allow fintech firms the access to bank payment network through open Application Programming Interface (API) initiatives.
In 2020, the government will review an expansion of the open banking system to non-bank financial institutions, including mutual finance and postal service. The government plans to diversify API functions and will review a possible expansion to data sectors through an increased connectivity with My Data service. Fintech firms attempting to participate in the open banking system are subject to a security check by the Financial Security Institute. The storage capacity of the current operating system will be upgraded from 4TB to 60TB before the system becomes open to fintech firms and a 24-hour "Fraud Detective System" will closely monitor fraudulent activities and automatically shut down suspicious transactions.
The first ten banks to offer open banking will be NH Bank, Shinhan Bank, Woori Bank, KEB Hana Bank, IBK, KB Kookmin Bank, Busan Bank, Jeju Bank, Jeonbuk Bank, and BNK Kyongnam Bank. The eight institutions to be part of the further the gradual expansion are KDB, SC Bank Korea, Citibank Korea, SH Bank, Daegu Bank, Kwangju Bank, K Bank, and Kakao Bank.
Related Link: Press Release (PDF)
Keywords: Asia Pacific, Korea, Banking, API, Open API Framework, Fintech, Regtech, Pilot-Run, FSC
Previous ArticleNBB Publishes Results of Insurance Stress Test for 2019
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.
Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.
The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.
The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.
The European Banking Authority (EBA) published a methodological guide to mystery shopping.
The Australian Prudential Regulation Authority (APRA) released a letter to authorized deposit-taking institutions to provide an update on key policy settings for the capital framework reforms, which will come into effect from January 01, 2023.
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report that assesses the business continuity planning activities of financial market infrastructures or FMIs.
The Bank of England (BoE) published questions and answers (Q&A) on OSCA to BEEDS migration for statistical reporting as well a presentation from the project overview session held with statistical reporters.
The Basel Committee on Banking Supervision (BCBS) is consulting on a technical amendment to the Basel Framework to reflect a new process reviewing the global systemically important bank (G-SIB) assessment methodology.