FSC Launches Pilot-Run of Open Banking System in South Korea
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 Article
NBB Publishes Results of Insurance Stress Test for 2019Related Articles
OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities
The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.
EBA Proposes Standards to Support Secondary NPL Markets
The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.
EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution
The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).
EBA Issues Standards for Crowdfunding Service Providers Under ECSPR
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.
EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution
The European Securities and Markets Authority (ESMA) published a paper that examines the systemic risk posed by increasing use of cloud services, along with the potential policy options to mitigate this risk.
EC Consults on PSD2 and Open Finance; EU Reaches Agreement on DORA
The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.
EC Mandates ESAs to Propose Amendments to SFDR Technical Standards
The European Commission (EC) has issued two letters mandating the European Supervisory Authorities (ESAs) to jointly propose amendments to the regulatory technical standards under Sustainable Finance Disclosure Regulation or SFDR.
EBA Examines Supervisory Practices, Issues Deposits Reporting Template
The European Banking Authority (EBA) published its annual report on convergence of supervisory practices for 2021. Additionally, following a request from the European Commission (EC),
SNB Updates NSFR Forms and FINMA Consults on Operational Risk Circular
The Swiss National Bank (SNB) published Version 1.2 of the reporting forms (NSFR_G and NSFR_P) on the net stable funding ratio (NSFR) of banks, along with the associated documentation.
US Agency Publications Address Basel, Reporting, and CECL Developments
The Farm Credit Administration published, in the Federal Register, the final rule on implementation of the Current Expected Credit Losses (CECL) methodology for allowances