Hong Kong Monetary Authority (HKMA) has launched its Open API Framework for the banking sector and plans to launch its own Open API later in the month.
The Open API Framework is one of seven initiatives from the HKMA which aim to prepare Hong Kong for Smart Banking. Open API’s empowers competitiveness within the banking sector, by encouraging more parties to provide innovative and integrated services that improve customer experience.
The program is similar to the Open Banking protocol which was launched in Europe at the start of the year.
During the consultation period, the HKMA received 41 responses from banks, technology/FinTech firms, industry associations, consulting firms, payment card scheme operators, as well as other interested parties. Attitudes were supportive of the policy direction, according to the organisation.
This initiative takes a risk-based principle and four-phase approach to support the adoption of the protocol. It will also outline expectations on how banks should onboard and maintain relationships with TSPs.
When the Framework is released, the HKMA expects banks to deploy Phase I within six months and then the second stage within 12 to 15 months. Upon receiving deployment roadmaps from banks, the HKMA will publish a roadmap of the various Open API functions from banks.
The HKMA will work closely with the industry over the next 12 months for the deployment timeline of phase II and IV.
HKMA chief executive Norman Chan said, “Open API is one small step for a bank, but a milestone for financial innovation in the banking sector. We hope that the Framework will provide specific guidance to enable collaboration between banks and TSPs, and ultimately bring new experience of innovative, convenient and safe banking services to customers.
“The HKMA is leading by example through making available a range of financial data and important information on the HKMA’s website in Open API format, in order to facilitate flexible retrieval and application of such information by stakeholders and the general public.”
To support the framework, the HKMA has launched an open API on its official website. It contains around 130 sets of information covering all financial data.
On launch there will be 50 sets available including statistics on Hong Kong dollar exchange rates, interest rates, the banking sector and the Exchange Fund. The remaining 80 sets will be deployed over the course of the next year.
A breakdown of the Open API initiative can be found here.
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
