The Hong Kong Monetary Authority will focus on ensuring security and safeguarding customer interests as the upcoming phases of its Open Banking API Framework will have more sensitive data and complex functions covered.
Since January 2019, more than 500 open application programming interfaces (APIs) have been made available by 20 participating retail banks in Hong Kong, which have allowed websites and mobile apps to provide services such as foreign exchange rate information, deposit rate and loan product comparison, the Hong Kong Monetary Authority (HKMA) said in an update on the progress of its Open API Framework.
HKMA launched the framework in July 2018 in a push to move its financial sector into the «smart banking» era, saying this would «ensure the competitiveness of the banking sector, encourage more parties to provide innovative and integrated services that improve customer experience.»
The Open API Framework is being implemented in four phases. Phase II, which will allow the processing of applications for banking products and services, is on track for its scheduled implementation by end October 2019, HKMA said in the statement.
Future Plans
HKMA said it wants to define a more detailed set of standards for Phase III and IV open APIs to facilitate secure and efficient implementation across the industry before setting out a concrete implementation timetable, and will work with the industry on details of API standardisation in the coming months, targeting a 2020 release of a set of technical standards.
«What the HKMA now sets for Phase III and IV will lay a solid foundation for further opening up of banking data and functions in a prudent manner while balancing the industry needs for API development. This move will help contribute to Hong Kong’s development as a smart city and, in conjunction with other Smart Banking initiatives the HKMA has announced, further strengthen our status as an international financial centre and fintech hub in the region,» Deputy Chief Executive Howard Lee said.
