HKMA underlines next steps in Open API Framework introduction

The Hong Kong Monetary Authority (HKMA) has revealed its implementation plan for the third and fourth phases of its Open API Framework.

First issued in July 2018, the Open API Framework has set out a four-phase approach to help banks implement Application Programming Interfaces (APIs) to enable third-party service providers to leverage bank-generated data to provide financial services.

The first and second phases, which included making bank product information available via APIs and enabling customers to apply for financial products via third parties, were implemented in January and October 2019, respectively.

According to HKMA, the third and fourth phases of the approach will be implemented progressively by 28 participating banks from December 2021 onwards. These phases will make account information available via APIs and allow transaction capabilities.

The HKMA worked alongside Accenture with the latter serving as an external consultant to scrutinise and recommend ways forward for the implementation of the final two phases. Through a published study report, Accenture recommended a progressive, gradual approach.

The HKMA highlighted app-to-app payments via Faster Payment System will be introduced by December of this year, while API functionality for deposit account information will be launched by March 2022 for corporate and SME customers and by June of next year for retail customers.

In order for secure implementation, the Hong Kong Association of Banks will develop a set of standards that cover specific areas of customer experience and authentication, information security, operation standards and technical and data standards.

To promote secure and efficient implementation, the HKAB (Hong Kong Association of Banks) will develop a set of standards covering key areas of customer experience and authentication, technical and data standards, information security, and operation standards.

Copyright © 2021 FinTech Global

Enjoying the stories?

Subscribe to our daily FinTech newsletter and get the latest industry news & research

Investors

The following investor(s) were tagged in this article.