Hong Kong Financial Authority Reveals Implementation Roadmap for Ongoing Growth of Open API Framework

The Hong Kong Financial Authority (HKMA), which is Hong Kong’s central banking establishment that experiences on to the Monetary Secretary, has introduced the implementation plans for the third and fourth phases of its Open API framework.

The subsequent steps within the Open API Framework embody account data for the third section and transactions for the 4th section.

After the implementation of the preliminary two phases of the Open API framework in January 2021 and October 2019 respectively, the initiative’s improvement had been suspended because the HKMA was trying to handle potential points associated to knowledge and privateness governance.

HKMA has reportedly been working with an impartial marketing consultant as a way to assess and suggest the suitable method to transfer ahead for the implementation of phases three and 4, whereas contemplating the adoption of worldwide greatest practices (but in addition contemplating the home market situations).

Based mostly on the recommendations discovered within the report (titled, The Subsequent Section of the Banking Open API Journey), the HKMA has made the choice to tackle a progressive method to finishing phases three and 4’s API features that may assist initiatives similar to diminished implementation prices and decrease total threat.

The primary group of API features, which goal to cowl deposit account data and on-line service provider funds, could also be accomplished by the 28 collaborating banking establishments (starting in December of this yr).

As a way to assist safe and environment friendly implementation of those options, the HKMA will work cooperatively with the Hong Kong Affiliation of Banks (HKAB) as a way to create a set of pointers for buyer expertise and authentication, technical and knowledge requirements, data safety, and operation requirements as effectively.

The HKAB will likely be updating the frequent baseline doc to incorporate the scope of Open API section three and Four implementation – which will likely be printed by the top of this yr.

Howard Lee, Deputy Chief Government on the HKMA, acknowledged:

“As we put together to enter the subsequent section of the banking Open API journey, we might endeavor to develop an implementation plan to encourage Open API adoption inside the banking trade by hanging steadiness between guaranteeing correct threat administration and satisfying unmet buyer wants. The HKMA will proceed to facilitate the strengthening of belief throughout all banking Open API members and promote a wholesome ecosystem conducive to monetary innovation.”