The Hong Kong Monetary Authority has released an Open API framework, paving the way for bank data sharing with third party vendors.
The formulation of the shedule is one of the seven initiatives announced by the central bank in September 2017 to prepare Hong Kong to move into a new era of Smart Banking.
The Framework - released after consultation with banks and service providers - takes aa four-phase approach to implement various Open API functions and lays out detailed expectations on how banks should onboard and maintain relationship with TSPs to ensure consumer protection.
The HKMA expects banks to deploy Phase I Open APIs within six months and Phase II Open APIs within 12 to 15 months. It plans to publish a summary of deployment roadmaps of the Open API functions from the banks for reference by the market.
To set an example, the HKMA has released its own Open API, comprising around 50 sets of financial data published on the its website, such as statistics on Hong Kong dollar exchange rates, interest rates, the banking sector and the Exchange Fund, as well as press releases and Coin Cart schedule.
Norman Chan, chief executive of the HKMA, says: “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.”