Open banking is going global. PSD2 is driving open banking across Europe, and UK Open Banking in the United Kingdom, however, other countries and regions are also looking to adopt similar principles with the ultimate view of delivering better customer financial outcomes.
The EU is working towards implementation of PSD2 and open banking in 2019. There are a number of pan European industry groups working to define API standards, message structures and data flows to support PSD2 and open banking. Konsentus is actively following and engaging in these discussions to ensure our solution meets the local regulatory requirements and structures.
Stakeholders in the United States are inching toward a more formalized regime for third-party data sharing. These stakeholders include financial institutions, consumer-facing fintech services, trusted intermediaries, regulators, lawmakers, industry working groups (such as FS-ISAC and NACHA), and of course, consumers. Large banks are entering into data sharing arrangements with individual partner organisations, however, there is no doubt that open banking, albeit a different flavour to PSD2, will arrive in the US in the not too distant future.
Australia has moved one step closer to implementing an open banking regime with the publication of a final Government report into the issue.Open banking in Australia aims to be a game changer leading to better deals on mortgages, personal loans and small businesses loans. Open banking will give consumers more choice of financial services providers, a greater understanding of their financial standing and overall more control over their financial future.
The Hong Kong Monetary Authority (HKMA) publishes its draft Open API framework. Publication of the framework – on 11th January – marked the start of a public consultation.
The aims of the HKMA’s Open API framework include:
The Monetary Authority of Singapore (MAS) is very vocal about encouraging financial institutions to adopt APIs as a key foundation layer for innovation and interoperability.
MAS are known for their progressive, forward thinking approach to the role financial technology can have in their local economies, and so it comes as no surprise, that Singapore is looking at open banking as a way to broaden choice and foster competition in their local market.
The following chart shows open banking readiness across the whole Asian region: