The Hong Kong Monetary Authority (HKMA) has published its Open Application Programming Interface (API) Framework for the Hong Kong banking sector. The HKMA has also announced the launch of Open API on its official website on 23 July 2018 for public access. The formulation of the Open API Framework was one of the seven key initiatives announced by the HKMA in September 2017 that it said will prepare Hong Kong to move into a new era of smart banking. The regulator said that Open API can help to ensure the competitiveness of the banking sector, encourage more parties to provide innovative and integrated services that improve customer experience, and keep up with worldwide development on the delivery of banking services. During the its consultation with banks and other interested organisation, the HKMA received 41 responses. All respondents were supportive of the HKMA’s policy direction in developing an Open API Framework, it said. However, some respondents sought clarification or requested more details on the Framework particularly on the engagement with third party service providers (TSPs). The Framework takes a risk-based principle and a four-phase approach to implement various Open API functions, and recommends prevailing international technical standards to ensure fast adoption and security. It also lays out detailed expectations on how banks should on board and maintain relationship with (TSPs) in a manner that ensures consumer protection. The HKMA said it now expects banks to deploy Phase I Open APIs within six months and Phase II Open APIs within 12 to 15 months. Upon receiving the deployment roadmaps from banks, the HKMA plans to publish a summary of road maps of the Open API functions from the banks for reference by the market. The HKMA will work closely with the industry in the next 12 months on the deployment timeline for Phase III and IV Open APIs, taking into account implementation progress of Phase I and II, and international development. The HKMA will be launching Open API to the general public on its official website on 23 July 2018. Around 130 sets of information covering all financial data and important information published on the HKMA’s website will be made available for Open API by phases. On the day of launch, 50 sets of financial data and important information will be opened via API. These cover the information most frequently accessed by the public, 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. The remaining 80 sets of information will be opened via API by phases for completion by mid-2019. “Open API is one small step for a bank, but a milestone for financial innovation in the banking sector, said Norman Chan, Chief Executive of the HKMA. ” 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. “The HKMA is leading by example through making available a range of financial data and important information on the HKMA’s website in Open API format, in order to facilitate flexible retrieval and application of such information by stakeholders and the general public.”
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