The Hong Kong Monetary Authority (HKMA), Hong Kong’s government authority tasked with maintaining monetary and banking stability, has published an Open API Framework for the Hong Kong banking sector. Further, the HKMA announced that it would launch an Open API on July 23, 2018.
The Open API was one of seven Smart Banking initiatives announced by HKMA in 2017. The goal of the initiatives is to enhance competitiveness and encourage innovative, integrated services within the Hong Kong banking industry. The HKMA saw worldwide banking moving towards API driven customer experiences, and was prompted to keep up with the pace.
The API Framework includes a four phase approach to implement various API functions. Phase one is production information. Phase two is customer acquisition. Phase three is account information. Phase four is transactions. The Framework also includes an emphasis on security and the prompt adoption of international technical standards.
The HKMA expects banks to deploy phase one within six months, and phase two within twelve to fifteen months. The HKMA will work with industry players to create roadmaps for phases three and four over the next year. Norman Chan, HKMA Chief Executive, commented in a press release: “Open API is one small step for a bank, but a milestone for financial innovation in the banking sector.”