The Revival of the Banks — How open banking is heralding change for traditional banks

  • The European Parliament ratified the second guideline of payment services (PSD2) in 2016, making it the first open banking regulation. The regulation requires banks to make their data available to third parties in order to ease entry for new players and promote healthy competition among others. Read more about the regulation here.
  • The HongKong Monetary Authority (HKMA) is currently in mid-implementation of a four-phased approach aimed at encouraging the adoption of open banking in the country. The phase 1 of the approach mandated that banks put up their product information where the general public can access it. Phase 2 of the approach set an October 2019 deadline for banks to allow fintech companies onboard customers using the bank’s data upon customer’s request. Read more about how the HKMA is encouraging open banking in Hong Kong here.
  • The Central Bank of Brazil published Announcement №33,455 in April 2019. The announcement established the framework for the implementation of open banking in the country and is aiming to increase the efficiency of the credits and payments markets in Brazil, improve security for all the parties involved and also promote a competitive business environment in the financial industry.
  • Australia is set to make a big push on its open banking standards in February 2020 that will change how its major banks (Westpac, Commonwealth Bank, Australia and New Zealand Banking Group (ANZ), and National Australia Bank (NAB)) and accredited parties are expected to share customers’ data. The body overseeing Australia’s financial services industry, Australian Prudential Regulatory Authority (APRA), is also aiming to reduce regulatory barriers to ease entry for newer and more innovative parties into the financial industry of the country.
  • In Nigeria, the Open Technology Foundation (OTF) is driving the development and adoption of Open Banking standards. The aim of the foundation is to ensure that account holders in the country can ‘seamlessly and securely link their bank account information with their platform or apps of choice.’ According to the official website, through the Open Banking API, a fintech company can quickly create secure and personalized products and apps for its customers. Read more about the body here.

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