22 Apr 2022 By PAYCEC
Although Open Banking is not mandatory, there are a vast number of countries and governments that embrace it and are actively adopting APIs to build partnerships and secure an Open Banking ecosystem.
Here's a summary of some of the countries that have made significant progress in developing their open-banking infrastructure:
Given that the UK's Open Banking initiative promises to be a game-changer in the banking industry. In 2018, the Canadian government established a committee to examine Open Banking in the country. The study of Open Banking in Canada is still ongoing. The Canadian government's top concerns are consumer privacy, security, and the possibility of a data breach.
The Hong Kong Monetary Authority (HKMA), like most countries, has been pushing for the adoption of Open Banking. Through Open Banking, the HKMA hopes to provide open data access, account information, and payment choices. Furthermore, banks and other third-party service providers (TSPs) should have the freedom to build and develop their own APIs.
The HKMA is now working on the third and fourth phases of its Open API framework, with the goal of launching its Open Banking environment in early 2022.
Singapore's government is dedicated to an organic approach to Open Banking. Because it will assist Singapore in becoming a global smart digital financial center. The Singapore Monetary Authority (MAS) encourages financial institutions to use APIs. Banks are following suit and developing APIs to become a part of the Open Banking ecosystem.
South Korea's Open Banking system went live in December of 2022. The Financial Services Commission is in charge of managing and overseeing it (FSC).
Open Banking services are currently available only to saving banks and credit card companies, but the government plans to expand it to include financial investment institutions and other digital financial service providers. Consumers will be able to use a single smartphone application to access all banking services, such as withdrawals and transfers.
The South Korean FSC estimated that around 20 million people will use its Open Banking services in 2020.
pWith the adoption of the Consumer Data Right in July 2020, Australia began its first phase of Open Banking (CDR). Under the CDR system, Australian people can give regulated third parties permission to access their financial data from their service bank and other financial service providers, similar to the UK's OBIE. The Australian Competition and Consumer Commission regulates Open Banking CDR (ACCC[sa5] ). Only six companies in Australia have received approval from the ACCC so far.
It is projected that Australia's Open Banking ecosystem would take a few years longer to reach full functionality than the UK's Open Banking system.
The main reasons for the delay are the complexity of the standards, the cost of accreditation, compliance, and consumer education.
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