The Hong Kong Monetary Authority (HKMA)’s Open Application Programming Interface Framework for the Banking Sector (Open API Framework), was issued on July 18, 2018, with the aim of encouraging the development of innovative technology solutions and the amalgamation of information by third party service providers (TSPs) for the benefit of consumers. Open API Framework can help to ensure the competitiveness of the banking sector in Hong Kong, and keep up with worldwide development on the delivery of banking services. The formulation of the Open API framework is one of the seven initiatives announced by the HKMA in September 2017 to prepare Hong Kong to move into a New Era of Smart Banking.
Mayer Brown's Gabriela Kennedy and Karen H.F. Lee describe each of the four phases of the Open API Framework implementation timeline and explain that the level of perceived risk increases with each phase, as does the level of protection required by the banks for the Open API implementation. Gabriela and Karen also discuss TSPs governance and explain that it is each bank’s responsibility to vet each TSP to ensure robust measures and contracts are in place to protect any misuse of data by TSPs.
Read the full report here.
Gabriela is a member of the editorial board of Computer Law & Security Review and edits the Asia Pacific column, a country-by-country analysis of the latest legal developments, cases and issues relating to IT, media and telecommunications in the Asia Pacific region.