The Hong Kong Monetary Authority (HKMA) has published its Open application programming interface (API) framework for the banking sector.

Its formulation is one of the seven initiatives announced by the HKMA last September to prepare Hong Kong for a new era of Smart Banking.

During consultation, the HKMA received 41 responses from banks, FinTech firms, industry associations, consultants, payment card scheme operators, individuals and other interested organisations. All were supportive of the policy direction, although some respondents sought clarification on the framework, particularly on the engagement with third party service providers (TSPs).

The framework takes a risk-based approach to implement various Open API functions, recommending prevailing international technical standards to ensure fast adoption and security. It also lays out detailed expectations for how banks should onboard and maintain relationship with TSPs to ensure consumer protection.

Upon receiving the deployment roadmaps from banks, the HKMA plans to publish a summary of them, and will work closely with industry over the next 12 months on the timetable.

The HKMA will also launch Open API on its website on 23 July, with around 130 sets of information covering all financial data and important information being published.

Norman Chan, chief executive of the HKMA, said he hoped 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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