Assignment - Open Banking in Fintech

Fintech 101
#81

Japanese fintech

Here are my findings on Japan:

  • Find out what the regulators in your region are doing within Open Banking. Are they doing something? If so, try to figure out how far have they come and what will or is included in the regulation. Share your findings in the Forum.*

The Financial Services Agency in japan has a fintech support desk that companies can contact for further support to make sure their services and products are within regulatory limits.

https://www.fsa.go.jp/en/news/2018/20180717.html

It is nice to see the government fully supporting the changes in open banking with new technologies.

Take a look at a couple of banks active in your region and what kind of developer portals and help they are offering. Can you use any of this for your fintech ideas? Is the service for free or how much will it cost? Share your findings in the forum.

There are about 64 1st tier regional banks in Japan that are offering banking APIs. That is only the regional ones that exclude foreign and 2nd tier regional banks.

A more substantive breakdown is found in this pdf:
https://www.jetro.go.jp/ext_images/australia/banners/OpenBanking_Factsheet_f.pdf

Research some Fintech API Aggregators in your area and share them in the forum.

Netstars is a payments api aggregator company in Japan. They just got funded not too long ago for their ambitious goal.
https://www.netstars.co.jp/en/246/

From what I can tell, various foreign fintech companies are trying to build subsidiary companies and branches in Japan since Domestic fintech startups are a bit late to the fintech game relatively compared to european counterparts (Revolut is a good example as they are already starting to hire local Japanese staff to expand domestically in Japan)

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#82

  • Administrator Biden introduced Exec order July 9, 2021 for open financing promoting Competition in the American Economy and is based on a very simple but important intuition that having competition is a fundamental ingredient of a healthy capitalist economy. Heā€™s paved the way to open finance by promoting competition in the market, moving open finance into the mainstream of finance conversation.

  • Banks offering card services and lending services, but I wouldnā€™t have a clue about how it would help ā€œmy fintechā€ because I donā€™t have one. All this is very informative as to whatā€™s out there, but none of has really guided me into a fintech, since Iā€™m not in the banking or financial industries. I thought this would give me more practical knowledge into ā€œhow toā€ as compare to "what others are doing."

  • MX, Plaid, Intuit, CashEdge

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#83

Find out what the regulators in your region are doing within Open Banking. Are they doing something? If so, try to figure out how far have they come and what will or is included in the regulation. Share your findings in the Forum.

Take a look at a couple of banks active in your region and what kind of developer portals and help they are offering. Can you use any of this for your fintech ideas? Is the service for free or how much will it cost? Share your findings in the forum.

Research some Fintech API Aggregators in your area and share them in the forum.

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#84

In Poland

  1. there is special task group for implementing regulations supporting with eu law compliance. There is also innovation hub which supports companies that under KNFā€™s regulations.

  2. Open banking is working in several banks: Pekao, Alior, PKO, Millenium, Santander, ING. But there is not much in TTP going on as banks in Poland provide all of these service them self. There is no gap between custumers need and banks offering. U can see 7 banks in Ur 1st bank app. Payments are in favor though and many apps are emerging.

  3. https://www2.deloitte.com/pl/pl/pages/tax/articles/fatca/fatca-zasady-agregacji-sald1.html

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#85
  1. I donā€™t have many/any regulators in my region.
  2. This bank provides an open banking service https://www.sbm.com.sa/open-banking/. It seems like itā€™s in beta but you can request a demo.
  3. https://fintechsaudi.com/directory/.
#86

In the Philippines we have the main Bank that controls and regulates all other banks called the Banko Central https://www.bsp.gov.ph/Regulations/Issuances%20of%20Policy%20Exposure%20Drafts/Open%20Finance%20Circular_Final%20Draft_%20120720.pdf

A bank in the Philippines that does a lot in Blockchain and cryptocurrency is Union Bank.
https://developer.unionbankph.com/product

#87

Since Sweden is in EU, Payment Services Directive 2 (PSD2) seems to be the latest and most important regulation when it comes to open banking. The European Banking Authority keeps writing and updating regulatory technical standards and opinions regarding PSD2.
https://www.fi.se/sv/bank/andra-betaltjanstdirektivet-psd-2/eu-regler-for-psd-2/

The Swedish Financial Supervisory Authority is currently investigating Swedbank to see if they are following PSD2 when it comes to customer authorization and open communication standards.
https://www.fi.se/sv/publicerat/undersokningar/undersokningar-lista/2021/undersokning-om-sarskilda-granssnitt/

Some Swedish banks that have developer portals:

I could only find princing info for Handelsbanken, which is free.

Some aggregators for the above mentioned banks are:

  • Fintecture
  • Nordigen
  • enable:Banking
  • Klarna
  • Enfuce
  • Neonomics
  • Budget Insight
  • Salt Edge

Source: https://www.openbankingtracker.com/country/sweden

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#88

About the cost of a fintech app you can read in this guide - https://www.cleveroad.com/blog/build-app-like-uber-eats

#89
  • Find out what the regulators in your region are doing within Open Banking. Are they doing something? If so, try to figure out how far have they come and what will or is included in the regulation. Share your findings in the Forum.

The OeNB (Austrian National Bank/ Ɩsterreichische Nationalbank) monitors financial stability in Austria in general. In banking supervision, the OeNB is in charge of fact finding: It undertakes on-site inspections, analyzes the information compiled and drafts reports. Moreover, the OeNB is responsible for processing reporting data.

The ECB (European Central Bank) has been responsible for the supervision of banks in the euro area since November 4, 2014. It directly supervises significant banks, whereas less significant banks are supervised by the national competent authorities subject to oversight by the ECB.

The FMA (Financial Market Authority/ Finanzmarktaufsicht) is the designated public authority in Austria for banking supervision and macroprudential supervision, for the supervision of insurance companies and pension funds, as well as for securities regulation. The FMA monitors compliance with the relevant rules and is also the Austrian resolution authority.

The Austrian Ministry of Finance is responsible for drafting government bills and converting EU legal acts into Austrian legislation.

  • Take a look at a couple of banks active in your region and what kind of developer portals and help they are offering. Can you use any of this for your fintech ideas? Is the service for free or how much will it cost? Share your findings in the forum.

I looked a three banks in my area: Erste Bank, Raiffeisen, Bank Austria
All three offer open banking. Erste Bank and Raiffeisen offer developer portals with a sandbox testing environment.

  • Research some Fintech API Aggregators in your area and share them in the forum.

Nordigen, finapi.io, Blockpit

#90

In November 2017, Australia passed a project called the Consumer Data Right (CDR) to allow people to easily move their data between banks and other financial institutions.
The project had a deadline for July 2020, where all the relevant institutions were required to be compliant with the standards set out in the CDR to retain their license.

The CDR was to push for universal standards in open banking. It was to be governed by the ACCC (Australian Competition and Consumer Commission).
The main mission (at least what was advertised), was that it would provide stakeholders (the public) with:

  • Choice,
  • Control, and
  • Convenience

You can search up all institutions involved in CDR, from Data Holders, to Data Recipients.
Since the deadline in 2020, not much has been done in terms of progressing the CDR, however there could be a universal standard for making integrations more simple for the institutions to adopt the rules - similar to an ERC20 standard in Ethereum, or some such set of rules.

The big banks in Australia have relatively straightforward developer portals. As someone who was not aware of these open banking options and APIā€™s from the banks, there are many ideas that can be thought upon now.

Most of the large institutions provide free APIā€™s, however they are limited in scope, seemingly to just appeal the the CDR, and provide nothing more. Perhaps this is because they would rather keep anything above and beyond to themselves, so they can compete better in the open banking landscape.

In Australia, there are a handful of companies capitalizing on the Open Banking movement.
Many of them are big names, such as:

  • 86 400 (Austaliaā€™s leading NeoBank - recently bought by NAB for $220 million - yes thatā€™s big in Aus :yum:)
  • Frollo (An API hub which runs data through Machine Learning an such)
  • Reckon (Yes, that terrible accounting software. The provide some API goodies to help with their services)
  • Frollo
#91

1 Reguation in Poland regarding open banking, mainly rely and refer on PSD2, legislation about payment services from 2011 ( in pl: Ustawa o usługach płatniczych z 19 sierpnia 2011 r.) and RTS which is also directive from UE (27 Nobember 2017)
Regulator says that implemented regulations suppose to increase safety and security of using online banking, directive also brings strong authentication procedure in to the banking system

2 There are few banks in Poland which offer bounded accounts (they let their customers to link accounts from other banks with the one in their bank) in one place which are Alior Bank, ING Bank Slaski, Santander Bank Polska, Bank Millenium, Mbank and pekao). Most of them they offer that service for free. Apart from banks there are few others companies, some example can be fintech company Kontomatik which provide service for banks and institutons, mainly offers service with onboarding client and assess credit score for customers. Another one worth to include here is startup ā€œRampā€ which plans to use open banking solution together with smart contracts on ethereum and BSC which helps to settle FIAT-cryptocurrency transaction without 3rd party or so called Man in the Middle. (Never knew about it before making that assignment :slight_smile: )

Some of API Aggregators in Poland:
apilogic.pro nordigen.com https://polishapi.org/en/

#92
  1. Open banking is not yet available in Canada. This means that there is currently no secure system in Canada to safely share financial data from your bank account with fintechs other than your bank.
    However the initial phase of open banking should be implemented by January 2023. The implementation should be neither exclusively government-led nor industry-led. Instead, Canada should pursue a hybrid, made-in-Canada approach that recognizes the potential for government and industry to collaborate, each with appropriate roles.

A hybrid, made-in-Canada open banking system should have the following core foundational elements:

Common rules for open banking industry participants to ensure consumers are protected and liability rests with the party at fault;
An accreditation framework and process to allow third party service providers to enter an open banking system; and
Technical specifications that allow for safe and efficient data transfer and serve the established policy objectives.
2. Most of the large Canadian Banks have existing APIā€™s

  1. Plaid - Updated on May 29, 2019

Enabling innovation in financial services means doing so everywhere. Today, weā€™re taking a step towards this vision by announcing our first international market: Canada.

This launch extends our full API suite to Canada, including EFT authentication via our Auth endpoint. Weā€™ve added coverage for the largest financial institutions including Royal Bank of Canada, Scotiabank, TD Canada Trust, Bank of Montreal, CIBC, and Tangerine; and support cross-border institutions such as American Express. And of course, Link now has full native support for these institutions on both web and mobile.

For the past few months, weā€™ve been running in beta in Canada with a number of customers, including Drop, Wave, and Wealthsimple. Now, weā€™re excited to open up access to Canadian institutions to everyone, whether youā€™re thinking about building products specific to Canada or expanding across the border.

#93

Most banks in Canada have open banking initiative. Flinks one provider for many.

When you build such solution , you must comply with regulations around classic Personal Identifiable Data Protection, FINTRAC and AML anti money-laundry modules must be part of the backend you design

Openbanking is about talking to your bank via an API rather than using the banking app

#94
#95

In the US ā€œOpen Bankingā€ is industry-driven, not regulation-driven. Mostly because our regulators in any given industry are revolving-door with executives of the major companies in that industry. American citizens are remarkably poorly represented by any of our regulators.
Nevertheless the American FinTech industry here is scrambling for EU compatibility because of how global the US economy is. Weā€™re being EU-regulated by proxy. And weā€™re going to arrive fashionably late to the party. Not absentā€“just late.

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#96

The regulators in the UAE fully support open banking and do provide a sandbox for new fintechs to collaborate with.

An online service called Al Ain finance is offering payment and lending through its portal. I would create a metaverse Fintech bank whereby all your financial life can be placed and accessed. Moreover, through this portal service providers, investors and consultancies can offer their Services to my clients on my metaverese of finance all in one portal in real time global.

#97
  • Find out what the regulators in your region are doing within Open Banking. Are they doing something? If so, try to figure out how far have they come and what will or is included in the regulation. Share your findings in the Forum.

In the UK there is an Open Banking Standard that is open to all account providers (ASPSPs) and has been implemented across 90% of the UK payments account market. It is designed to enable a well-functioning, successful ecosystem, where there are no barriers to the provision of products and services by TPPs.

Covering:
API Specifications
Security Profiles
Customer Experience Guildlines
Operational Guidelines
Reference Library

https://standards.openbanking.org.uk/

  • Take a look at a couple of banks active in your region and what kind of developer portals and help they are offering. Can you use any of this for your fintech ideas? Is the service for free or how much will it cost? Share your findings in the forum.

UK operating banks that offer Open Banking:
Advanced Payment Solutions Limited
Allied Irish Bank
Arbuthnot Latham & Co Limited
Bank Of Baroda (UK) Limited
Bank of Ireland UK
Bank of Scotland
Barclays
BFC Bank
C Hoare & Co
Citibank UK Limited
ClearBank Limited
Clydesdale Bank
Contis
Coutts & Company
Coventry Building Society
Creation Financial Services
*Currency Solutions Limited *
*Cynergy Bank *
Danske
FBN Bank (UK) Ltd
Foreign Currency Direct Plc
Ghana International Bank
Halifax
Hargreaves Lansdown Savings
HSBC
ICBC (London)
Industrial and Commercial Bank of China
Investec
Jordan International Bank Plc
Lloyds Bank
M&S
MBNA
Metro Bank
Mizuho Bank
Monese LTD
Nationwide
NatWest
NewDay
Northern Bank Limited
OKEO LIMITED
Permanent TSB
*Prepay Technologies *
Project Imagine
Reliance Bank Ltd
Revolut
Royal Bank of Scotland International Limited, Luxembourg Branch
Sainsburyā€™s Bank
Santander
*SG Kleinwort Hambros Bank *
*Spectrum Payment Services Limited *
Starling Bank
Tesco Bank
The Access Bank UK Limited
The Bank of New York Mellon
The Co-operative Bank
The Governor and Company of the Bank of Ireland
The Royal Bank of Scotland
The Royal Bank of Scotland International
Tide Platform
TSB Bank
Turkiye Is Bankasi As
Ulster Bank
Ulster Bank Ireland DAC
Union Bank of India
Vanquis Bank
Virgin Money
Wells Fargo Bank, National Association
Wirepayer
Wirex Limited
Yorkshire Building Society

Development help and details:
https://developer.barclays.com/
https://developer.nationwide.co.uk/
https://developer.coventrybuildingsociety.co.uk/
https://developer.hsbc.com/
https://develop.hsbc.com/knowledge-article/get-started-open-banking-apis

  • Research some Fintech API Aggregators in your area and share them in the forum.

https://www.altfi.com/article/6692_here-are-the-uks-top-5-open-banking-providers

https://www.computerworld.com/article/3412242/how-uk-fintech-startups-are-preparing-for-open-banking.html

https://tink.com/

#98

  1. Find out what the regulators in your region are doing within Open Banking. Are they doing something? If so, try to figure out how far have they come and what will or is included in the regulation. Share your findings in the Forum.
    Puerto Rico uses the same banking as the United Statesā€¦ I found the following information about Opena Banking for the EEUU.
    In July 2021, President Biden signed the Executive Order on Promoting Competition in the American Economy. The Executive Order takes a ā€œwhole of government approachā€ to enforcing antitrust laws across the economy, with clear implications for data protection and privacy. Notably, the order encourages the Consumer Financial Protection Bureau (CFPB) to consider crafting rules under section 1033 of the Dodd-Frank Act in support of open banking with the goal of making it easier for consumers to safely switch financial institutions and use novel and innovative financial products while maintaining privacy and security.
    https://fpf.org/blog/the-future-is-open-the-u-s-turns-to-open-banking/

  2. Take a look at a couple of banks active in your region and what kind of developer portals and help they are offering. Can you use any of this for your fintech ideas? Is the service for free or how much will it cost? Share your findings in the forum.
    Found a great website for open banking tracking: https://www.openbankingtracker.com/country/united-states
    Capital One has APIā€™s for: Customer Transaction and Money Movement
    Citi Bank has APIā€™s for: Accounts, Authorize, Customers, Money Management, Utilities, Onboarding and Pay with Points

  3. Research some Fintech API Aggregators in your area and share them in the forum.
    TrueLayer
    Salt Edge
    MoneyHub Enterprise
    Plaid
    Fidel
    Budget Insight
    Bridge
    Klarna

#99

A)
In South America Brasil, Mexico and Chile, have regulated the Open Banking. Thereā€™s an enormous opportunity with Open Banking in Argentina.

B)
Main banks in Argentina:
Banco Santander Rio
Banco Galicia
BBVA Banco FrancƩs

C)
One of the most well-known API Aggregators in Argentina is Flexibility (https://www.flexibility.com.ar/)

#100

Iā€™m new to this space and Iā€™m from the Philippines
Hereā€™s what I found regarding OB regulations in my area:

Philippines Central Bank - Final Draft
and an article regarding the 3-Year Strategy for Open Finance in the Philippines

Hope youā€™ll find this data useful for those building projects and/or expanding to 3rd world countries like the Philippines :philippines:

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