RL - Insurance

Chapter: Appendix 14 APPENDIX Table 3 provides an overview of open banking regulatory initiatives in various regions and countries. Table 3: Open Banking Initiatives by Country/Region REGION INITIATIVE DESCRIPTION EUROPEAN UNION PSD2 The Access to Account (XS2A) provisions of PDS2 give any third party access to account-level information held by a bank and the ability to initiate a payment from that bank account. The European Commission believes that XS2A will create choice and competition for consumers by allowing them to choose services not controlled by the account-owning institution. UNITED KINGDOM Open Banking The UK Competition and Markets Authority (CMA) authorized the Open Banking Implementation Entity (OBIE) to manage the rollout of bank and building society open APIs to drive competition and innovation in UK retail banking. The Open Banking rollout began in January 2018, with regulated third parties able to start integrating with Open Banking and testing their products. INDIA Unified Payments Interface (UPI) As part of its "Less cash" India initiative, the Reserve Bank of India authorized the National Payments Corporation of India, a bank- owned cooperative, to develop an instant real-time payment system to facilitate interbank transactions. The resulting Unified Payments Interface (UPI) is processing an average of 877 million transactions a month, with an average monthly value of ₹9.5 trillion (US$135 billion). SOUTH KOREA Fintech Open Platform In 2016 the South Korean Financial Services Commission (FSC) launched the Fintech Open Platform, claiming that it is the world's first fintech development and sandbox platform. The platform's open APIs span 16 commercial banks and 25 securities companies in a unified format. The platform is managed by the Korea Financial Telecommunications and Clearing Institution along with Koscom Corporation. SINGAPORE Finance-as-a- Service: API Playbook Issued Finance-as-a-Service: API Playbook in November 2016. The Playbook addresses guidelines and best practices for API design and usage; API candidates covering banks, insurers, asset management companies, and government agencies; technical standards; and API governance framework. JAPAN 2017 Growth Strategy and Amendments to the Banking Act Japan adopted its 2017 Growth Strategy in mid-2017. One of its priority areas is to promote open innovation between financial institutions and fintech firms. Japan amended its Banking Act to define Payment Initiation Services Providers (PISP) and Account Information Service Providers (AISP). As part of the amendments, 80 banks must introduce Open APIs by June 2020. HONG KONG New Era in Smart Banking Issued a consultation paper in January 2018 seeking feedback on the proposed Open API framework. The framework includes categories of Open APIs, technical standards, third party service provider certification model, and measures to encourage Open API ecosystem development. AUSTRALIA Consumer Data Right: Open Banking Review The Australian government published a final report on open banking in February 2018, seeking responses to its findings by March 2018. The report recommends a commencement date for Open Banking of 12 months after approval.

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