apidays Hong Kong 2022 - API-First Digital Transformation & Platform Economy August 24 & 25, 2022 Open Banking Ecosystem – Development, Opportunities & Challenges Jonathan Cheung, Director, Open Banking & API, Digital Banking at Standard Chartered Bank (Hong Kong) Limited ------------ Check out our conferences at https://www.apidays.global/ Do you want to sponsor or talk at one of our conferences? https://apidays.typeform.com/to/ILJeAaV8 Learn more on APIscene, the global media made by the community for the community: https://www.apiscene.io Explore the API ecosystem with the API Landscape: https://apilandscape.apiscene.io/ Deep dive into the API industry with our reports: https://www.apidays.global/industry-reports/ Subscribe to our global newsletter: https://apidays.typeform.com/to/i1MPEW

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Open Banking Ecosystem
Development, Opportunities & Challenges
Jonathan Cheung
Director, Open Banking & API
Consumer, Private & Business Banking

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Agenda
1. Global Landscape
2. Use-cases
3. What’s next? Challenges & Opportunities
Open Banking allows trusted third-party partners to access customer’s financial data
held by banks through a secure and standardized way of interfacing - API

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Global Landscape on Open Banking
Key Markets EU UK Australia Singapore Taiwan Hong Kong
Approach Legislative -
Banks are mandatory to
share customer data to
partner who fulfilled
onboarding requirement
Legislative –
Banks are mandatory to
share customer data to
partner who fulfilled
onboarding requirement
Legislative -
Banks are mandatory to
share customer data to
partner who fulfilled
onboarding requirement
Organic –
Selected banks
encouraged to connect
with SGFinDex
Organic –
Bank freely to enter
bilateral agreement with
partner (upon meeting
onboarding requirement)
Organic -
Bank freely to enter
bilateral agreement with
partner (upon meeting
onboarding requirement)
Key
initiatives
Payment Services
Directives 2 (PSD2)
Payment Services
Directives 2 (PSD2) &
OBIE
The Consumer Data Rights
(CDR)
1. SGFinDex
2. API Exchange
3-phase approach:
P1: Public info (2019)
P2: Share customer data
(2021)
P3: Perform transaction
(TBC)
4-phase approach:
P1: Public info (2019)
P2: Product application
(2020)
P3: Share customer data
(2022)
P4: Perform transaction
(2022)
Source: Google
Once a partner fulfills onboarding
requirement, banks must share customer data
Mandatory basis
Up to the bank to decide whether to
collaborate with a partner
Case-by-case basis

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Data Aggregation – Norm in UK/EU
• Provide aggregated account views /
saving goal features / PFM tools as
core part of banking app features
• Customers can request to switch
accounts to another bank and have
all their direct debits or regular
payment settings converted to
another bank
• Trying to address the challenge of
“People move houses more often
than they switch banks”
8/24/2022
Source: Google / public websites of Lloyds Bank & Monzo

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https://www.sc.com/sg/bank-with-us/sgfindex/
SGFinDex – Singapore Financial Data Exchange
Content Details
Data you can get
from SGFinDex
Government data:
1. Latest CPF account balances
2. past year’s tax bill
3. Outstanding HDB loan
balances and monthly instalments
Bank Data:
1. Savings account balances,
2. credit card statements,
3. loans,
4. fixed deposits etc.
7 Participating Banks
Citibank, DBS, HSBC, OCBC,
Maybank, SCB, UOB

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• Taiwan Depository & Clearing Corporation
(TDCC) – government owned platform
• 2.5 million accounts opened so far
• accounts aggregation across various banks
& security firms
• Open Banking adding Deposit Account
Aggregation as new features
Taiwan - TDCC (ePassbook)

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• HKMA taking the 4-phase approach; phase 1 & 2 already started in 2019
• On 13 May 2021, The HKMA published “the Next Phase of the Banking Open API Journey”
• Blueprints for roadmap of Open API Phase 3 & 4
Open API in Hong Kong
Source: HKMA website
• https://www.hkma.gov.hk/media/eng/doc/key-
functions/ifc/fintech/The_Next_Phase_of_the_Banking_Open_API_Journey.pdf

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Phase III Open API functions for retail & corporate / SME
customers
•Upon getting customer consent (in a standardized journey)
Retrieval of deposit account information
•Account availability
•Account status
•Account balance
•Transaction details
What’s the next (big) thing for HK?
https://www.hkma.gov.hk/eng/key-functions/international-financial-centre/fintech/open-
application-programming-interface-api-for-the-banking-sector/phase-approach/

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Use-cases (1)
Real-time Lead Capture for Retail Banking Products Requires Involvement of RM

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Use-cases (2)
Enhance Retail Customer Onboarding (usually) powered by instant approval
for simple products such as card / personal loan / banking accounts

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• Rise of “Embedded Finance” / “Open Finance” in partnership with
non-bank verticals: telco/retail/e-commerce, etc…
• Banking-as-a-Service (BaaS) – White-label banking solution
• 2 partnership by nexus, a BaaS solution offered by SCB
• Standard Chartered Indonesia and Bukalapak will offer an array
of innovative financial service through Bukalapak’s ecosystem.
https://scventures.io/standard-chartered-partners-with-bukalapak-to-launch-digital-banking-solutions/
Use-cases (3)

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To get to know more about SCB APIs capabilities
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• Visit: https://aXess.sc.com

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24/08/2022
Thank you!