apidays LIVE Hong Kong 2021 - API Ecosystem & Data Interchange August 25 & 26, 2021 Open Banking Development from a Regional Perspective Jonathan Cheung, Director Open Banking & API, Standard Chartered Bank

1. CONFIDENTIAL
Open Banking Development
From a Regional Perspective
Jonathan Cheung
Director, Open Banking & API
Digital Banking

2. CONFIDENTIAL
Agenda
1. Global Landscape
2. Use-cases (Singapore / Taiwan / Hong Kong)
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
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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)
When 2018 2018 2020 2018 2019 2019
Key use-
cases
• Account Aggregation
• Personal Finance
Mgt
• Instant Credit/pre-
approval
• KYC
+300 third party
providers and more than
3 million consumers
using different types of
open banking services.
9 ADR (accredited data
recipients) either in
active/accredited status
(bank / PFM app / credit
agency / CDR platform
providers)
1. Account
aggregation by
SGFinDex with
7 Banks + Gov Data
(HDB loans +
Retirement saving)
1. Account aggregation
by Taiwan Depository &
Clearing Corporation
super app with 7 banks
1. Partnership for
product (card / banking
acct / ploan / mortgage)
acquisition
2. Pay with point
3. Instant onbaording
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

4. CONFIDENTIAL
Agenda
1. Global Landscape
2. Use-cases (Singapore / Taiwan / Hong Kong)
3. What’s next? Challenges & Opportunities

5. CONFIDENTIAL
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https://www.sc.com/sg/bank-with-us/sgfindex/
SGFinDex – Singapore Financial Data Exchange
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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
• 6 banks in TW gone live in Q1 2021 –
sharing customer account balance data into it
• 2.5 million accounts opened so far
• Security 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
Implementation Status of Open API in Hong Kong
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Source: HKMA website
• https://www.hkma.gov.hk/media/eng/doc/key-
functions/ifc/fintech/The_Next_Phase_of_the_Banking_Open_API_Journey.pd
f

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The TSP ecosystem by far in the Hong Kong banking industry
enabled by Open API
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Up to the bank to decide whether to collaborate
with a partner
Case-by-case basis
2. Application
/ Instant
approval for
banking
products
3. Shop/Pay with
points
1. Real-
time lead
capture
Reference: HKSTP Data Studio
https://datastudio-fintech.hkstp.org/tsplist/

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

10. CONFIDENTIAL
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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Use-cases (3)
Instant Pay-out with loyalty rewards:
• Facilitates frictionless pay-out of reward claim through your QR scanning App
• Instant payment directly to an account or to a Proxy address like NRIC, Mobile number

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Use-cases (4)
Real-time Driver Cash-out:
• Driver receives trip payments instantly and make fund transfers from e-wallet balance to any pre-approved
bank account
• Instant verification of beneficiary proxy
Covered by the HKMA Faster Payment Scheme (FPS) –
classified as Open API Phase 4

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• 13 May 2021
• The HKMA published “the Next Phase of the Banking
Open API Journey”
• Blueprints for roadmap of Open API Phase 3 & 4
• https://www.hkma.gov.hk/media/eng/doc/key-
functions/ifc/fintech/The_Next_Phase_of_the_Banking_O
pen_API_Journey.pdf
Implementation Status of Open API in Hong Kong
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14. CONFIDENTIAL
Agenda
1. Global Landscape
2. Use-cases (Singapore / Taiwan / Hong Kong)
3. What’s next? Challenges & Opportunities

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• Rise of “Embedded Finance” with neo-banks partnership with non-
bank verticals: telco/retail/e-commerce, etc…
• Adding “Financial Services” elements inside a client journey
• Does adding banking always smake sense within the user
experience?
• Banking-as-a-Service (BaaS) – White-label banking solution
• 2 partnership by nexus, a BaaS solution offered by SCB
• Standard Chartered and Bukalapak will offer an array of
innovative financial service through Bukalapak’s ecosystem.
• Enable Sociolla to offer financial products, like savings accounts,
loans and credit cards that are powered by nexus, subject to
regulatory approvals.
https://scventures.io/standard-chartered-partners-with-bukalapak-to-launch-digital-banking-solutions/
Challenges & Opportunities
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From an inside-out perspective…
1. In a market driven environment (non-mandatory), cost vs benefits. What’s B-case?
2. First-mover vs Second-mover advantage? Defend or Attack?
3. Tech-stack readiness – bank & partners digital capability
4. Logistics/admin involved in TSP onboarding…. – TME-1 / outsourcing / common baseline, etc
5. How ready is a customer for such kind of “embedded banking” / open banking experience?
(esp required to share their own data)
Challenges & Opportunities
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Challenges & Opportunities
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Source: “the Next Phase of the Banking Open API Journey” by the HKMA, May 2021
The Top 3 Challenges in HK:

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• What are the major real benefits the banks see with the implementation of Open API?
Challenges & Opportunities
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Source: “the Next Phase of the Banking Open API Journey” by the HKMA, May 2021

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

20. CONFIDENTIAL
25/08/2021
Thank you!