Technical Note on Open Banking : Comparative Study on Regulatory Approaches
Open banking has emerged strongly in the past few years as a system to give customers the right to share with parties they trust the information that banks have about them in a secure manner and also as a way to open up processes and services in ba...
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| Language: | English |
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Washington, DC
2022
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| Online Access: | http://documents.worldbank.org/curated/en/099345005252239519/P16477008e2c670fe0835a0e8692b499c2a http://hdl.handle.net/10986/37483 |
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okr-10986-374832022-05-28T05:10:33Z Technical Note on Open Banking : Comparative Study on Regulatory Approaches World Bank FINANCIAL INCLUSION GLOBAL INITIATIVE (FIGI) OPEN BANKING DATA PRIVACY BANKING APPLICATIONS BANK API DEVELOPMENT OPEN BANKING LEGAL FRAMEWORK API INFRASTRUCTURE API SECURITY FINTECH LAW OPEN BANKING REGULATION Open banking has emerged strongly in the past few years as a system to give customers the right to share with parties they trust the information that banks have about them in a secure manner and also as a way to open up processes and services in banking. The main objectives pursued by regulatory frameworks that define open banking are generally encouraging innovation and fostering competition, resulting in new products and services at competitive prices to the benefit of consumers. With that in mind, and with the United Kingdom as a first mover, different regulatory approaches have been developed. Some of them are regulatory driven, while in other cases, with a hands-off approach, they have been led by industry. In between, we also find collaborative models in which both the public sector and private-party players are instrumental to the definition and adoption of open banking. Regulatory approaches also differ in the scope of data that is to be shared, the definition of the financial institutions that have to publish their application programming inter-faces and share data, the mandatory or voluntary nature of the framework, the definition of the type of license that third-party providers need to operate, and the definition or not of concrete standards, among other things. While there is no single right approach, there are common challenges that countries considering regulation certainly need to bear in mind in terms of the definition and interoperability of technical standards, security, governance, and consent and authentication mechanisms. Although open-banking regulatory frameworks have been operating for less than two years at most, early lessons can be drawn from the first movers and the debates that are taking place between regulators and market participants. 2022-05-27T22:20:52Z 2022-05-27T22:20:52Z 2022 Brief http://documents.worldbank.org/curated/en/099345005252239519/P16477008e2c670fe0835a0e8692b499c2a http://hdl.handle.net/10986/37483 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC Publications & Research Economic & Sector Work :: Policy Note |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
FINANCIAL INCLUSION GLOBAL INITIATIVE (FIGI) OPEN BANKING DATA PRIVACY BANKING APPLICATIONS BANK API DEVELOPMENT OPEN BANKING LEGAL FRAMEWORK API INFRASTRUCTURE API SECURITY FINTECH LAW OPEN BANKING REGULATION |
| spellingShingle |
FINANCIAL INCLUSION GLOBAL INITIATIVE (FIGI) OPEN BANKING DATA PRIVACY BANKING APPLICATIONS BANK API DEVELOPMENT OPEN BANKING LEGAL FRAMEWORK API INFRASTRUCTURE API SECURITY FINTECH LAW OPEN BANKING REGULATION World Bank Technical Note on Open Banking : Comparative Study on Regulatory Approaches |
| description |
Open banking has emerged strongly in
the past few years as a system to give customers the right
to share with parties they trust the information that banks
have about them in a secure manner and also as a way to open
up processes and services in banking. The main objectives
pursued by regulatory frameworks that define open banking
are generally encouraging innovation and fostering
competition, resulting in new products and services at
competitive prices to the benefit of consumers. With that in
mind, and with the United Kingdom as a first mover,
different regulatory approaches have been developed. Some of
them are regulatory driven, while in other cases, with a
hands-off approach, they have been led by industry. In
between, we also find collaborative models in which both the
public sector and private-party players are instrumental to
the definition and adoption of open banking. Regulatory
approaches also differ in the scope of data that is to be
shared, the definition of the financial institutions that
have to publish their application programming inter-faces
and share data, the mandatory or voluntary nature of the
framework, the definition of the type of license that
third-party providers need to operate, and the definition or
not of concrete standards, among other things. While there
is no single right approach, there are common challenges
that countries considering regulation certainly need to bear
in mind in terms of the definition and interoperability of
technical standards, security, governance, and consent and
authentication mechanisms. Although open-banking regulatory
frameworks have been operating for less than two years at
most, early lessons can be drawn from the first movers and
the debates that are taking place between regulators and
market participants. |
| format |
Brief |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Technical Note on Open Banking : Comparative Study on Regulatory Approaches |
| title_short |
Technical Note on Open Banking : Comparative Study on Regulatory Approaches |
| title_full |
Technical Note on Open Banking : Comparative Study on Regulatory Approaches |
| title_fullStr |
Technical Note on Open Banking : Comparative Study on Regulatory Approaches |
| title_full_unstemmed |
Technical Note on Open Banking : Comparative Study on Regulatory Approaches |
| title_sort |
technical note on open banking : comparative study on regulatory approaches |
| publisher |
Washington, DC |
| publishDate |
2022 |
| url |
http://documents.worldbank.org/curated/en/099345005252239519/P16477008e2c670fe0835a0e8692b499c2a http://hdl.handle.net/10986/37483 |
| _version_ |
1764487294960533504 |