Finkit for open banking9/1/2023 ![]() To accelerate the growth of the fintech sector, the regulator said it will strengthen its support to startups, notably on the financing front. ![]() CreDB is a personal and business credit information system that’s been providing financial data to financial companies, enterprises and academic since June 2019. The FSC also said it will test run a “digital sandbox program” using CreDB managed by the Korea Financial Information Services. This will allow for smoother and more convenient digital onboarding experiences for customers. Other fintech priorities for 2021īesides outlining its open banking ambitions, the FSC also identified other fintech initiatives it will be focusing on in 2021.Īmong other things, the regulator said it will establish “clear standards” on the use of mobile-based contactless authentication and identity verification system in financial services, including fingerprint scanning and facial recognition technologies. This means that nearly 72% of the 28.21 million economically active adults in South Korea utilized open banking. Over 20 million bank customers had joined the open banking service and created nearly 40 million bank accounts, as of June 2020. The system has also gained much popularity among end-users. ![]() Throughout 2020, the FSC continued expanding the system to other participants, including selected mutual finance businesses, securities firms, as well as the Korea Post in December.Īs of July 2020, there were a total of 72 service providers part of the open banking system. 16 more local banks and 31 fintech companies joined in December 2019 as part of the gradual roll out. Previously, 10 commercial banks, including KB Kookmin Bank, Shinhan Bank, Woori Bank and KEB Hana Bank, joined a preliminary service that began on October 30, 2019. We’ve had the advantage of seeing initial efforts play out in the marketplace and have applied the insights gained to our technology to help organizations become compliant, stay compliant and maximize the opportunities ahead.The FSC’s Announced Open Banking System, Source: Korea Fair Trade Commission (KFTC) “This transformation will extend well beyond the current race to comply. “The costliest mistake financial institutions can make in the move to open banking is to focus only on the immediate fix,” said Lee Cameron, senior vice president, FinKit, Digital Banking, Fiserv. Financial institutions also have the option to utilize FinKit for Open Banking to authenticate TPPs and gain required consumer consent for information sharing. The solution includes access to pre-built PSD2 and Open Banking APIs and facilitates ongoing compliance through API version control, release management and distribution, the company said.įiserv added that the white label developer portal enables financial institutions to engage TPPs. “Sound strategic choices taken while these regulations are in their infancy will allow institutions to manage their resources to ensure compliance today, and to focus on innovation and competitiveness long-term.”Īccording to Fiserv, FinKit for Open Banking is a complete, fully managed service to run, monitor and support the application programming interfaces (APIs) needed to share information with trusted third-party providers (TPPs), while also facilitating business services and enabling developers. “Though PSD2 and Open Banking are chiefly viewed as regulatory requirements, they represent a significant opportunity for banks to partner with trusted third-party providers to integrate financial services into their customers’ everyday lives, while also driving more innovation inside the banks,” said Ken Paterson, vice president, Special Projects, Mercator. “As a result of these regulations consumers will be able to access financial information and initiate certain transactions previously only available through financial institutions through other parties they trust and interact with regularly.”įiserv said FinKit for Open Banking is designed to enable immediate and long-term compliance with these regulations and put in place the capabilities required for banks to maximize the opportunity of open banking. ![]() “The move toward open banking, driven by the European Union’s Second Payment Services Directive (PSD2) and the United Kingdom’s Open Banking Implementation Entity (OBIE), will transform financial services,” said Fiserv. BROOKFIELD, Wis.–Fiserv announced it has launched FinKit for Open Banking to help financial institutions meet and keep pace with rapidly unfolding regulations.
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