The State Bank of Vietnam (SBV) recently released a draft circular titled THÔNG TƯ - Quy định về triển khai giao diện lập trình ứng dụng mở trong ngành Ngân hàng, which spells out new regulatory requirements on the implementation of Open Application Programming Interfaces (APIs) in the financial services industry. Aimed at standardizing open API deployment with strict data security and integrity guidelines, the circular covers areas including information security standards, bank responsibilities, and a minimum set of Open API functions.
“Banks operating in Vietnam need to take advantage of this opportunity to prepare their API infrastructure and processes for open banking. Open APIs give banks a new acquisition channel that can be monetized through third party partner platforms. The financial institutions that are the first to meet the new compliance standards will have a massive advantage in customer acquisition and new product adoption via SBV’s upcoming open banking initiatives.” said Todd Schweitzer, CEO and Co-founder of Brankas, an open finance technology company based in APAC and MENA. Brankas' large network coverage of financial institutions in Southeast Asia includes payment and data APIs that are connected to more than 80% of the major banks and fintech in Indonesia and the Philippines.
As the SBV prepares for nation-wide open finance programs, it is critical that the financial institutions that facilitate financial data and money movement maintain a high level of data security. The SBV is presently seeking feedback on the Open API requirements in the draft circular and will also be looking at successful implementations overseas in order to set a clear roadmap suitable for Vietnam.
The scope of the draft circular covers the creation of Open API documentation, secure data sharing with third parties, API testing environments, and data standards for items such as data exchange, encryption, and authentication.
The SBV recommends that banks and financial institutions prepare their Open API systems in accordance with the timeline stated in the draft circular.
To find out more about open API monetization opportunities, read Brankas’ recent report titled Banking-as-a-Service: Rearchitecting Financial Services Landscape. The report reveals how a bank’s revenue streams can be diversified through API fees, service charges, and co-branded product offerings with third party partners.
About Brankas
Brankas is a leading global open finance technology provider. We provide API-based solutions, data and payments solutions for financial service providers (like banks, lenders and e-wallets) and online businesses. Brankas partners with banks to build and manage their open finance compliance solution, producing APIs for real-time payments, identity and data, new account opening, remittances, and more. With Brankas' secure open banking technology, online businesses, fintech companies and digital banks can use Brankas APIs to create new digital experiences for their users.
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