Open Finances
It will possible for Korean financial technology (fintech) companies to develop services by downloading standardized technical specifications from banks and securities companies during the first half of next year. In addition, a testbed to check whether or not developed financial services really work in computer networks is expected to be commercialized.
The Financial Services Commission (FSC) held its third demonstration day for fintech support centers at the Creative Economy Innovation Center in Pangyo, Gyeonggi Province on July 15, announcing its plan for building an “Open Fintech Financial Platform.”
“We will build an 'Open API' system that provides financial service programs necessary for fintech companies in a standardized form by the end of the first quarter of next year, in partnership with 17 banks, 15 securities companies, the Korea Financial Telecommunications & Clearings Institute [KFTC], Koscom, and the Financial Security Institute,” said Vice Chairman Jeong Chan-woo of the FSC, who attended the event. An application programming interface (API) refers to a program command that helps people make applications more easily.
The open platform is the combination of an open API that offers financial companies' services in a standardized form, and a testbed that for developed financial services in computer networks. KFTC and Koscom will build an API for the banking sector and an API for the financial investment industry, respectively, in the form of a portal. Later, fintech companies will be able to download and utilize the technical specifications for the development of services.
The nation's financial regulator believes that the construction of the open platform will drastically reduce the time and cost necessary to develop fintech services. For example, when the API to check an individual bank balance is made public, it will be possible for fintech firms to create a new household ledger app with a function that enables people to check their bank balance by adding the API to an existing household ledger app. On top of that, 17 banks will be able to use the open platform, since the API is standardized. An FSC official noted, “If the open platform is built as planned, it will be the world's first case.” The official added, “The construction of the open platform will serve as an opportunity for our country to grow from a latecomer to an advanced nation in the fintech field.”