Open Bank System Open Banking Platform
Open banking platforms are digital platforms that provide access to the bank's assets and functions through the formation of internal and external ecosystems through API's and microservices (implementation of the OpenBanking concept through modern technologies)
Content |
Effects
- Improve IT cost efficiency
- Time-to-Market acronym
- Business Expansion Opportunities by Building a Business Partner Ecosystem
- Adaptability of innovation in the IT landscape
- Personalize the offer and increase customer loyalty
Principles of construction
- Business application flexibility and core stability
- Customer Centricity
- Fast connectivity of new services
- High-speed computing
- Horizontal Scalability
- High reliability
Chronicle
2024
The Central Bank of the Russian Federation has issued safety standards for open APIs
The Bank of Russia approved new security standards for open program interfaces (APIs) developed by experts of the FinTech Association and InfoTeCS JSC with an orientation towards domestic cryptography. This became known in mid-December 2024.
The standards will come into force on January 1, 2025. The new versions retain continuity with previous editions, but have been finalized in terms of cryptographic information protection.
Alexander Tovstolip, head of the information security department of the FinTech Association, said that the standards of the first version were focused on the use of foreign cryptography, and the new ones were evolutionarily modified taking into account the adopted methodological recommendations and use domestic sovereign cryptography for protection.
The documents received the designations STO BR FAPI.SYeK-1.6-2024 and STO BR FAPI.PAOK-1.0-2024. They describe the security requirements for financial services based on the OpenID Connect protocol and authentication procedures over a separate channel.
The phased implementation of the mandatory use of open APIs will begin in 2026. The standards will be advisory in nature unless required by Bank of Russia regulations.
According to the consulting company "Yakov & Partners" for 2023, open APIs carry the risks of disclosing personal data of customers and fraud by service providers. However, the developers from BSS argue that if the requirements of the new standards are met, additional threats do not arise.
Kirill Kuzmin, Deputy General Director of the FinTech Association, notes that the new editions guarantee maximum protection and resistance to current cyber threats, making information security part of the solution architecture.
It is planned to create a special operator of the open API environment, which will control the compliance of the interaction of participants with information security requirements.
The Central Bank of the Russian Federation told how banks in Russia will develop open APIs
The Central Bank of Russia (CBR) in early September 2024 announced plans to introduce open APIs in key sectors of the country's financial market. According to information provided by the regulator, the use of open APIs will become mandatory for the largest banks, brokers and insurance companies from 2026. Microfinance organizations, depositories, digital financial asset operators and financial platforms will be required to follow these requirements from 2027.
The Central Bank plans to develop and implement open API standards in those areas where their application will bring the greatest advantages for customers and financial organizations. Already in 2024 and 2025, the development of draft standards will begin, which will cover such data as information on accounts and cards of individuals and legal entities, mortgage lending and insurance contracts, as well as investment products and medical services of clients.
Open APIs (APIs) are a technology that enables communication between companies' information systems through standard communication protocols. The introduction of these standards is aimed at creating a more transparent and user-friendly financial ecosystem. In addition, in 2024, the Central Bank of the Russian Federation intends to launch a pilot project of a commercial consent platform - a single window for managing consents within the framework of information exchange through open APIs.
The concept of introducing open APIs was first presented by the Central Bank in the fall of 2022. According to the regulator, by September 2024, about 70 countries had implemented or are at the stage of adopting regulation for the use of open APIs in the banking sector. More than 40 countries are considering using this technology in other sectors of the financial market. It is expected that by the end of 2024 the number of users of services based on open APIs in the world will exceed 130 million, which is five times more than in 2020.[1]
Russian banks will combine data on customer accounts in their applications
In early June 2024, it became known that Russian banks intend to combine customer account data in their applications. We are talking about the creation of a system that will give users the ability to manage finances in various banks according to the "single window" principle.
According to RBC, the project is being implemented as part of the introduction of open program interface (API) technology. Financial institutions intend to exchange information about customer accounts. Thus, the relevant information will be displayed in the mobile applications of partners. This is expected to improve user convenience: to view information about funds in different banks and manage them, you do not have to switch between different applications.
As of the beginning of June 2024, VTB intends to establish data exchange in cooperation with Alfa Bank and Sberbank in partnership with Tinkoff. In addition, Gazprombank has the appropriate plans. As the initiative develops, clients of financial institutions will be able to manage their money and products open in different banks and insurance companies in one window. At the same time, more profitable offers will be available. In addition, users will be able to save time on requesting and transferring certificates and statements about the status of their accounts and contracts from one financial institution to another.
In the case of the Sberbank and Tinkoff project, the parties intend to obtain the consent of customers to transfer data. After that, account information will begin to be displayed in the applications of two banks. In the future, it is planned to implement the functions of analyzing receipts and expenses on cards and on all customer finances. In turn, Damir Battulin, Senior Vice President of Alfa-Bank, notes that the new approach will help significantly improve the digital customer experience for retail and corporate clients, as well as lead to the emergence of additional services.[2]
2023: How open banking APIs are developing in Russia
At the end of December 2023, the Fintech Association and the B1 company published a study on the development of open APIs in the Russian banking system.
According to experts, barriers to the widespread introduction of open APIs in the Russian Federation are problems in the formation of optimal charging, the degree of responsibility for data leakage and issues of violation of API agreements.
Experts called the creation of convenient services for users a key incentive for the introduction of open APIs. Taking into account the fact that in the Russian Federation the main sources of fintech initiatives are large banks, Open APIs will stimulate the emergence of even more products for customers, analysts say. The implementation of the API ensures the implementation of the principle of "humanocentric" and at the same time promotes competition, they say.
 | A convenient client path allows you to ensure the involvement of the population in the use of services based on Open APIs, accordingly, it is advisable to consider the possibility of organizing equidistant consent management services for providing data (the principle of a "single window"), the study said. |  |
Its authors conclude that by the end of 2023, there is no universal solution for the implementation of open APIs in the world. The key indicator can be considered the level of penetration of standards into the daily life of citizens of the country, this indicator in the world does not exceed 19%.
According to the researchers, the exchange of data in the "large to large" format is a logical initial stage in the implementation of open APIs, which is necessary for the development of new demanded services, increasing the information security of data and trust on the part of users, as well as to exclude regulatory arbitration.
OPEN ECOSYSTEMS AND OPEN API GLOBAL TRENDS. DEVELOPMENT PROSPECTS IN RUSSIA.
Notes
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