Singapore platform to enable open finance

Out-Law News | 30 Oct 2019 | 9:47 am |

A new platform designed to open up access to data across financial services in Singapore is likely to be unveiled in 2020, the regulator in the city state has confirmed.

The platform would allow financial service customers to aggregate the data held about them across different financial institutions, including banks and insurers, and control how that information is then accessed by businesses in the market, including fintech providers, according to a report by the Business Times.

The publication reported that Ravi Menon, managing director of the Monetary Authority of Singapore (MAS), expects the regulator to announce further details of the plans next year.

The plans represent an extension of the 'open banking' framework implemented in the UK and similar reforms in the payment services market across the EU delivered via the second Payment Services Directive (PSD2).

The UK and EU initiatives enable third parties to link into the systems of banks to access customer account data and provide their own services to businesses and consumers using that information.

Third party access is only enabled if strict conditions are met, including where customers have given their consent to the data sharing and if standards on cybersecurity are adhered to.

Like under the open banking and PSD2 regimes, the use of application programming interfaces (APIs) is envisaged in Singapore to provide the technological link between the different systems that will need connected to aggregate customers' data.