The main aim of Open Banking is to ensure customers have full control of their financial data
According to Crowdfund Insider, Promsvyazbank and Tochka have initiated the use of Open Banking API. The API used by SME-focused fintech was created by the Russian Fintech Association (RFA) and the Bank of Russia.
The firms passed the tests that were being carried out by the Russia Fintech Association. This is a firm that looks to have open banking developed in Russia. The main aim of the tests was to certify that Promsvyazbank and Tochka were adhering to the Open API standards as per the regulatory authorities. Currently, local financial firms in Russia are not mandated to open APIs as well as using Russian standards.
Participating firms are required to adhere to open API standards and observe the set rules without committing to other agreements among themselves. SME accounts data will be the initial use for open APIs between varying banking platforms in Russia. The platform allows bank customers to apply for loans without providing paper account statements from other providers.
The initial set of recommendations for Open Banking was approved by the Bank of Russia in October 2020. These include payment initiation, account data and data security provisions. The Russia Fintech Association is mandated to supervise pilot projects with Fintech entities as well as domestic financial institutions.
For better banking services, Open Banking regulations have been embraced globally. The trend is common in the UK, Australia and other European countries.
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