CB to promote Open Banking concept

The Central Bank of Sri Lanka (CB) is assessing the possibility of introducing an Open Banking Framework for Sri Lanka in order to improve access to financial services as well as drive Financial Technology (FinTech) innovations in Sri Lanka. 
“An Open Banking Framework would provide a governance structure to facilitate customer-consent based online sharing of financial data with financial service providers using Open Application Programming Interfaces (APIs),” the banking regulator said in a public announcement on Monday. 
Further, it is expected that an Open Banking Framework would enable an advanced way of banking in a secure manner that may also strengthen the relationship between banks, providers of financial services, FinTechs and customers, resulting in more innovative financial products and services.
The bank said that Open Banking is the process of customers giving consent to third-party service providers to access their financial data held in financial institutions in order to obtain value-added services. It uses Internet-based technology, namely Open APIs to enable third parties including FinTech companies to connect with banks or other financial institutions. 
Open Banking enables customers to share pre-determined financial and customer data in a secure environment with third parties that provide innovative financial services.  
“Accordingly, the CB invites all relevant stakeholders at entrepreneurial, academic, investor, government, non-governmental and multi-lateral agency levels, as well as banks, non-bank financial institutions, payment service providers, FinTechs, experts in Information Technology, to share their knowledge and experience in the format provided at https://www.cbsl.gov.lk/en/press/media/notices,” the announcement said. (BS)