apidays LIVE Hong Kong 2021 - API Ecosystem & Data Interchange August 25 & 26, 2021 API Ecosystem and Banking Open API Phase III & IV Carl Seto, Director, Product and Marketing at JETCO

1. Confidentiality
This document (“Document”) and the
information contained herein constitutes
“Confidential Information”, which has strict
restrictions on sharing and use. The
Document may not be further distributed or
reproduced, in whole or in part, without the
written consent of Joint Electronic Teller
Services Limited (“JETCO”).
JETCO APIX
Aug 26, 2021

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 The Open API Framework released by HKMA requires the banks in Hong Kong to open up
and encourage B2B connections.
 JETCO established the first industry platform facilitating banks to comply with the new
regulations and connect with third-party service providers (TSPs).
What is JETCO APIX?
“銀通的API平台名為JETCO APIX， 有如連鎖超級市場， 讓不同銀
行及第三方機構將服務「 上架」 ， 在平台上發放產品及服務資訊”
“銀通行政總裁蔡炳中表示， 開放銀行是全球大勢所趨， 有助促進
本地金融業持續創新， 加強競爭力”
“What started as a simple cross-bank ATM network has entered the
API-age and is providing cutting edge, open banking technology”
“Users will be able to use the platform to collaborate and co-create
new products at a lower cost and with a shorter time to market”
Fintech Awards 2018
Outstanding Cross Industry
Innovative Platform
2019年度深圳市金融
科技专项奖
Awards

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APIX helps cross-industry players optimizing integration efforts and time and bloom API usage
in Hong Kong, especially for finance industry
Extended Digital Value Chain
Banking Open API
(Phase I & II launched)
Non-bank API Providers
How does APIX Work?
FI as API consumers
TSP as API consumers
API CONSUMERS API PROVIDERS

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How does APIX Support Tech Companies?
 For tech companies who would like to be TSPs of Banking Open API
 Do risk-free and cost-free testing of the API from multiple banks on APIX sandbox
 Streamline process from sandbox testing to go live
 Onboard qualified tech companies to APIX Sandbox as API providers to increase their
business exposures
 Being featured on APIX website
 Connect to a fast growing developer community registered on APIX
 Leverage JETCO as bank consortium and our business partner network

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How does APIX Support Tech Companies?
 Provide use case cultivation opportunities with banks and other potential business
partners
 Being invited to have direct dialogues or POC opportunities with banks or potential
partners if there are good potential use cases
 Perform onboarding assessments for both API providers and consumers on APIX
 APIX will conduct assessment for every API providers and consumers to provide a
secure and controlled environment for innovation

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Tools/Solutions Search
API Directory Search
Cross-industry
Innovations
Governance &
Standardization
Banks
Investment
Insurance Co.
eCommerce
FinTech
F & B
Lenders
Wealth Mgmt
Travel
Telecom
Public Services
Product Aggregator
Enable Open API Ecosystem

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HKMA announced the Fintech 2025 strategy on June 8, 2021, with the 1st focus of “All Banks Go
Fintech”:
 Continue to promote the all-round adoption of Fintech by banks
 Encourage banks to fully digitalize their operations, from front-end to back-end
 Identify Fintech business areas or specific technology types which may be underdeveloped and
provide corresponding support
Opportunities Ahead
Business Opportunities in Different Aspects

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Banking Open API Phase III & IV
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HKMA Open API Framework – Scopes for Phase III and IV
Phase Functions Timeline
III
Deposit account information
 Account availability (yes/no)
 Account status
 Account balance
 Transaction details
 For corporate & SME
customers: Mar 2022
 For retail customers:
Jun 2022
IV
Faster Payment System App-to-app
payments
Dec 2021

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Below is a typical Phase III case where customers can access their bank account information
via a TSP, with customers’ consents being granted
How it works with JETCO APIX?
Bank A
Bank B
Bank C
Customer
Bank D
Bank E
Bank F
TSP
Benefits for TSP
 1 connection setup
 1 TSP assessment
 Multiple bank
connections

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Unlike UK and Europe, Hong Kong’s open banking use cases are not government-driven but
business-driven. If you would like to be a TSP, below are some challenges:
 Cost vs Benefits
 The use case should be beneficial to banks, e.g. incremental business, customer
stickiness, process enhancement, regulatory requirements, etc.
 Customer Data
 How to gain the trust from customers to share their bank data with you?
 How to convince banks that you can handle customer data properly?
 Readiness for TSP Onboarding
 Fulfill the requirements of the Common Baseline
Key Challenges for TSPs
Find out more: carlseto@jetco.com.hk

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THANK YOU