Fintech apps get an open platform

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Fintech apps get an open platform

The government will be launching a platform at the end of this month that will allow fintech companies to develop apps for customers to manage their finances without having to juggle different financial institution’s programs.

For example, in existing household finance apps, users have to input income and a expenditure on their own. A fintech company can develop an app in which household income and expenditures are automatically inputted if the app is developed on a standardized application programming interface (API) available from the open platform.

Additionally while current apps only allow viewing of bank accounts from a single financial company, an app that allows consumers to view all their accounts in different institutions will be available thanks to the open platform.

The Financial Services Commission on Wednesday said 16 banks and 25 brokerage firms are participating in the joint open platform, which includes an open API and a test bed.

The API allows access to financial companies’ electronic systems such as viewing account balances.

The API, which is crucial in developing software and apps, is expected to reduce the time it takes for fintech companies to develop financial service apps. An open platform will help fintech companies test whether the electronic financial networks work or not.

Previously fintech companies had to sign individual contracts with different financial companies, which delayed many projects. Even if they made a fintech service for one financial company, the program wouldn’t be compatible with another financial company.

“Once the open platform is completed, fintech companies will no longer have to sign contracts with different financial companies,” said Yim Jong-yong, Financial Services Commission Chairman, during a press briefing on Wednesday. “It is now possible to develop a service that connects all financial companies, which will contribute to providing various financial services.”

The open platform will be managed by the Korea Financial Telecommunications and Clearing Institute and Koscom Corporation.

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