RBC launches data sharing portal for developers
TORONTO .oyal Bank is opening up select bits of its data to external software developers in a bid to foster innovation and create new tools for consumers.
The bank said Tuesday that it will allow eligible external developers and clients to access some .BC banking data to build and test banking-related applications.
.BC is offering five application programming interface (API) portals based around credit card rates and fees, the minimum down payment for home buying, branch locations, mortgage amortization schedules and information about safety deposit boxes at specific branches.
The portals will help lead to transformations in the banking sector, said Sumit Oberai, .BC senior vicepresident of digital technology. “By providing external developers, industry innovators and clients with access to select .BC APIs, we have the opportunity to increase connectivity, create new tools and experiences for clients, and enable open and innovative collaboration to improve the future of banking.”
The bank also says it will be launching additional portals in the future.
The move is part of a wider trend toward “open banking,” where third-parties such as financial technology startups get access to bank data to develop apps.
All but one of 100 payment executives at major banks globally said they were planning major investments in open banking by 2020, according to an online survey by Accenture released last year.
However, security concerns about increased sharing of data are widespread, with 50 per cent of respondents in the survey saying that a move toward open banking increases risks.
.BC’s initial portals are limited to currentlypublic information, but open banking is expected to eventually move toward customers sharing their personal banking data.
The increased flow of information could open up new possibilities in online and mobile banking, such as a seamless pooling of financial data from multiple bank accounts into one app, or geolocation data overlayed on payments so consumers know exactly where their money is being spent.
Governments are also considering ways to increase competition in the sector, with the Ministry of Finance saying last August that it was examining the merits of open banking.
The Canadian Bankers Association responded to the ministry that while its members are proponents of innovation, they are also concerned about the potential impacts on safety, soundness and stability in Canada’s financial system.
“Canadian banks have devoted very significant resources to creating wellestablished information security and data warehouses that meet the highest standards worldwide, the CBA said.
“Any initiative that could undermine this trust would be very problematic for Canadian consumers, financial market participants and the broader economy.”