The other digital enablers: How are regulators shaping the use of open APIs and the cloud globally, and what more can be done?

Over the past decade, emerging technology and changing client behaviour and market demand has seen banks put open application programming interfaces (APIs) and cloud technology at the heart of their business strategies. The regulatory response has happened at different speeds globally, but has broadly focused on laying the foundations for realising the growth opportunities for emerging technologies, while addressing the risks they may bring. Policymakers around the world are focused on promoting innovation by supporting competition and removing barriers to technology deployment. The next few years will shape the future of financial technology (FinTech). While there is a strong commitment from regulators to drive innovation, there still exist certain regulatory challenges to the immediate uptake of new technologies in the banking industry. This paper — leveraging content from a recent report by Deutsche Bank, ‘Regulation for banking transformation’ (https://cib.db.com/insights-and-initiatives/flow/regulation-driving-banking-transformation.htm), which included contributions from the European Banking Federation (EBF), the Asia Securities Industry & Financial Markets Association (ASIFMA), Google, Microsoft, Ernst & Young and Latham & Watkins — provides a high-level overview of the regulations applicable with respect to banks’, and their clients’, use of open APIs and cloud, and assesses areas where regulatory and market change could help drive uptake of these technologies.