The collaboration will allow UPC to be a dominant player in the Open Banking platform by providing a new and standardised approach for Ukrainian financial institutions to access value-added services via the open API marketplace.
UPC will introduce a new Open Banking Platform in conjunction with Tietoevry Banking later in 2023 as part of its ambition to develop an Open API Marketplace and provide a superior client experience. The new platform will provide UPC users with a convenient and standardised manner to access a wide range of UPC services. It will also enable UPC to operate the API aggregation business throughout Ukraine and abroad. The Berlin Group framework, which is a pan-European payments interoperability standards and harmonisation project with the primary goal of developing an open and universal Open Banking API scheme, will be used to provide ease of access.
Furthermore, the Tietoevry Banking Open Banking Platform allows users to simply and swiftly combine APIs from any financial player in the market, such as fintech, banks, and other payment service providers. This enables the aggregation of diverse client services and publishing via uniform APIs, decreasing the work required for service integration.
The Ukrainian Parliament adopted a new bill in July 2021 to strengthen the country's payment services. The law calls for the establishment of Open Banking in order to spur financial growth in Ukraine. The platform and supplied services will completely comply with this new law and beyond as part of UPC's Open Banking Platform implementation effort.
The decision was made after the Ukrainian Parliament approved a draft payment services law aimed at opening up the Ukrainian payment sector. The Ukrainian National Bank (NBU) oversaw the endeavour, which aimed to completely overhaul Ukraine's existing regulatory framework for the payments industry.
Ultimately, Open Banking Exchange (OBE) launched Open Banking Exchange Ukraine in December 2021 to assist the growth of Open Banking and Open Finance in the country. The OBE team, which is locally backed by Sigma Software Company, has a long history with the Ukrainian Interbank Payment Systems Member Association (EMA) and is a member of the Open API Group.
Despite the fact that the Payments Legislation is new, several Ukrainian banks have already released APIs. The National Bank of Ukraine has begun to use APIs to publish data and make it available to the public. The central bank has 23 public APIs and 6 APIs under trial stages as of August 13th, 2021.
Monobank has already created an API dashboard for developers with 15 APIs that allow them to access and use bank data.PrivatBank was the first bank in the world to provide a public API in September 2009, and it already has 4,900 users. PrivatBank launched its public API in Ukraine in 2014, and there are already more than 100 APIs in its library.Regulation can assist the market to adopt the correct ways, but banks realise that Open APIs provide chances for development and innovation even in the absence of legislation.
Ukraine will come closer to Europe and other countries with more modern financial infrastructure by implementing the global Open Banking experience.
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