Swift Brings World Open Banking Sandbox For Fintechs

Swift Brings World Open Banking Sandbox For Fintechs

by October 18, 2018

SWIFT in conjunction with Australia’s New Payments Platform (NPP) have launched a sandbox that allows independent fintechs to test the NPP network—an Australian, industry-wide infrastructure to enable almost real-time, 24/7 payments.

The network is Australia’s bid to replace the clunky legacy infrastructure that permeated the nation’s finance scene.

The NPP API sandbox, hosted in the cloud, will enable independent developers to start learning and testing the benefits and capabilities of the NPP via APIs.

This development follows the introduction of a new NPP API Framework, which hopes to promote standardisation, interoperability and a consistent experience for open banking APIs. Jointly developed by NPP Australia and SWIFT, the API Framework defines the key technical approach and is aligned to ISO 20022 standards.

This newly established sandbox could serve as competition, or complement, to ASEAN Financial Innovation Network (AFIN) sandbox that is made with collaboration from the Monetary Authority of Singapore (MAS).

With MAS seemingly favouring a more organic and permissive approach towards open banking, the new sandbox could serve as an additional testing grounds for Singaporean financial institutions.

SWIFTly Tackling Issues of Open Banking Fragmentation

Regulators around the world have identified the need for interoperability among financial institutions as they move towards a more open banking model, but in response, are building their own open banking networks and principles in their own national silos, all with their own differing rules.

In a bid to encourage interoperability between different nations, SWIFT attempts to position itself at the center of efforts around the world in an ambitious bid to avoid fragmentation, isolation, and the needless complexities that could frustrate attempts to build the value-added services.

The initial API Framework for the NPP has documented three sample APIs that NPP participants could make available to the wider fintech and payments community in Australia. These are:

PayID Resolution Request: to determine the bank account related to a particular personal or business identifier such as a mobile phone number or email address;
Payment Initiation Request:  to instruct the NPP participant to initiate a payment instruction through the NPP; and
Payment Status Request: to check on the status of an NPP payment

If not for nothing, the same holds true for any Singaporean fintech that eyes Australia as grounds for expansion.

open banking api bill doran swift

Bill Doran, SWIFT Head of Oceania, said:

“The API sandbox for NPP will enable fintechs and corporates to develop their NPP solutions in an independent and secure, zero-footprint environment —before taking their prototypes and customer propositions to the broader market. This should support competition in the financial community in Australia.”



Featured image via SWIFT