The continual spread of Open Banking means that regulators and merchants in various markets are becoming more aware of the critical importance of security as data speeds increase. One of the more intriguing markets moving forward with financial innovation is China, where regulators have upgraded both banking and cybersecurity rules in recent years.
The rules — as with Europe’s regulations surrounding financial data collection and use — are intended to keep information safe, while fostering growth for banks and merchants. Since China is one of the more dominant markets in the world, its changing rules are a matter of interest for both lawmakers in neighboring markets and merchants looking to expand into the country.
In the latest Merchants Guide To Navigating Global Payments Regulations, PYMNTS analyzes the expansion of the Open Banking world, as well as the global impact of China’s evolving online data and security laws.
Around The Data Protection And Security World
China is aiming to make the rules that govern financial institutions more transparent, focusing on digital-only banks seeking to operate within its borders. Lawmakers have crafted new regulations that support these online services, while seeking to protect against fraud, similar to other laws issued by international regulators in countries across Europe. The aim of the laws is to facilitate financial innovation.
China’s laws are also changing the way both foreign and domestic companies in the country can conduct business. Its regulators recently issued warnings to 41 apps, noting that the apps were not compliant with the country’s cybersecurity and data collection laws. The warnings included Chinese telecommunications service Tencent, which operates messaging mobile app WeChat and its financial feature WeChat Pay.
Open Banking developments are continuing in the rest of the world, too. EU regulators are moving to make sure all data sent online is adequately protected, creating an upgraded list of rules to help personal information remain secure when sent between European entities and other parties. The rules come as collected and used consumer data has grown faster.
For more on this and other stories, visit the Tracker’s News & Trends section.
Navigating China’s Evolving Open Banking Regulations
China has been an intriguing market to businesses for decades, and notoriously hard to enter. This difficulty has only heightened in recent years, as the country’s lawmakers have developed new financial rules to respond to global banking trends. These developments are significant to both foreign and domestic Chinese players, and could influence how Open Banking continues to spread.
In recent interviews, PYMNTS spoke with three experts on the market: William Carter, deputy director and fellow of the technology policy program at the U.S. Center for Strategic and International Studies (CSIS); Martin Chorzempa, research fellow at the Peterson Institute for International Economics (PIIE); and Julia Voo, research director for the China Cyber Policy Initiative at Harvard Kennedy School’s Belfer Center for Science and International Affairs.
In the Tracker’s feature story, PYMNTS sought to uncover the reality of Chinese Open Banking developments.
A Closer Look At The Chinese Regulatory Space
Chinese regulators have been tweaking the cybersecurity and financial laws in the country for years, following similar efforts by lawmakers in Europe and other areas to keep up with changing technologies and needs. However, China remains a market of untapped potential for many foreign merchants, which must figure out where these regulations apply before they can successfully enter the market and comply. China’s upgraded rules could also further influence the spread of Open Banking worldwide, as they integrate into other platforms in the increasingly global economy.
To learn more about how Chinese Open Banking and security rules are shifting, and what that means for merchants both inside and outside the market, visit the Tracker’s Deep Dive.
About The Tracker
The Merchants Guide To Navigating Global Payments Regulations, powered by Ekata, is the go-to monthly resource for updates on the trends and changes regarding PSD2, as well as other privacy and data protection regulations.