Open banking is a promising development in the digitalization of banking. To keep up with open banking, expected to grow by 20% in 2022, Bank Indonesia has introduced the National Standard for Open API Payment method, or SNAP Bank Indonesia. It aims to create a healthy, safety and competitive payment system industry among fintech companies in Indonesia. Here is what you need to know about SNAP Bank Indonesia.
Launching the National Standard Regulation and SNAP in 2021 is a stepping stone in accelerating Indonesia's open banking in payment system services. SNAP is expected to create integration, interconnection, and interoperability among API providers to push the efficiency of Indonesian payment systems and its digital economy.
Bank Indonesia welcomed the trend of open banking with SNAP
SNAP is a national standard established by Bank Indonesia (BI) that includes guidelines and protocols for enabling open banking inter-application connectivity. It is an open API payment method standard in Indonesia that aims to meet the needs of fintech companies by providing secure and reliable systems. The standard was developed by the Indonesia Payment System Association (ASPI).
Through this SNAP implementation, BI aims to accelerate and facilitate open banking in the payment ecosystem, which this initiative is integrate to the Indonesia Payment System Blueprint (BSPI) 2025 vision.
SNAP is crucial for the government to accelerate open banking and banking digitalization, especially in Indonesia's payment system. SNAP includes technical, connectivity, security, and the government standard for open banking. SNAP unifies various transaction services in one single system.
By implementing the objectives, fintech companies and banks can use digital innovation more efficiently and effectively. It will help them to provide more customer-oriented services to the public. The SNAP Regulation requires that verifications for Open API Payments be conducted for Service Providers, Service Users, and developers of Open API systems to comply with the SNAP Technical Standards.
Launched on August 17, 2021, SNAP Bank Indonesia was released as a gift for Indonesia's Independence 76th Anniversary. Perry Warjiyo, the Governor of Bank Indonesia, said that the latest BI initiative is a form of digitalization innovation synergy to the advancement of Indonesia. "We are writing history, not only for the present day but also to keep moving forward for the future," Governor Perry explained.
Bank Indonesia has also created SNAP Developer Site
To support the implementation of SNAP, Bank Indonesia has created a SNAP Developer Site for the industry. The site will provide the following:
Published standards, including technical and security measures, data standards, and technical specifications;
Online sandbox application to test SNAP-based open API security standards, safety standards, data standards, and technical specifications
Although the public can access the published standards and publication directory of the Developer Site, the sandbox application will temporarily be accessible to:
Service provider and/or prospective service providers of SNAP-based open API payments;
Service users and/or prospective service providers of SNAP-based open API payments;
The system, application, and/or device developers of SNAP-based open API Payments.
The implementation of SNAP Bank Indonesia becomes a crucial step towards digitalization as it provides a secure, efficient, and reliable payment system to the public, allowing them to have more inclusive and sustainable economic activities.
Overall, SNAP Bank Indonesia is essential solution to digitalizing banking in Indonesia and developing a modern payment system infrastructure. As a fintech player, Ayoconnect is ahead of the curve as our APIs are already primarily aligned with the BI SNAP Standard. Our close relationship with regulators and associations, as well as our BI License, gives our API clients confidence in working with us.