In 2022, the Superintendency of Banks of the Dominican Republic (SBDR) set out to explore how open banking can strengthen supervision and innovation. Through the International Finance Corporation (IFC) Technical Sandbox, we collaborated with other financial institutions to test how standardized APIs and a shared data dictionary could enable automatic, secure, and efficient collection of information on deposit products.

Inspire – Design – Experiment – Conclude

We structured the pilot in four stages, moving from theory to practical application, while maintaining regulatory oversight at every step:

1. Inspire: align understanding of open banking and its potential for transforming financial services and regulatory reporting.
2. Design: co-create a common data dictionary and technical specifications, so that all participants were “speaking the same language.”
3. Experiment: testing APIs within the sandbox using sample data and simulated consent flows in different scenarios.
4. Conclude: documenting lessons and identifying next steps toward a broader open banking framework.

One participant summed it up well: “It was like going from sending letters by mail to having a real-time chat… but for banking data.”

Technical Collaboration and Platform Support

To operationalize the sandbox, we partnered with a specialist technical partner, which ensured that the sandbox functioned as a practical, fully interactive information. The platform now enabled participants to test data-sharing APIs and simulate real-world consent flows in a secure and standardized way.

Building the Foundation: The Data Dictionary

Our iterated data dictionary gave us a shared standard, so all institutions knew what fields, formats, and rules to follow when sharing information.

It defined mandatory data fields, such as customer legal names and account balances, alongside optional elements for consent attributes. It also established standard formats, color codes, and field definitions, forming a common reference point for all participants.

As one of our team members put it: “Having a single dictionary is like agreeing to use the same map; otherwise, everyone ends up speaking a different language.”

This step alone significantly improved data quality and consistency across supervised entities.

Testing the Sandbox in Practice

The Sandbox provided a secure virtual environment where supervised entities could:

• Upload and manage test datasets (customers, products, accounts, balances)
• Query information through a consent-based access flow
• Simulate how authorized third party (TPP) might interact with data under an open banking regime
• Access a developer portal with documentation, examples, and technical support

The onboarding process was straightforward: registering applications, configuring an application, preparing datasets, and uploading it via scripts. Then, we ran test queries to see consolidated balances per customer and test real interactions, creating a realistic experience of open API functionality within a controlled framework.

What We Learned as a Regulator

The Sandbox gave the SBDR valuable supervisory insights:

• Standardization saves time and reduces errors/frictions. Shared APIs and data dictionary save time, minimize errors, and enhance consistency in reporting.
• Collaboration builds trust. Bringing regulator and institutions together in design and testing to validate and deepen mutual understanding and alignment of expectations.
• Supervisory innovation is achieveable. The sandbox allowed us to experiment with new models of data exchange without compromising prudential standards.

Most importantly, we realized that open banking is not merely a global trend, but a practical opportunity to enhance efficiency, transparency, and consumer value in our own market.

Our experience reinforces that technical sandboxes can be powerful supervisory tools, allowing regulators to:

• Test new frameworks in a controlled environment before national rollout.
• Identify policy gaps related to data protection, consent management, and interoperability.
• Build internal capacity to engage with emerging financial technologies on an equal footing with the industry.

Looking Ahead

This pilot was the beginning of a more data-driven, collaborative, and inclusive regulatory approach to open finance. It marks the first step toward a financial system where customers can see their consolidated banking information in one place, receive personalized offers, and compare products without going from bank to bank. For institutions, it will mean more efficiency, fewer errors, and new business opportunities. And for the country, it’s a clear signal that we’re moving toward international standards in financial services.

Key Takeaways for Regulators                                                                                                         

• Start small and controlled: use pilots to learn before regulating.
• Co-create standards with supervised entities to ensure practicality.
• Embed supervision in innovation: sandboxes can strengthen—not weaken—regulatory oversight.

Learn more about this topic by reading AFI’s Policy Development and Implementation Guide for Inclusive Open Finance.