Open Banking innovation to be Asia Pacific led – EPA Asia
(18 February 2020 – Asia) The Emerging Payments Association Asia (EPA) has found almost 25 out of 51 markets in the region are ready for Open Banking.
A pan-Asian association based in Sydney, the EPA Asia report notes there is no ‘one-size-fits-all’ approach to implementing Open Banking, presenting an opportunity for regulators, industry and other stakeholders for collaboration. Approaches much b tailored to each market appropriate to the local context, and that would involve continued diversity, experimentation and adaptation.
The benefits of Open Banking include empowering customers to control their own data, consumer choice, and creating new opportunities for competition, collaboration, and innovation. Fintechs and Payment Technology Companies (Paytechs) are moving into this new market poised to provide innovative services to customers. EPAA added that a non-standardized application programming interface (API) ecosystem may give rise to aggregators, a new type of technical service provider which have emerged to meet the same need in markets such as the United States and the United Kingdom.
The survey highlights some key focus areas for the future including the importance of interoperability (including cross-border support), data standards and an appropriate role for regulators. Open Banking is inherently multi-disciplinary and requires the coordination and leadership of regulators, central banks and government agencies. Given the diversity in Asia Pacific, the roadmap for Open Banking development varies. Singapore, Hong Kong, and Australia have focused a considerable amount of energy towards Open Banking, followed by India, Malaysia, Thailand, Japan, Chinese Taipei, New Zealand, Bahrain, and UAE.
“The report notes that Open Banking, properly implemented, will modernise the payments ecosystem and deliver great benefits to consumers. The extent to which success can be achieved in Open Banking depends on connectivity and in particular the standards around data communication” said EPA Asia Director General of Policy and Projects John Ryan, commenting on the results.
“The diversity, experimentation and adaptation seen within the Asia-Pacific and globally, combined with the potential to bring about significant consumer benefits signifies that we are still in a very early phase for Open Banking” Mr Ryan added.
“Open Banking will foster innovation and competition across the sector, leading to more seamless and frictionless user experiences. Ultimately, it holds the promise of providing consumers with greater control over their data and greater choice in the products and services they use” stated Dr. Brad Pragnell, one of the lead contributors to the report.
Subscribe