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It’s been slightly over a year
since the UK embarked on its Open Banking reforms,
mandating banks to share their data with regulated
third parties. And in two months’ time, all major
banks in Australia will need to open their customer
data on credit and debit cards, deposit as well as
transaction accounts. Open Banking appears to be
gaining traction globally.
So, how is this new landscape
playing out in Asia Pacific, especially in the
corporate space?
Current Level of
Awareness Among Corporates: Medium
The developments around Open
Banking have yet to gain full awareness among
corporates. In Australia, for example, when CFOs and
corporate treasurers are asked whether they are
familiar with the latest Open Banking developments,
there seems to be a nearly equal split between those
who are fully aware (30.9 percent) vis-à-vis those
somewhat aware (33.9 percent) and entirely unaware
(35.2 percent).
Encouragingly, however, the
very fact that all large businesses surveyed in Asia
have at least an idea of how they want Open Banking
to improve their payments services signals that they
somewhat understand what it entails.
Opportunities with
Transaction Banking and Payments
Transaction banking and payments has been singled
out as the most likely area to reap the rewards of
Open Banking with more than one in three (35.2
percent) large corporates in Australia nominating
it, ahead of cash management (28.3 percent),
treasury (23.0 percent) and finance (12.1 percent).
Key Focal Points: Pricing Transparency and Real
Time Visibility
While there are ample opportunities for Open Banking
to remake business payment solutions, the highest
priorities are to improve price transparency and
enhance real time visibility of payment status,
cited by over four in five businesses in Asia.
Other areas where Open Banking can play a key role
in upgrading the payments process include achieving
real time cross border payment processing (73.5
percent), improving multi-account management (54.0
percent) and furnishing transaction data in formats
compatible with businesses’ existing systems (48.4
percent).
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