Forbes – by Zennon Kapron
Open banking is the use of application programming interfaces (APIs) to streamline the sharing of customer bank data with third parties. It “opens up banks” in the sense that it enables customers to have greater control and ownership over their personal information used by financial institutions. In theory, an optimal open banking system would be bespoke, allowing customers to select the services from different financial institutions they liked best, in contrast to the traditional one-size fits all model that remains dominant today.
As the Asia-Pacific region moves beyond the exchange of banking data to open finance, and open data regime, the opportunity will be characterized by what can be built on top of the data – the different applications’ infrastructure and products. Many types of innovative new business models will emerge on the back of the provision of these enriched data sets, which will also enable banks to build individual relationships with each customer and address their real needs.
Alistair Brown, Global Head of EPAM’s Open Banking & Payments group notes, “Once we have got this wonderful treasure trove of better data accessible in one place, we can actually see it all lining up for making informed management decisions based on that. That’s the new beginning we are looking forward to.”
For more information on Open Banking in Asia, see the latest report from Kapronasia in collaboration with EPAM on the readiness of legacy systems for open banking.
Learn more about the trends facing the banking industry in EPAM Continuum’s latest Consumer Banking Report: https://www.epam.com/2022-banking-report