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  • @fintechna 2:52 pm on December 14, 2018 Permalink | Reply
    Tags: , , , , , Open, , , ,   

    European Open Banking Grows Through Smart Regulation 

    Data privacy regs in Europe provide standards for and to share data, with a customer’s consent, so they can offer tailored solutions.
    Financial Technology

     
  • @fintechna 5:53 am on December 5, 2018 Permalink | Reply
    Tags: , , , , , , Open, , ,   

    Gates Foundation Supports Expansion Of An Open Mobile Banking Platform in Africa 

    With some tech support from the Bill & Melinda an app is launching in .
    Financial Technology

     
  • @fintechna 3:36 pm on October 6, 2018 Permalink | Reply
    Tags: , , , , , , , , Open, ,   

    The brave new world of Open Banking in APAC: Malaysia 

    Following the rollout of regulations in the UK and the launch this year of the EU’s Payment Services Directive 2 (PSD2), countries across the Asia-Pacific region are following suit to establish their own frameworks to enable to share select customer data with third-party providers (TPPs), and TPPs to run transactions on customer accounts.

    The brave new world of Open Banking in APAC: Malaysia fintech
    Click/tap to view larger

    Regulatory Developments

    As in Singapore, ’s approach to Open Banking, while less comprehensive than that of its city-state neighbour, has been to establish a non-mandatory framework and to support banking transformation with the creation of implementation teams. There are currently no timelines for implementation.

    Malaysia’s central bank and principal financial services regulator, Bank Negara Malaysia (BNM), established a Financial Technology Enabler Group (FTEG) in June 2016 to support innovations in the sector. The FTEG is responsible for formulating and enhancing regulatory policies related to the adoption of new in financial services in the country. Accordingly, in mid-2017 it launched a Regulatory Sandbox framework to allow the testing of applicable technology, including Open Banking.

    In its final quarterly bulletin of 2017 [PDF], BNM focused on open APIs and their potential impact on the country’s financial sector, promising to establish an Open API Implementation Group in early 2018. This was set up in March, with a remit to develop standards on open data, security, access rights and oversight arrangements for TPPs, and to review existing regulations covering controls on customer information.

    Also in March, the BNM set up an Interoperable Credit Transfer Framework (ICTF), which promotes collaborative competition for mobile payments.

    Key market initiatives, opportunities & risks

    The government is prioritising the impact of new technology on the banking sector, with insurers and government agencies a secondary focus. Banks have already seen the opportunities and risks, with some acting to anticipate and benefit from the impact of the country’s vibrant fintech scene, although in the main they lack the capabilities to launch and scale open APIs.

    CIMB, for instance, launched its fintech incubation programme as early as 2015, targeting and mentoring startups for their API platforms. The bank subsequently released a point-of-sale and payments platform. Standard Chartered in early 2017 launched a global developer sandbox with limited API capabilities. Later that year, Maybank also launched a developer portal equipped with 20 APIs, enabling 85 differing operations. Hong Leong Bank, meanwhile, runs a “LaunchPad” contest to develop innovations, which led to the successful launch of five applications in its first year.

    Another significant development that banks in Malaysia seized on was BNM’s granting in December 2017 of an e-money license to WeChat Pay, the payments platform run by Chinese tech giant Tencent. Hong Leong Bank, Maybank, Public Bank and CIMB subsequently partnered with WeChat Pay.

    Partnering with fintech innovators is one way banks in Malaysia are monetising Open Banking APIs; bank-specific POS systems have also been sold with payment-API connectivity. Predetermined pricing models—subscriptions, per-call and flat rate charges—have also been used. So far, successful open API use cases such as Maybank’s Treats Card app, on the Maybank2u platform, have been focused on retail customers.

    The brave new world of Open Banking in APAC: Malaysia fintech
    Click/tap to view larger

    Several global, regional and Malaysian banks have granted developers access to their APIs via publicly available developer portals and sandboxes. Maybank, OCBC and DBS have advertised various applications and partnerships that have arisen from the use of their developer platforms. Some other banks, such as CIMB and Hong Leong, have been more selective, privately choosing which fintechs can access their APIs.

    The use of developer portals and individual selection means that Malaysia has a number of siloed Open Banking use cases and products. The country’s Open Banking future will depend on how banks, fintechs and regulators develop a common framework and infrastructure that supports a cohesive ecosystem. The ASEAN Financial Innovation Network (AFIN), has been established to do exactly that.

    AFIN, which is supported by the Monetary Authority of Singapore (MAS) and the International Finance Corporation, aims to accelerate fintech innovation, digital transformation and build an Open Banking ecosystem across the region. This gives Malaysian fintechs and banks the opportunity to develop the infrastructure and capabilities with other geographies to support a regional Open Banking ecosystem.

    Like Singapore, there are risks in Malaysia’s approach: without enforced compliance, the standardisation and adoption of APIs across the country could prove difficult. There is also uncertainty around when the Malaysian authorities will impose regulation.

    In Malaysia as well, further opportunities will present themselves to drive retail and SME customer adoption with additional services and reduce the cost of servicing banks’ customer bases. Ecosystem platforms for real-time data sharing between banks and regulators will enable new use cases and shared revenue models—and, ultimately, enable banks to build their own TPP services using their competitors’ APIs.

    This article was written in collaboration with Ewa Wojcik, Sam Waldman and Hakan Eroglu. Many thanks for their input, research and analysis.

     

    Accenture at Sibos

    We’ll be discussing Open Banking and other topics at Sibos. Come see us at our booth and join us in the conversation around enabling the digital economy. Keep up to date on all the latest from us around Sibos right here on the blog.

     

    The post The brave new world of Open Banking in APAC: Malaysia appeared first on Accenture Banking Blog.

    Accenture Banking Blog

     
  • @fintechna 3:36 pm on October 6, 2018 Permalink | Reply
    Tags: , , , , , , , , Open, ,   

    The brave new world of Open Banking in APAC: Malaysia 

    Following the rollout of regulations in the UK and the launch this year of the EU’s Payment Services Directive 2 (PSD2), countries across the Asia-Pacific region are following suit to establish their own frameworks to enable to share select customer data with third-party providers (TPPs), and TPPs to run transactions on customer accounts.

    The brave new world of Open Banking in APAC: Malaysia fintech
    Click/tap to view larger

    Regulatory Developments

    As in Singapore, ’s approach to Open Banking, while less comprehensive than that of its city-state neighbour, has been to establish a non-mandatory framework and to support banking transformation with the creation of implementation teams. There are currently no timelines for implementation.

    Malaysia’s central bank and principal financial services regulator, Bank Negara Malaysia (BNM), established a Financial Technology Enabler Group (FTEG) in June 2016 to support innovations in the sector. The FTEG is responsible for formulating and enhancing regulatory policies related to the adoption of new in financial services in the country. Accordingly, in mid-2017 it launched a Regulatory Sandbox framework to allow the testing of applicable technology, including Open Banking.

    In its final quarterly bulletin of 2017 [PDF], BNM focused on open APIs and their potential impact on the country’s financial sector, promising to establish an Open API Implementation Group in early 2018. This was set up in March, with a remit to develop standards on open data, security, access rights and oversight arrangements for TPPs, and to review existing regulations covering controls on customer information.

    Also in March, the BNM set up an Interoperable Credit Transfer Framework (ICTF), which promotes collaborative competition for mobile payments.

    Key market initiatives, opportunities & risks

    The government is prioritising the impact of new technology on the banking sector, with insurers and government agencies a secondary focus. Banks have already seen the opportunities and risks, with some acting to anticipate and benefit from the impact of the country’s vibrant fintech scene, although in the main they lack the capabilities to launch and scale open APIs.

    CIMB, for instance, launched its fintech incubation programme as early as 2015, targeting and mentoring startups for their API platforms. The bank subsequently released a point-of-sale and payments platform. Standard Chartered in early 2017 launched a global developer sandbox with limited API capabilities. Later that year, Maybank also launched a developer portal equipped with 20 APIs, enabling 85 differing operations. Hong Leong Bank, meanwhile, runs a “LaunchPad” contest to develop innovations, which led to the successful launch of five applications in its first year.

    Another significant development that banks in Malaysia seized on was BNM’s granting in December 2017 of an e-money license to WeChat Pay, the payments platform run by Chinese tech giant Tencent. Hong Leong Bank, Maybank, Public Bank and CIMB subsequently partnered with WeChat Pay.

    Partnering with fintech innovators is one way banks in Malaysia are monetising Open Banking APIs; bank-specific POS systems have also been sold with payment-API connectivity. Predetermined pricing models—subscriptions, per-call and flat rate charges—have also been used. So far, successful open API use cases such as Maybank’s Treats Card app, on the Maybank2u platform, have been focused on retail customers.

    The brave new world of Open Banking in APAC: Malaysia fintech
    Click/tap to view larger

    Several global, regional and Malaysian banks have granted developers access to their APIs via publicly available developer portals and sandboxes. Maybank, OCBC and DBS have advertised various applications and partnerships that have arisen from the use of their developer platforms. Some other banks, such as CIMB and Hong Leong, have been more selective, privately choosing which fintechs can access their APIs.

    The use of developer portals and individual selection means that Malaysia has a number of siloed Open Banking use cases and products. The country’s Open Banking future will depend on how banks, fintechs and regulators develop a common framework and infrastructure that supports a cohesive ecosystem. The ASEAN Financial Innovation Network (AFIN), has been established to do exactly that.

    AFIN, which is supported by the Monetary Authority of Singapore (MAS) and the International Finance Corporation, aims to accelerate fintech innovation, digital transformation and build an Open Banking ecosystem across the region. This gives Malaysian fintechs and banks the opportunity to develop the infrastructure and capabilities with other geographies to support a regional Open Banking ecosystem.

    Like Singapore, there are risks in Malaysia’s approach: without enforced compliance, the standardisation and adoption of APIs across the country could prove difficult. There is also uncertainty around when the Malaysian authorities will impose regulation.

    In Malaysia as well, further opportunities will present themselves to drive retail and SME customer adoption with additional services and reduce the cost of servicing banks’ customer bases. Ecosystem platforms for real-time data sharing between banks and regulators will enable new use cases and shared revenue models—and, ultimately, enable banks to build their own TPP services using their competitors’ APIs.

    This article was written in collaboration with Ewa Wojcik, Sam Waldman and Hakan Eroglu. Many thanks for their input, research and analysis.

     

    Accenture at Sibos

    We’ll be discussing Open Banking and other topics at Sibos. Come see us at our booth and join us in the conversation around enabling the digital economy. Keep up to date on all the latest from us around Sibos right here on the blog.

     

    The post The brave new world of Open Banking in APAC: Malaysia appeared first on Accenture Banking Blog.

    Accenture Banking Blog

     
  • @fintechna 3:35 pm on September 30, 2018 Permalink | Reply
    Tags: , , , , , , , Open, , ,   

    The brave new world of Open Banking in APAC: Singapore 

    Following the rollout of regulations in the UK and the launch this year of the EU’s Payment Services Directive 2 (PSD2), countries across the Asia-Pacific region are following suit to establish their own frameworks to enable to share select customer data with third-party providers (TPPs), and TPPs to run transactions on customer accounts.

    The brave new world of Open Banking in APAC: Singapore fintech
    Click/tap image to view larger

    Regulatory developments

    ’s approach has matured rapidly to make the city one of the leading jurisdictions for Open Banking in the region. The groundwork was done as early as 2014, under the government’s Smart Nation Singapore initiative to drive the adoption of new digital technologies, starting with open data and payments.

    In November 2016 the Monetary Authority of Singapore (MAS), in collaboration with the Association of Banks in Singapore (ABS), published a comprehensive roadmap—Finance-as-a-Service: API Playbook—which, in effect, set the gold standard for regulatory advice on the topic in Asia. The playbook set out a comprehensive framework that introduced governance, implementation, use cases and design principles for application programming interfaces (APIs), together with a list of over 400 recommended APIs and over 5,600 processes for their development.

    The brave new world of Open Banking in APAC: Singapore fintech
    Click/tap image to view larger

    In May 2017 MAS, the International Finance Corporation and the ASEAN Bankers Association launched the ASEAN Innovation Network. AFIN aims to accelerate financial sector development, boost access to finance, improve the customisability of products and reduce banking costs in the region. AFIN is scheduled to launch their Industry Sandbox, which will sit between banks and fintechs, in late 2018. This interoperable and scalable infrastructure will act as a method to standardise banking infrastructure and data while also allowing institutions to test applications.

    The launch in September 2017 of the Network for Electronic Transfers (NETS) nationwide payments service, including the NETSPay eWallet, was another major milestone. Also in late 2017, the government built an API Exchange (APEX) to serve as a centralised data-sharing platform, which allows government agencies across the city to share data securely through APIs. It has also established a Financial Industry API Register, updated semi-annually, which tracks APIs by functional category as they are launched.

    The approach of Singapore’s authorities to Open Banking has been characterised by a willingness to shape innovation with a comprehensive, non-mandatory regulation and governance framework; to lead by example by opening their own data for APIs, and to establish scalable data practices and a payments infrastructure that underpin innovation in the area. MAS officials have preferred not to force the issue and to approach the development of Open Banking services in an organic fashion, according to comments made in recent media interviews. There is no specific timeline mandated for compliance or adoption.

    Key initiatives, opportunities & risks

    The reason for the regulatory light touch is principally because banks in Singapore see the opportunities of the and are already keenly pursuing them, with competition driving innovation.

    DBS, for instance, launched an Innovation Plan in mid-2015 that had over 1,000 experiments in APIs, cloud computing, microservice architecture and Machine Learning. In May 2016, OCBC Bank launched the first open API developer platform in Asia, Connect2OCBC. CitiBank’s Global Developer Hub opened its first platform in Singapore in late 2016; Standard Chartered did so in early 2017, and DBS in November that year launched an API platform with more than 20 categories and 155 functions. More recently UOB announced plans to launch an open, digital-only bank.

    So far these efforts have been characterised by a focus on retail opportunities, with competition driving banks to move quickly and establish large API platforms while also releasing novel products that showcase Open Banking capabilities.

    Many banks in Singapore, unlike elsewhere in the region, have partnered with fintechs and developers to launch applications that use their publicly available APIs. One example is Standard Chartered’s The Good Life service, which provides its Singapore customers with an ecosystem of merchants that offer deals, alternative payment methods and reward-point options. UOB, by contrast, has been more selective: instead of launching a public developer platform, it has selected specific fintechs and launched applications that leverage their APIs.

    Banks in Singapore have monetised their APIs through a combination of private partnerships with third-party platforms, predetermined pricing models (including subscriptions, per-call and flat-rate charges) and also pricing models determined by sales functions.

    There are risks in Singapore’s approach: Without enforced compliance, API standardisation across the country is difficult. There is also uncertainty around when the MAS will impose regulation.

    Nevertheless, further opportunities will present themselves to drive retail and SME customer adoption with additional services and reduce the cost of servicing banks’ customer bases. Ecosystem platforms for real-time data sharing between banks and regulators will enable new use cases and shared revenue models—and, ultimately, enable banks to build their own TPP services using their competitors’ APIs.

     

    Accenture at Sibos

    We’ll be discussing Open Banking and other topics at Sibos. Come see us at our booth and join us in the conversation around enabling the digital economy. Keep up to date on all the latest from us around Sibos right here on the blog.

     

    The post The brave new world of Open Banking in APAC: Singapore appeared first on Accenture Banking Blog.

    Accenture Banking Blog

     
  • @fintechna 3:35 pm on September 21, 2018 Permalink | Reply
    Tags: , , , , Open,   

    The art of Open Banking regulation 

    Taking Europe as a blueprint, other jurisdictions are now using as an accelerator to meet their own specific goals, which include increasing competition, reducing costs, fostering innovation and addressing consumer rights.

    Some of the most prominent regulations globally include:

    • PSD2 in the European Union
    • CMA Open Banking in the UK
    • HKMA Open API in Hong Kong
    • Australia Treasury Open Banking
    • Other countries in Asia Pacific (e.g. Japan, Malaysia), North America (e.g. US, Canada) and Latin America (e.g. Brazil, Mexico) are currently investigating Open Banking regulations.

    In some cases, the regulations are moderate and favor the banking industry, while others more aggressively favor competition, which could potentially threaten ’ existing business models and revenues.

    To some degree this depends on which of the multiple levers regulators use to achieve their specific goals, including:

    • Target group: Are all banks regulated or a selected set of banks?
    • Product scope: What banking products are targeted? The more products are affected, the more banks will have to find strategies to defend their existing business or take a leader position by innovating themselves.
    • Use cases and access types: What type of use cases and access operations can be performed on the regulated products? Banks could lose their role as the trusted gatekeeper for customers, particularly where regulations require banks to open their networks to allow third parties to initiate transactions.
    • Cost of usage: What are the costs for third-party providers to use the APIs? Most regulations require banks to open up access for free: in such cases, banks need to find ways to monetize Open Banking.
    • Level of openness: Who has access to the APIs? In some cases, regulations allow TPPs to register with the authorities once and gain access to banks’ APIs without any contractual agreements or bank-specific registration processes.
    • Level of market involvement: Who is involved in designing the ? Are banks’ concerns and ambitions taken into account?
    • API standards and infrastructure: Who is designing API and security standards and building the central infrastructure for the market? This is vital: multiple standardization initiatives could lead to fragmentation of standards and directory services.

    How should banks act now?

    As Open Banking rolls out worldwide, regulators are watching developments closely to learn best practices and implement a regime that will best meet their goals. However, too much regulation could threaten banks’ revenues and jeopardize their financial stability—which is not in regulators’ interests.

    The art of Open Banking regulation is in finding the right balance between regulation and market dynamics. Banks in both regulated and unregulated markets should join forces now to take the lead in self-regulating rather being forced to act.

    Read my complete article at Finextra for more insights and share your views.

     

    Accenture at Sibos

    We’ll be discussing Open Banking and other topics at Sibos. Come see us at our booth and join us in the conversation around enabling the digital economy. Keep up to date on all the latest from us around Sibos right here on the blog.

     

    The post The art of Open Banking regulation appeared first on Accenture Banking Blog.

    Accenture Banking Blog

     
  • @fintechna 12:18 am on September 9, 2018 Permalink | Reply
    Tags: 2000, , , , , , , Open, , ,   

    JPMorgan Chase Has More Than 2,000 Open Tech Jobs 

    is on a roll with its digital hiring and currently has 2,000 positions. The bank is looking for a senior digital expert to join its Digital Strategy, Innovation and Partnerships team, as it continues to recruit talent as part of its effort to revamp its team. Last week, Adam K, [&;]
    Bank Innovation

     
  • @fintechna 3:35 pm on August 28, 2018 Permalink | Reply
    Tags: , , , , defining, doomed, , , Open, ,   

    Open Banking: defining moment or doomed from the start? 

    The impending arrival of in Australia may not be news to many in the financial industry. But judging by research we conducted recently, it certainly is to everyday consumers. Of the approximately 2,000 consumers we surveyed, a mere 17 percent were aware the government is implementing new Open Banking laws that will allow them to grant more third parties access to their financial information.

    The poll also showed consumers are concerned about the management of their money and financial data, and that although the whole idea of Open Banking is to have more of that data flowing to companies outside the financial sector so they can use it as a building block for innovative consumer-led products and services, people aren’t necessarily inclined to let that happen in practice. Just 17 percent said they would be willing to share banking data with non-bank third parties—even if they would benefit as a result.

    A question of trust

    All this may seem like a pretty grim indictment of an initiative that’s less than a year away and supposedly destined to reshape the financial landscape. The data certainly indicates there’s some work to be done in terms of educating consumers about what Open Banking entails and its implications. It may even cause some bankers to throw up their hands and wonder whether the whole thing is worth the effort, or dismiss Open Banking as just another regulatory box to tick. But that would be a mistake. And here’s why.

    Australians may be deeply protective of their financial data—but they also seem to trust their with it more than anyone else. Over 80 percent of those surveyed said they would only trust their bank with their financial data, and just 20 percent said they would be open to giving that data to a -up, a large company or a retailer—again, even if there were an incentive to do so.

    Be that as it may, many of these companies will be watching Open Banking closely and looking to develop exciting new products and tools that take full advantage of the new regime. Those products and tools may run up against consumer resistance initially, but if there’s one thing consumers value as much as security, it’s convenience. This is particularly true of an emerging category of banking customer we call the ‘Nomads’: digitally savvy, demanding and accustomed to getting services on demand. These are the needs third parties will be looking to meet—and that banks themselves will increasingly have to deliver on in the future.

    The relative trust that banks enjoy—and the fact that consumers may be slow to share their data with other organisations—gives banks a solid head start in the race to innovate on the back of the data Open Banking makes available. It’s up to banks to maintain and build on that lead by quickly developing targeted, on-demand services that address real customer pain points. Failing to act on the possibilities of Open Banking will eventually result in those customers—and their data—migrating elsewhere.

    Of course, not all Open Banking-based experiments will succeed. But with other organisations trying, and change all but inevitable, a certain degree of boldness is required. Banks shouldn’t be afraid to try, test and fail. These are exciting times for the industry—even if most Australian consumers don’t know it yet.

     

    Accenture at Sibos

    We’ll be discussing Open Banking and other topics at Sibos. Come see us at our booth and join us in the conversation around enabling the digital economy. Keep up to date on all the latest from us around Sibos right here on the blog.

     

    The post Open Banking: defining moment or doomed from the start? appeared first on Accenture Banking Blog.

    Accenture Banking Blog

     
  • @fintechna 3:35 am on August 24, 2018 Permalink | Reply
    Tags: , , , , , , Cultivate, , Open   

    Cultivate your bank to compete in Open Banking ecosystems 

    When an insect searching for food triggers a Venus flytrap, the carnivorous plant reacts within half a second to capture it. It doesn’t have to get ready for that interaction—it’s always ready. need to have the same type of rapid reaction when it comes to partnership opportunities if they are going to thrive in the complex ecosystem of .

    In my last blog, I discussed how traditional banks will likely evolve into various open platform business models to ensure future growth. New entrants like banqUP, Revolut and Starling are already attracting consumers to the concept of marketplace banking—and there are indications that many incumbent banks are getting ready to follow suit. This approach wraps the best money-related apps, products and services from third parties around a robust and well-branded core financial services product (such as a current account or payments) to deliver a richer customer experience and create powerful network effects. Incumbent banks are starting to adopt this model to grow their businesses, making their APIs available to outsiders. These include Barclays, BBVA, RBS, Citi, Santander, Capital One, DBS , Goldman Sachs and others. While our recent research shows that only one percent of banking revenue in the US is being generated by open platforms, it has the potential to rapidly mutate into a Red Piranha flytrap that takes bites out of incumbents’ revenue.

    We&;ve conducted further research to assess where banks stand in their readiness to in the emerging open platform economy—examining three requirements for a healthy and collaborative ecosystem:

    1. Developer portal: the channel environment and experience for developers to interact with bank and customer data
    2. API offerings: the types of banking products and services being exposed as APIs for developers to consume and develop applications around
    3. Developer : the adoption of Open Banking across a broader developer community
    Cultivate your bank to compete in Open Banking ecosystems fintech
    Read the report

    We found that global card services and global financial institutions offer the most advanced and differentiated capabilities across these three dimensions. Banks in southern Europe are differentiated by their platform usability and ecosystem engagement abilities; this explains the relatively higher maturity of developers in these regions. Western European banks seem more focused on exposing APIs that deliver value-added services. Leading digital banks, such as BBVA, which have already made APIs available beyond those mandated by regulations, are presenting various approaches for usage and pricing—a key indicator of developer-portal maturity. Although the developer ecosystems of global banks and card services are clearly ahead of other financial institutions, our research shows that southern European and Nordic banks are rapidly catching up.

    Despite the emergence of more aggressive approaches, the majority of incumbent European banks are only offering those APIs required to comply with PSD2 regulations, and very few are moving into value-add APIs. Fintechs and challenger banks, on the other hand, are working to offer a broad range of APIs and look more like non-financial services platforms, such as Amazon, which offer upwards of 100 APIs for third-party consumption. Also, card services like Visa and Mastercard now offer at least 25 API products that enable a range of services from accessing core business services to advanced data insights.

    Platform banking is still in its infancy, yet we expect to see an explosion of Open Banking APIs from financial institutions in the years ahead.

    Take these steps now to ensure your bank is ready:

    1. Seek out best practices from outside the financial services industry
    2. Develop a strategy to distribute open APIs
    3. Identify the value in going beyond compliance
    4. Introduce transparency in pricing for API consumption
    5. Accelerate network effects through platform innovation

    I invite you to read more about our research and banks’ relative open platform maturity in our report, Competing in the new era: Find value in Open Banking ecosystems 

    The post Cultivate your bank to compete in Open Banking ecosystems appeared first on Accenture Banking Blog.

    Accenture Banking Blog

     
  • @fintechna 3:35 am on August 15, 2018 Permalink | Reply
    Tags: , , , , , Open, ,   

    Asia Pacific Joins the Open Banking Revolution 

    While Europe continues to advance its transformation triggered by the PSD2 and CMA Open Banking regulation, other countries are observing it carefully and planning their own agendas.

    In , the approach to Open Banking is being driven at a country level and is somewhat fragmented for now. There is no single body of legislation as there is with PSD2 across Europe.

    In some Asia Pacific countries, Open Banking is being driven as a regulatory initiative by governments and central . For example:

    • Australia conducted the Open Banking Review in July 2017 and has imposed a phased implementation of Open Banking by July 2019 for the big four banks.
    • In July 2018, the Hong Kong Monetary Authority (HKMA) published the Open API Framework for the Hong Kong banking sector. The HKMA expects local banks to deploy Phase I Open APIs within six months and Phase II Open APIs within 12 to 15 months.

    Meanwhile, in other countries, the implementation of Open Banking is being led through collaboration across the industry. For example:

    • The Monetary Authority of Singapore (MAS) is not compelling banks to share banking data. However, it sees the benefits to Open Banking and is supporting an organic approach to its adoption. In November 2016, MAS and the Association of Banks in Singapore (ABS) published a Financial Industry API Playbook to guide banks and fintechs in developing Open API-based services. Since then, several banks (e.g., DBS, OCBC) have made their APIs available through external developer portals.
    • In New Zealand, on behalf of the government, Payments NZ is coordinating an industry pilot of Open Banking with participation from the five major banks (ANZ, ASB, BNZ, Kiwibank and Westpac) as well as Datacom, Paymark, Trade Me and Mirco.

    With Open Banking, banks should be considering strategies to both attack and defend.

    Traditionally, banks have been very well vertically integrated, covering all aspects of the value chain—from origination to servicing to risk and balance sheet management. But in the last few years, non-bank fintechs and tech giants have started to disrupt this value chain. Asia Pacific has a huge population of untapped, unbanked millennials who are ready to embrace new technologies and services, making it a very attractive market for these disruptors.

    With Open Banking, banks should be considering strategies to both attack and defend. New digital offerings that are hard to copy and/or can be launched and scaled at speed can unlock new value pools. Yolt in the United Kingdom is a good example of this. In Australia, an Open API integration between NAB and Xero is helping NAB defend its SME business: It enables new service propositions such as cloud-based bookkeeping for their SME customers, including instant online approval for business loans.

    The next battleground for banks in an Open Banking world will be with industry ecosystems. There will be a range of opportunities for banks to partner with other corporates to create new value propositions. These will span a range of industries including telecommunications, energy, transport, retail and leisure, and will target customer journeys in completely new ways.

    The post Asia Pacific Joins the Open Banking Revolution appeared first on Accenture Banking Blog.

    Accenture Banking Blog

     
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