This IDC Financial Insights report presents the opportunities and threats that come along with open banking APIs and examines the implications of this change to the business and IT security strategy of banks.
"APIs represent fundamental shifts in IT — in how data is provided and used, how functionalities are developed and deployed, and what level of control customers have. This presents a massive shift in how the existing IT architecture can be made ready and customizable to accommodate the changing requirement without losing control over data. Banks' API strategies require an assessment of internal technical expertise, and identification of the right set of people who understand the impact of this change on future business opportunities and associated threats, including primarily IT security threats. New roles and capabilities need to be carved out within the bank to be future-ready for such a different future," says Michael Araneta, AVP, IDC Financial Insights Asia/Pacific.
"Open banking APIs will be inevitable as the approach offers so much to the customer, and banks will be compelled to offer these benefits. For the consumer, open banking APIs would mean visibility of bank-related information at one place, accessibility to personalized financial products and services without compromising security, and competitive and lower charges such as reduced charges on card payments and better rates on loan/credit products," says Anuj Agrawal, senior research manager, IDC Financial Insights Asia/Pacific.