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29 May 2018

IDC Financial Insights Ranks Top 13 Asia/Pacific Markets on their Readiness for Open Banking

SINGAPORE, May 30th, 2018 – IDC Financial Insights ranks Top 13 Asia/Pacific (excluding Japan) markets based on their readiness for Open Banking, according to the latest IDC Perspective : Readiness of Asia/Pacific Markets for Open Banking. IDC’s assessment is based on five key factors that are believed to be fundamental drivers for the growth of Open Banking opportunities and fulfillment of Open Banking’s promise.

Five key factors to be considered for evaluation of country readiness are: support of the regulatory environment, level of adoption of partner and external APIs, state of digital transformation in banks, level of security preparedness of banks, and supporting fintech/third-party ecosystem.

Michael Araneta, AVP for IDC Financial Insights Asia/Pacific states, "At this point in 2018, Open Banking adoption will be prodded on by regulators who are themselves competing to be the most proactive regulator in the region. The regulatory framework for Open Banking will be comprehensive, touching upon various aspects of customer data protection, IT security, systemic risk, and customer fairness. Banks will need to align their Open Banking strategies with these — ideally before their competitors succeed in doing so."

The infographic Who’s Ready for Open can be viewed at the IDC Infographic Library

Lack of regulatory guidelines, poor adoption of APIs in banking, and lack of security preparedness to support Open Banking has kept many Asia/Pacific countries at the lower end of the spectrum of readiness. However, IDC Financial Insights also recognizes that Open Banking will likely be a years-long program for banks in Asia/Pacific.

"We expect that Open Banking will inevitably be a discussion within the bank. Banks must recognize the need to embrace digital transformation related to API banking and bank-fintech/TPP relationship at the highest levels of the organization and keep abreast of the new security solutions to support that in the future," says Anuj Agrawal, Senior Research Manager at IDC Financial Insights Asia/Pacific.

For more information on this report, IDC Perspective: Readiness of Asia/Pacific Markets for Open Banking (AP43574418, May 2018), please contact Michael Araneta maraneta@idc.com, Anuj Agrawal anujagrawal@idc.com or your IDC account manager. For media inquiries, contact Theresa Rago trago@idc.com or Alvin Afuang aafuang@idc.com.

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About IDC Financial Insights

IDC Financial Insights assists financial service businesses and IT leaders, as well as the suppliers who serve them, in making more effective technology decisions by providing accurate, timely, and insightful fact-based research and consulting services. Staffed by senior analysts with decades of industry experience, our global research analyzes and advises on business and technology issues facing the banking, insurance, and securities and investments industries. International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology market. IDC is a subsidiary of IDG, the world's leading technology, media, research, and events company.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading media, data and marketing services company that activates and engages the most influential technology buyers. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC  and LinkedIn.

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Contact
For more information, contact:

Anuj Agrawal
anujagrawal@idc.com
+919619917314

Michael Araneta
maraneta@idc.com
+662-645 2370 ext 510

Alvin Afuang
aafuang@idc.com
+63917 7974586

Theresa Rago
trago@idc.com
+65 9159 3053