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 firstname.lastname@example.org, Anuj Agrawal email@example.com or your IDC account manager. For media inquiries, contact Theresa Rago firstname.lastname@example.org or Alvin Afuang email@example.com.
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