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Asia Ramps Up Open Banking Activity; Konsentus Reveals the 35% of World’s Countries Already Involved

One in three nations has begun its own open banking journey – with over 65 national open banking programmes globally; according to a new study from the open finance technology and advisory services provider, Konsentus.

Konsentus has updated its Global Open Banking and Open Finance Map to include richer data on the evolution of open banking worldwide. The update finds that open banking, the new wave of financial data access, has reached a significant milestone, with 68 countries (representing around 35 per cent of the world) having either live or in development programmes.

The Konsentus study highlights that there is a clear regulatory push towards open banking, with 64 per cent of open banking initiatives being mandatory via legislation. Only four markets are currently pursuing a market-led approach and 26 per cent of initiatives lack formal regulation but have strong regulatory support and a centralised program approach.

How is open banking advancing across Asia?

In Asia, the ‘hybrid’ approach has started to emerge as popular. This approach essentially sees collaboration between the regulators and the market, without any formal regulation. However, the analysis shows there is no ‘one size fits all’, with each jurisdiction taking a slightly different approach to their implementation to meet local requirements.

Asia also boasts a wide range of open banking and open finance programmes that are already live. Hong Kong, Japan, South Korea, China and Singapore all have some element of programmes in the space that are already live.

A key region to watch is the fourteen countries that make up the Eastern Europe and Central Asian Network (EECAN), with over 50 per cent of the network having a live or active program. Asia, and in particular Southeast Asia, is also ramping up activity and by 2025 this region will likely include new jurisdictions throughout 2024.

Mike Woods, CEO of Konsentus, open banking Asia
Mike Woods, CEO of Konsentus

Mike Woods, CEO of Konsentus, discussed the global findings: “Given that open banking is in its infancy, the fact that 35 per cent of the world is pursuing an open banking program is testament to its relevance and importance in the global financial digitisation agenda. We anticipate this number will continue to grow and that open banking testing and implementation will intensify in 2024.

“Konsentus has become much more rigorous in its criteria for this important asset to reflect the real development on the ground. As such, we have introduced a hybrid category as well as showcasing which markets are open banking versus open finance versus open data. The map will provide a valuable guide for the industry to track progress and spot new developments.”

Author

  • Tom joined The Fintech Times in 2022 as part of the operations team; later joining the editorial team as a journalist.

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