Finastra launches Open Banking Readiness Index in Asia Pacific - the new framework for banks to stay ahead
Research shows that momentum for Open Banking is accelerating in Asia Pacific, with majority of banks expected to ramp up their capabilities by 2020
Hong Kong, October 30 2018 – Finastra today launched its Open Banking Readiness Index, providing for the first time a framework for banks in the Asia-Pacific region to assess their capabilities and benchmark readiness against peers in the race towards Open Banking. Unveiled during Hong Kong Fintech Week, the research reveals that 84% of the top 146 banks in Asia Pacific are considering collaborating with external partners to enhance their Open Banking capabilities between 2018 and 2020.
Developed in partnership with IDC Financial Insights, the Finastra Open Banking Readiness Index measures banks across five dimensions – Adoption of APIs, Fintech/Third-Party Ecosystem, State of Data-based Transformation, Data Monetization, and State of Innovation. It is based on interviews and surveys with C-suite executives, Heads of IT and Chief Digital Officers from the top 146 banks across 14 markets in Asia Pacific – Singapore, Australia, Hong Kong, New Zealand, China, Malaysia, South Korea, India, Thailand, Taiwan, Japan Philippines, Indonesia and Vietnam.
Imad Abou Haidar, Managing Director, Asia Pacific at Finastra said, “The future of finance is open. We see an unprecedented opportunity to transform the value chain of banking by leveraging on Open APIs and cloud technology to create new value for customers through faster innovation. We look forward to banks in the region leveraging the framework and insights provided by the Index to identify areas for improvement and cash in on the promise of Open Banking to deliver truly transformative financial services.”
Across various Open Banking initiatives tracked by the research, IDC Financial Insights notes that the Asia-Pacific style of Open Banking is a combination of capabilities, with different markets taking different approaches. However, the capabilities will converge, providing more collaborative, innovative, and responsive banking services. Key survey findings include:
- Hong Kong places as one of the top three markets in Asia Pacific in Open Banking readiness, alongside Singapore and Australia
- Platforms will play a significant role in managing the convergence of capabilities as 85% of banks agree that “a platform” will be the key to binding the customer, business and technology capabilities together
- Only 25% of Asia-Pacific banks are in the advanced stage of data-based transformation
Michael Araneta, Regional Head of Research for IDC Financial Insights said, "Open Banking is a rare change for banks to unbundle and re-bundle the value chain of financial services so products, services, data, and functionalities can be consumed and provided by third parties. This will fundamentally change the way banks will rethink products and delivery channels, so that they are able to transform customer engagement."
The latest research commissioned by Finastra reflects its vision to help banks deliver transformative financial services.
Smita Gupta, Senior Director, Regional Marketing, Asia Pacific at Finastra said, “The Finastra Open Banking Readiness Index is a first-in-the-industry research report which offers banks actionable scorecards and insights to further drive their innovation and growth aspirations in this dynamic region. We are committed to helping banks realize the benefits of Open Banking to increase their customer reach, create alternate direct and indirect revenue streams, and drive greater innovation through transforming how they work with third parties to bring new propositions to market.”
Download an InfoBrief of the Finastra Open Banking Readiness Index here.
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