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Finastra launches Open Banking Readiness Index in Asia Pacific

Wednesday 31 October 2018 | 12:29 PM CET

UK-based financial services software provider Finastra has launched its Open Banking Readiness Index, providing a framework for banks in the Asia-Pacific region.

The aim is to assess the capabilities and benchmark readiness of APAC banks 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.

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.

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.

More: Link