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IDC enlists best practices in open banking APIs in APAC

best practices in open banking APIs in APAC

IDC Financial Insights recently published its follow-up report on open banking application program interfaces (APIs) adoption in Asia/Pacific titled PeerScape: Best Early Steps in Deploying Open Banking Application Program Interfaces in Asia/Pacific. The report tackles best practices in open banking APIs adoption and provides valuable insights to early adopters. IDC believes 35% of Asia Pacific banks which IDC believes have launched, or are planning to launch, open banking APIs this 2017.

Michael Araneta, Associate Vice President for IDC Financial Insights Asia/Pacific remarks, “The momentum for the deployment of open banking APIs is growing. We expect majority of the top 250 Asia/Pacific banks to deploy open APIs in the next two years as they take advantage of the capabilities of third-party partners in improving their organization’s insight into customers, and dealing with them to the point of serving a customer segment of one.”

“The next two years will be a period of determining who to partner with, how to manage these partnerships, and most importantly, why such partnerships are crucial to the bank’s overall business strategy,” Araneta adds.

Introducing open APIs into the banking industry demands a holistic new approach — starting from looking at APIs more as a business opportunity that requires different stakeholders to work together toward achieving a common business goal. This is better than considering open APIs as mere technological approaches to be driven primarily by the technical team.

“While 44% of Asia/Pacific banks are still at the evaluation stage of adoption, it is important for banks to make a head start the right way. Open APIs demand a ‘new product’ approach in which scope, policies, product life cycle, roles, and responsibilities need to be considered alongside technology considerations. This is how banks can stay ahead of the competition and sustain their leadership in what we expect to be a constantly challenging world of banking APIs,” ends Anuj Agarwal. Senior Research Manager, IDC Asia/Pacific.

IDC PeerScape: Best Early Steps in Deploying Open Banking Application Programming Interfaces in Asia/Pacific examines how Asia/Pacific financial institutions are adopting open banking Application Programming Interfaces (APIs) and highlight examples from Asia/Pacific banks as they put together their strategies vis-à-vis APIs and some guidelines in these initial stages of deployment. It is the second report published under the IDC Financial Insights Asia Pacific 2017 report series. The first report in the series, Moving Toward Open Banking APIs: Opportunities and Threats in Asia/Pacific Banking (AP42295917), was published last March 2017.

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