According to a recent survey by open finance technology and advisory services company Konsentus, one in three countries has started its own open banking journey, with over 65 national open banking programs worldwide.
Richer information on the global development of open banking is now included in Konsentus’ revised Global Open Banking and Open Finance Map. According to the report, open banking—the new wave of financial data access. It has achieved a noteworthy milestone, with development or live programs in 68 nations. Or about 35% of the global population.
According to the Konsentus report, 64% of open banking efforts are mandated by law. In order to demonstrate the evident regulatory push in favor of open banking. Currently, only four markets are using a market-led strategy. Furthermore, 26% of efforts have a centralized program structure and substantial regulatory support but no official legislation.
What is the progress of open banking in Asia?
The “hybrid” strategy is beginning to gain traction in Asia. Without any official regulations, this method essentially sees the market and authorities working together.
The data reveals that there isn’t a “one size fits all” solution. With each jurisdiction implementing them in a somewhat different way to satisfy regional requirements.
Asia also has a large number of active open banking and open finance initiatives. There are already several live programs in the space in Hong Kong, Japan. Moreover, open banking is also active in South Korea, China, and Singapore.
The fourteen nations that comprise the Eastern Europe and Central Asian Network (EECAN). With more than 50% of the network featuring live or ongoing programming. It’s vital to pay attention to that area.
Asia is likewise picking increasing speed, especially Southeast Asia. Moreover, by 2025 this region is probably going to incorporate new jurisdictions all through 2024.
“Given that open banking is in its infancy, the fact that 35 per cent of the world is pursuing an open banking program. This is a testament to its relevance and importance in the global financial digitisation agenda,” said Konsentus CEO Mike Woods in discussing the global findings.
Furthermore, he stated, “We predict that in 2024, open banking testing and implementation will pick up steam and this figure will only rise further.”
He continued saying,“Konsentus has tightened up its requirements significantly in order to ensure that this significant asset accurately reflects the actual state of affairs.”
He furthermore stated, “In light of this, we have created a hybrid category. And highlighted the markets that are open data, open banking, and open finance. The map will be an invaluable tool for the industry to monitor advancements and identify fresh insights.”
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