The Cambridge Centre for Alternative Finance (CCAF) has published a report on Open Banking in APAC countries. The research covers 16 different jurisdictions and the status of Open Banking development across the region. Open Banking, also known as Open Finance, refers to the ability to share data across financial platforms, streamlining these services and making changes or enhancements far easier. In some jurisdictions, like the UK, Open Banking is mandated. Others have taken a more organic approach.
The CCAF report states that Open Banking is developing rapidly across APAC but is largely being driven by the market and not government dictates. The report indicates that regulation-led Open Banking has been adopted by six jurisdictions, while eight jurisdictions have adopted market-driven Open Banking.
More than half (56%) of the jurisdictions reviewed have enacted Open Banking regulations. This is said to closely align with the global average of 63%.
APAC Open Banking platforms are reportedly excelling in live data sharing. CCAF states that APAC scores higher than the global average for live data access in jurisdictions with both market-driven and regulation-led countries.
In 2024, CCAF reported on the global Open Banking environment, sharing that 95 jurisdictions are making their benefits available for customers, but frameworks vary significantly based on each jurisdiction’s policy objectives. This report states that regulation-led Open Banking has been adopted by 54 jurisdictions, and market-driven, by 28 jurisdictions. Fostering competition in financial services is the primary goal of Open Banking initiatives, alongside secondary objectives of innovation and financial inclusion.
In the opening of the APAC report, the authors explain that there has been significant progress in Open Banking in the APAC region, but challenges exist in aligning policy goals with implementation.
CCAF states that expansion beyond banking (Open Finance) has been slow.
The balance between allowing market forces to prevail and regulation that allows innovation while protecting consumers and business users will always be a challenge. Additionally, frameworks to allow cross-border collaboration are also in the mix to maximise the benefits of the technology.
CCAF invites policymakers and other industry insiders to build upon their findings and collaborate to foster an innovative and more inclusive financial ecosystem.