Open Banking requires that providers of banking services open up their customer data to accredited Third Party Providers via APIs. It was introduced to remove the monopolies of financial markets and encourage greater competition and improve customer experience. Starting with PSD2 compliance and Open Banking regulations in EU and UK last year, the Open Banking regulation has now moved into Australia, Hong Kong, Singapore, Mexico. Israel and more.
The immediate perceptions towards Open Banking were negative. Banks had concerns that their identity and value-add could be lost, and they would be reduced to being commodity providers. However, as more education around Open Banking is created, customers are seeing its advantages and banks are looking at Open Banking in a more positive light. Banks now view Open Banking as the best way to initiate their journey towards digital banking. This shift in thinking has resulted in many banks in non-regulated regions like Singapore, South Africa and Brazil voluntarily opening up their APIs to leverage the benefits of Open Banking.
WSO2 Open Banking is designed to help banks of varying sizes, architectures, technology needs and priorities progress towards a faster and hassle-free path to compliance. Our experience runs deep with core Open Banking technologies such as API Management, Identity and Access Management, Enterprise Integration and Analytics. We combine it with domain expertise to help global financial services organizations create stellar Open Banking solutions.
In helping solve Open Banking challenges, our approach also lays the foundation for digital banking - helping financial institutions become more API-driven, interact more friction-free with business partners, and shift to a more agile IT infrastructure.