Open banking isn’t arriving. It’s already here, reshaping how financial data moves and how decisions are made. For businesses managing intricate flows of capital, the question isn’t whether to engage—it’s a question of how open banking will necessitate change in your organisation. As regulatory mandates catch up with technological capability, the window for passive observation narrows.
In the simplest terms, open banking refers to the structured sharing of financial data through secure APIs. With customer consent, third parties can access accounts, initiate payments, or analyse transaction histories. The architecture rests on permission and interoperability: customers control their data, while API-based banking frameworks securely provide the pathways for data. It’s a model that prioritises both flexibility and traceability.
Financial APIs in open banking typically fall into three categories: data, transaction, and product. Each serves a distinct purpose, but together, they create a stitched-together interface for finance operations.
|
API Type |
Functionality Description |
|
Data APIs |
Provide visibility into account balances, transaction histories, and customer profile data |
|
Transaction APIs |
Enable Payment Initiation Services (PIS), allowing third parties to initiate fund transfers |
|
Product APIs |
Expose financial product details such as rates, fees, and terms from multiple providers |
Picture real-time liquidity forecasting powered by account aggregation. Think reconciliation workflows that adapt on the fly—with fewer emails, fewer CSVs, and fewer delays.
Some notable open banking use cases for CFOs include:
What used to take hours now takes minutes. With direct access to live accounts, teams reduce their reliance on batch processing and legacy file exchanges. Clarity increases, latency drops. Embedded finance layers, including dynamic lending or instant settlement tools, reduce uncertainty around cash positions. The result: lower costs, more dependable reporting, and fewer strategic surprises.
The EU led the initial charge with PSD2, compelling banks to open their data to licensed third parties. PSD3 is now on the horizon, focusing on strengthening API performance, clarifying liability, and tightening authentication rules. Businesses operating in Europe should prepare for more explicit technical standards and faster incident response expectations.
Post-Brexit, the UK continues its own track with the Open Banking Implementation Entity (OBIE). The UK framework remains influential, especially with its prescriptive API standards and robust oversight. For finance teams in Britain, the key concern lies in maintaining parity with EU reforms while navigating domestic adjustments.
The US takes a measured, market-led approach. Section 1033 of the Dodd-Frank Act serves as a foundational reference, but comprehensive rules remain pending. As a result, API standards are fragmented, often shaped by large aggregators. Finance leaders must conduct more due diligence on providers to avoid blind spots.
Adoption varies widely across Asia-Pacific, reflecting differing priorities and regulatory maturity levels.
China - China does not operate within a traditional open banking framework but mandates data-sharing among licensed institutions through centralised infrastructure. The People's Bank of China (PBoC) governs much of the financial data exchange via unified standards. CFOs engaging with China should prepare for compliance with national security laws and domestic tech stacks rather than global API norms.
Hong Kong - Hong Kong’s Open API Framework introduced by the HKMA in 2018 provides a phased roadmap, starting with product information and progressing to transaction capabilities. Although not mandatory, the framework has spurred adoption among major banks and fintechs alike.
India - India’s approach is unique—focused on building open infrastructure through the IndiaStack and Account Aggregator framework. Regulatory agencies like RBI support standardised data-sharing across finance, insurance, and health sectors. The model is cooperative, government-supported, and increasingly influential.
Japan - Japan’s open banking model is opt-in. Financial institutions are encouraged—but not required—to open APIs under the oversight of the Financial Services Agency. Coordination is handled via bank-designated “electronic payment service providers.” The result is cautious growth, with higher reliance on trusted intermediaries.
South Korea - South Korea’s Financial Services Commission launched the Open Banking System in late 2019, allowing third parties to securely access consumer banking data. Participation is growing, but commercial usage remains closely supervised. Businesses need to work with certified providers and expect granular consumer consent rules.
Singapore - Singapore takes a leadership role through the Monetary Authority of Singapore (MAS), promoting an API-first ecosystem. Initiatives like the Financial Industry API Register support transparency and innovation. With clear guidance but limited compulsion, Singapore’s approach encourages rapid adoption while keeping entry voluntary.
Others - In other parts of Southeast Asia, countries like Thailand, Malaysia, and Indonesia are exploring national strategies with early-stage implementation. Each market brings local nuances, with some integrating digital ID systems or real-time payment rails alongside open banking ambitions.
For multi-national global brands, this patchwork demands region-specific strategies and readiness to integrate with disparate ecosystems.
Australia’s Consumer Data Right (CDR) extends beyond banking to telecom and energy, offering a consolidated model for data portability. The framework encourages cross-sector participation, but with stricter consent and compliance obligations. CFOs should prepare for a data-sharing environment that doesn’t stop at financial services.
New Zealand is supporting early efforts through working groups and pilot initiatives. Without a mandate, open banking adoption in New Zealand is still organic.
Several countries are in exploratory phases. Saudi Arabia and the UAE have launched initial frameworks with voluntary adoption. African markets are leveraging mobile-first ecosystems as a springboard, with Kenya and Nigeria making early moves. CFOs should view these markets as emerging but not yet predictable.
Different jurisdictions, different rules—but a shared trajectory toward portability and transparency.
Open banking is the entry point. Open finance extends the model to encompass pensions, insurance, and beyond. Embedded finance goes further still, allowing payment or lending services to appear natively inside third-party experiences. Together, they hint at a future where financial access is fluid, and where your tools speak to each other without translation.
Integration isn’t just about tools—it’s about posture. Are your systems modular enough to plug into an API-first world? Can your data layer support live queries, not just end-of-day reports? Waiting until open banking becomes universal means missing the efficiencies it offers now. Even limited adoption today can build the muscle you’ll need tomorrow.
Here’s a quick checklist to gauge readiness:
This checklist isn’t exhaustive. Depending on your jurisdiction or operational structure, additional factors may apply.
When finance leaders are ready to act, Antom stands ready to support. Whether preparing for regional compliance, embedding new financial APIs, or simply reducing operational drag, Antom aligns with your goals. Your strategy leads. Our infrastructure follows.