On February 11, the APFF (Asia Pacific Financial Forum) and EPA Asia jointly hosted a well attended Round Table event at NRI – ASG Group’s Sydney office. The agenda was mainly focusing on the state of Open Banking in APAC and also the topic of inclusion in Open Banking.
The first panel on the state of open banking was moderated by John Ryan, EPA Asia, and the second panel on Inclusion by Kristofer Rogers, Split Payments.
There was generally a very lively debate throughout the day, and the following were some of the points noted :
1) open banking use cases across jurisdictions such as categorised view of spending, payments, life cycle and impact on consumer behaviours need to be explored from banks to fintechs to retailers such as grocers and telcos.
2) the difficulty in making forceful recommendations in terms of standardisation of technology/ technical API standardisation is the level of digital literacy and the commercialisation of data by data holders, third party providers and agent networks.
3) the idea of a National Digital Identity needs further investigation, inter-operability of digitisation of payments, the liability consent framework, and data sovereignty (including the scope and granularity of consents).
4) Solutions to Digital Identity Standards are currently inconsistent, the EU’s PSD2 compared with Canada’s OSC/ Payments Canada Approach.
5) Regulatory requirements may deal with the harmonisation of standards for data sharing, payment initiation, open data and may extend to product data, transaction data and customer data.
6) Policy initiatives require inter-agency consultation, activity may not be actor generated. The payment evolution may be open but may be used by some to restrict competition.
7) Collaboration with the payments industry is required so that firms can innovate through technology and establish trust with consumers when dealing with payments platform, digital identity and for these reasons, standards may be required.
These findings are included in the EPA Asia forward looking policy agenda.