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Jakarta Post

Open banking: Let’s be open, it’s time for collaboration

  • Yosea Iskandar


Jakarta   /   Mon, November 30 2020   /  01:00 am
It's easy: A vegetable seller shows an Indonesian Standard Quick Response Code to her customer as a new way of paying at the Oebobo traditional market in Kupang, East Nusa Tenggara, on Sept. 29. The application is being used in 17 markets across the city to facilitate cashless payments as a way to help curb COVID-19. (Antara/Kornelis Kaha)

The convenience offered by digital financial applications has made the fintech industry increasingly popular and prompted exponential growth. Fintech undeniably provides a better customer experience than traditional banks through an array of faster and cheaper products and services. In response to this, several major banks have adopted a new service concept, known as open banking. Third parties are invited to collaborate on developing apps by utilizing application programming interfaces (API) provided by the banks. This technology enables banks and fintech applications to interlink in order to securely share consumer data given proper consent. Issues related to customer data remain highly sensitive in banking. Leaks or misuse of this data may harm customers, damage the bank's reputation and results in the loss of public trust in banking. Thus, this collaborative initiative shou...