Welcome to the Financial Services Industry blog series. In this blog series we will discuss actual topics relevant to the Financial Services Industry

Open Banking Solution with AWS for Bank Financial Institutions

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2021-05-28 05:43:10

Welcome to the Financial Services Industry blog series. In this blog series we will discuss actual topics relevant to the Financial Services Industry in Indonesia and how AWS technology can provide solutions to these topics. In this first edition, we will discuss about Open Banking. Open Banking is a very popular topic for the financial services industry and regulators around the world in recent years. Since the Payments Services Directive 2 (PSD2) regulation became effective in the European Union on January 13, 2018, financial services regulators in various countries have followed the same initiative by launching the Open Banking program in their respective countries, such as the USA, Japan, Hong Kong, Singapore, India, Australia, New Zealand, and others (source:

Open Banking presents a major change for the financial services industry where third parties, for example fintech (financial technology) companies, have the opportunity to access consumer financial data and use that data to build fast, easy, convenient and secure alternative financial services based on technology and mobile . Apart from posing a threat, Open Banking can also provide great opportunities for financial service actors who can make good use of this momentum. Open Banking, for example, provides an opportunity for Banks to be more present and closer to consumers by integrating into various third party applications so that consumers will find it easy to access their banking services. Open Banking also allows the Bank to expand its potential consumer base because the Bank can also access consumer data from other financial institutions (reciprocal principle) and have the opportunity to offer financial products and services that are more attractive and more relevant to consumers of other financial institutions if the Bank is able to do so. accurate analysis of these consumer data. Open Banking also provides a new source of revenue for the Bank from API services used by third parties with a predicted market capitalization of USD 43 million by 2026 according to Allied Market Research (source: Forbes - Open Banking Is Now Essential Banking: A New Decade's Global Pressures And Best Responses , Part One)

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