With significant recent advances in data generation and analysis, the financial industry has been leading efforts in implementing the right to data portability through open banking and open finance initiatives, or the sharing and leveraging of customer-permissioned data by banks and financial sector players with third party developers and firms to build applications and services. Among the OECD countries, 25 have established a data-sharing framework for open banking, and 8 for open finance, as of 2022.
The recently published paper on "Open Finance: The Korean Experience and Opportunities and Challenges for the East Asia and Pacific Region", a product of the World Bank, Korea Institute of Finance, and Korea Financial Telecommunications & Clearings Institute, shares the lessons learned from Korea’s successful implementation of open banking and open finance policy initiatives in 2019 and 2022, respectively. The paper traces Korea’s journey to open banking/finance, covering the background context, timeline, regulatory environment, and key characteristics to analyze the factors that contributed to the efficient implementation and rapid expansion of the initiatives.
This event will provide insights for countries in the East Asia and Pacific region on how to effectively implement open banking/finance initiatives based on Korea’s experience, and how these initiatives can be leveraged to promote financial inclusion goals. Participants will also have a chance to learn from the Philippines and Indonesia on their early experiences in efforts to establish open banking/finance systems, and from the Consultative Group to Assist the Poor (CGAP) on the experiences of other countries such as Brazil, India and Singapore.