Open banking to change financial services in M'sia

KUALA LUMPUR: Open banking is expected to change financial services in Malaysia in the drive to increase competition and reduce cost, foster innovation and address consumer rights, said Sui Jon Ho, International Data Corporation (IDC) financial insights research manager.

He said the open banking concept provided opportunities for both financial institutions and payment service providers as well as striking the right balance between regulation and market dynamics.

“We are seeing many new payment innovations being developed through digital channels, and this helps consumers to control and understand their finances and banking data,” Sui said in his opening remarks at the annual IDC Financial Services Innovation Summit 2018 yesterday.

He added that financial institutions should be bold in their approach to reconfigure existing technological and policy infrastructures and embrace an economy that is pro-trust and not just pro- competition.

“Ensuring that such alternative business models remain robust also means managing competencies within and beyond the walls of the organisations, to create value propositions that are as differentiated as they are relevant,” he said.

Sui said the idea of openness also extended beyond the traditional purview of product or service delivery and technology acquisition as it moved towards collaborative development, white- labeling and IP- sharing that would ultimately redefine the financial services institutions’ role in a collaborative future.

The one- day summit brought together regional industry leaders and prominent financial experts, offering financial services leaders the opportunity to plan their strategy in advance to deliver solutions that meet the challenges of the financial technology- disrupted market conditions. — Bernama