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35 software and third-party providers , is vast and somewhat concerning for businesses and consumers alike , and in order to gauge this new territory , Finastra launched the Open Banking Readiness Index in APAC . The survey measured banks against their adoption of APIs , third-party ecosystems , state of data-based transformation , data monetisation and state of innovation . While 70 % of banks agree open banking will increase their customer reach , only 23 % have invested in an API management platform , and just 25 % of APAC banks are in the ‘ advanced ’ stages of a data-based transformation . The remaining majority will need to step up to compete against the fintechs in this new ecosystem , but many exhibit concerns about customer data privacy ( 71 %) and compliance ( 53 %).
These concerns are not unfounded , as the data sharing involved in open banking is unfamiliar territory for the finance sector and as such poses cultural and technological challenges . “ Traditionally , banks have not been very open to sharing this data ,” says Gupta .
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