From Open APIs to Open Banking, Part 1
How to Approach Open APIs? Threat and Opportunity
Returning to a global perspective, both US and European open API trends, as well as regulatory and market participant responses, are valuable reference points for Japanese market players looking for insight. While Japan was mulling advancements related to open APIs, Celent continued to find best practices in each industry including banking, insurance, securities, and wealth management in the pioneering European market and the US market. We also continued to offer strategic advice to financial institutions engaging in individual projects and technology vendors.
Open API: Threat and Opportunity
In the global market, open APIs and open-API banking have already reached the implementation stage. Looking to shed more light on where the market stands today, we conducted the SWOT (strengths, weaknesses, opportunities, and threats) analysis below while considering the initiatives of early movers in the market and recognizing that Japan’s market is nascent. For banks, which epitomize traditional financial service providers, open APIs proffer greater business opportunities to differentiate themselves than using measures to respond to regulation. At the same time, the flip side of this opportunity is accompanied by latent risks.