Open banking to become major revenue source for banks: Brankas

Brankas recently launched a report titled "Banking-as-a-Service: Rearchitecting Financial Services Landscape," which details the many ways Banking-as-a-Service (BaaS) is changing traditional banking models around the world.

According to Brankas, open banking provides banks with new revenue streams while expanding customer reach. It can also create revenue-sharing ecosystems between banks and third-party platforms on a subscription or referral basis.

According to Markets and Markets, the international open banking market size was valued at $5.5 billion in 2023 and is projected to grow at a CAGR of 16% to reach $11.7 billion in 2028.

"Banking-as-a-Service: Rearchitecting Financial Services Landscape," released by Brankas. Photo courtesy of Brankas

Todd Schweitzer, CEO and co-founder of Brankas, emphasized the importance of Vietnamese banks embracing this opportunity by establishing compliant open API infrastructure and processes as they transition towards open banking.

"Open APIs give banks a new acquisition channel that can be monetized through third-party partner platforms," Sweitzer said. "The financial institutions that are the first to meet the new compliance standards will have a massive advantage in customer acquisition and new product adoption via the State Bank of Vietnam's (SBV) upcoming open banking initiatives."

Todd Schweitzer, CEO and co-founder of Brankas. Photo courtesy of Brankas

The State Bank of Vietnam recently released a draft circular outlining new regulations for open API implementation in the banking sector, emphasizing standardization, data integrity, and security. It includes requirements for authentication, encryption, API documentation, and other data security measures.

The central bank is seeking feedback on the draft and considering successful implementation experiences from other countries to develop a suitable roadmap for the Vietnamese market.

Brankas is an open finance technology company based in APAC and MENA. Brankas boasts a vast network coverage of banks and financial institutions in Southeast Asia, including Open Banking APIs that are connected to more than 80% of the major banks and fintech in Indonesia and the Philippines.

Brankas partners with banks and financial institutions to build and manage compliance for open API protocols. It offers open banking solutions for payment services, identity, user authentication, account opening, lending, remittance, and more.

With Brankas' secure open banking technology, online businesses, fintech companies, and digital banks can use Brankas APIs to create new digital experiences for their users.