JABAR EKSPRES – Ayoconnect digital payment platform Founder & Chief Operating Officer Chiragh Kirpalani said open finance has a strategic role in digitalization in Southeast Asia, especially Indonesia.
This is because various sectors, including the financial industry and increasingly savvy consumers, require the convenience of digital services.
“Open finance enables a much larger range of financial products and services with more flexible offerings, efficient payment solutions, and most importantly alternative services for underserved markets (unbanked populations),” Chiragh said at the Open Finance Summit 2023 in Jakarta on Wednesday (6/21).
Open finance is a data sharing practice that allows users to share their financial data with third parties through an application programming interface (API). This practice also allows banks to digitize services with guaranteed security.
Based on the Katadata Insight Center report, the open finance market in Indonesia is predicted to reach a total of US$2 billion or equivalent to Rp 31 trillion by 2023, along with the disruption, innovation, and opportunities that open finance presents in the next era of the financial services industry.
Open finance is not only intended for new players in the financial industry, but for all players in the financial services industry.
Meanwhile, President Director of PT Mastercard Indonesia Navin Jain revealed that consumers today use multiple service providers to fulfill their needs and desires. This also applies to financial services.
“Open finance brings all parties together and puts businesses and consumers at the center of where and how their financial data is used,” Navin said on the same occasion.
The result, he continued, is a richer and more consistent customer experience, along with a more inclusive financial and digital ecosystem, which Mastercard is focused on building for everyone everywhere.
As such, Mastercard is committed to supporting industry-led open finance initiatives and helping empower organizations with better financial experiences with open banking platforms, data aggregation solutions, and partnerships like the one in Indonesia with Ayoconnect.
