Open Banking: Global Use Cases and Kazakhstan Market Insights

Within the framework of the international financial conference Astana Finance Days 2021, a market research session Open Banking: Global Use Cases and Kazakhstan Market Insights was held.

At the session, experts discussed the advantages and key drivers of open banking development, regulatory approaches in the world, practical experience of interaction between banks and partner services, and presented the results of the market research Open Banking: Global Use Cases and Kazakhstan Market Insights.

 The open banking market research was prepared by the AIFC in cooperation with the global payment technology solutions company Mastercard, based on a survey of local banks and fintech companies. The experts analysed the world and Kazakhstani experience of using the API, identified the most promising scenarios and strategies for using this approach, touched upon the issues of regulation and standardisation, and identified obstacles to development.

The main goals of the development of open banking, according to Market Research, are the possibility of generating additional income (45%), increasing customer satisfaction (45%), as well as increasing the availability of financial services (45%).

More than 90% of participants expect the regulator to develop standards and recommendations in this area. 36% of the participants noted that the implementation should be simultaneous for all participants, while 28% believe the implementation should be phased.

Account management (73%) and payments and transfers (36%) are the most requested use cases for Open Banking.

Market research is available at the link: https://fintech.aifc.kz/reports/

Pavel Kondrashev, Director of Data & Services Development at Mastercard Kazakhstan, noted:

‘Open Banking can open up many opportunities for different market participants. Around the world, different countries are promoting this concept in different ways. In many markets, Mastercard is involved in creating such an environment. To do this, we connect banks and third parties to exchange the necessary information. We are confident that our joint research will help our partners in Kazakhstan get more information and identify the most promising scenarios and development strategies in this direction.’

Reference:

Astana International Financial Centre (AIFC) created by the initiative of the First President of the Republic of Kazakhstan, Nursultan Nazarbayev. The constitutional law on the establishment of the AIFC signed on December 7, 2015. The purpose of AIFC is the formation of a leading centre of financial services on the international level. AIFC’s tasks are to assist in attracting investments to the country’s economy by creating an attractive environment for investing in financial services, developing the securities market of the Republic of Kazakhstan, ensuring its integration with international capital markets. www.aifc.kz

AIFC Fintech Hub is the meeting point for global start-ups, entrepreneurs, corporations, investors, experts, and specialists in the field of innovation. The development of fintech at the AIFC includes programs for start-up support, corporative innovations, the venture capital market, specially developed rules, and regulators that allow testing products and solutions in the field of fintech. http://www.fintech.aifc.kz/, 

http://www.fintechstars.aifc.kz/

MasterCard (NYSE: MA) is a global technology company operating in the payment industry. Our mission is to provide secure, simple, technological, and affordable transactions, to develop and strengthen the digital economy, which gives benefits to everyone and everywhere. Using secure data and networks, building partnerships, and building on what inspires us, we provide innovations and solutions that help people, financial institutions, governments, and businesses realise their vast potential. Our culture and everything that we do inside the company and beyond determined in accordance with the decency quotient (DQ). We do business in more than 210 countries and territories and create a sustainable world that opens invaluable opportunities for everyone.