Open banking is aimed at making the financial system more transparent and accessible by making banking customers’ financial data available to third-party developers securely through the use of application programming interfaces or APIs.
Both open banking and Web3 banking share similar goals when it comes to efficiency, transparency and inclusivity. The convergence of open banking and Web3 is destined to transform and redefine the financial landscape by extending the advantages of open banking further through the incorporation of Web3 innovations such as DeFi, smart contracts and asset tokenisation.
The launch of Standard Chartered’s Open Banking Marketplace this week at Money 20/20 Asia helps cement one of the world’s oldest banks as a forerunner and innovator in Web3 banking and finance.
The Open Banking Marketplace builds on an earlier iteration of the bank’s aXess platform introduced in 2019 which was part of a broader initiative targeted at the developer community to boost its open banking capabilities.
Users of the Open Banking Marketplace platform can access more than 100 ready-built API products ranging from cash and FX to trade and securities, filter solutions tailored to various industries across 33 markets globally; in addition to creating a project space and conducting testing in an upgraded simulator environment that supports the writing and testing of production-ready codes.
“Open banking has been a transformative force over the last decade, with APIs playing an important role in enabling corporates to build future-proof propositions that meet the needs of the evolving digital economy,” said Mark Willis, Standard Chartered’s global head of API and open banking ecosystems, digital channels and data analytics. “Accelerating on our commitment to drive innovation by partnering with developers, corporates and fintechs to embark on this transformation journey, we are excited to introduce our new and revamped Open Banking Marketplace that provides a comprehensive, user-friendly interface to help them make informed and timely decisions when assessing and implementing the use of APIs within their business environment.”
He added that the initial feedback from clients and partners had been positive through the various resources available on the platform, and hoped more of them could draw inspiration from other organisations that had successfully tapped into the suite of API products to realise their business objectives.
Open banking can support Web3 banking primarily by bridging the gap between traditional and decentralised financial systems. APIs can be used to connect traditional banking systems with blockchain platforms to enable the transfer of funds between bank accounts and digital wallets. This functionality is crucial for the widespread adoption of Web3 banking as it provides a familiar entry points for users accustomed to traditional banking.
The integration of open banking with Web3 can also help decentralised platforms navigate complex regulatory landscapes. Open banking operates within a regulatory framework that ensures security, privacy, and compliance with financial laws, which can lend credibility and structure to Web3 projects, making them more palatable to regulators and traditional financial entities.
