Priya Patel
TLDR:
– The National Bank of Kazakhstan (NBK) and the National Payment Corporation have released the initial results of their Open API and Open Banking pilot project.
– The project aims to modernize Kazakhstan’s financial sector and provide digital financial services to clients.
The Open Banking concept involves the standardized exchange of financial information between financial institutions and third-party providers with the client’s consent. This is facilitated by Open API technology, which allows for secure access to consumer data. The pilot project involved 128 clients and several second-tier banks, and following its success, Kazakhstan has updated its roadmap for the implementation of Open Banking in 2024.
Kazakhstan’s financial system is currently bank-centric, which hinders competition and cooperation in the financial market. The adoption of Open Banking is expected to foster innovation, protect the interests and data of citizens, and create a transparent and competitive financial ecosystem.
The demand for Open Banking is growing globally, with approximately 100 countries implementing or developing the model. The volume of transactions within the Open Banking model is projected to reach $330 billion by 2027, showcasing its efficiency and potential for growth. Open Banking is not limited to banking operations and has the potential to transform related industries such as insurance, real estate, and trade.
Overall, Kazakhstan’s entry into the Open Banking market is a significant step in modernizing its financial sector and providing more efficient and convenient services to clients.
