Financial sector news

Ukraine is actively implementing an open banking system that brings significant changes to the banking sector. This system requires banks and other institutions to provide access to customer data to third parties with their consent. This opens up new opportunities for the development of financial services, but at the same time creates a number of challenges that banks will have to address. This was stated by Oleksandr Karpov, Director of the Ukrainian Interbank Association of Payment System Members EMA, on April 3 at the Main Financial Award of the Year ceremony organized and held by the EMA partner, the Association of Ukrainian Banks.

Open banking is a new model of interaction between banks and customers and third-party service providers based on providing access to customer data with their consent. This innovative concept has a significant potential to transform the Ukrainian banking sector, opening up new opportunities for development while posing a number of challenges that need to be carefully considered.

Opportunities for open banking
Open banking can bring significant benefits to both customers and banks.
For customers:
- Increased choice and convenience: Customers will be able to access their financial data from a variety of sources, allowing them to compare products and services from different banks and choose the best deals.
- Personalized offers: Banks will be able to offer customers more personalized products and services based on their financial data.
- Innovative products and services: Open banking can stimulate the development of new innovative products and services that were not previously possible.
For banks:
- Expanding the customer base: Banks will be able to find new customers by offering them access to their data and services through third-party platforms.
- Increased revenue: Open banking can lead to an increase in bank revenues through new products and services, as well as data access fees.
- Cost reduction: Banks will be able to automate some processes and reduce customer service costs.

Challenges of open banking
Despite the significant opportunities, open banking also brings a number of challenges that banks will have to address:
- Ensuring data security: Banks must ensure that customer data is protected from unauthorized access and use.
- Creating and implementing API standards: API standards will need to be created and implemented to ensure interoperability between different systems.
- Regulation and oversight: A clear system of regulation and oversight of market participants will need to be developed.
- Changing business models: Banks will have to adapt their business models to the new environment to remain competitive.
 

Prospects for open banking
Open banking has significant potential for the development of the Ukrainian banking sector. It is expected to make the market more competitive, innovative and convenient for customers.

Ukraine is already taking steps to implement open banking:
- In 2021, the Law on Payment Services was adopted, which regulates this area.
- By 2025, banks and other institutions will have to implement API standards and other open banking requirements.
- The National Bank of Ukraine will regulate the activities of market participants and ensure the security of customer data.

The implementation of open banking will be a complex process, but it can bring significant benefits to both the Ukrainian economy and its citizens. The prospects of open banking for the Ukrainian banking sector are significant. This is an opportunity to expand the customer base, increase market influence and increase business profitability. In addition, the introduction of open banking can help improve the quality of customer service and increase customer satisfaction with banks.