Open Finance Can Provide Customer Financial Profiles: Exploring its Market Potential
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The Indonesian financial industry presents a significant market potential for open finance. This is evident from a research report, the *Open Finance Deep Dive Report*, a collaboration between the Katadata Insight Center (KIC) and Finantier.
Open finance is an advanced stage of open banking, where all financial institutions involved in the ecosystem can share data through open application programming interfaces (APIs).
This system can be applied, for example, to account aggregation, providing a customer's financial profile by collecting and integrating their financial and alternative data.
According to KIC research, banks have the greatest potential for implementing account aggregation, with a market value estimated at US$92 million in 2022.
The next largest market potential is held by the e-wallet industry (estimated at US$28.55 million), followed by the telecommunications industry (US$22.2 million), e-commerce (US$21.46 million), and P2P lending (US$21.46 million).
This open finance research was conducted by KIC from July to October 2022 through desk research and in-depth interviews with 23 stakeholders from various industries, including open finance platforms, banks, fintech companies, e-commerce businesses, credit bureaus, telecommunications providers, regulators, and other relevant parties.
Findings from the desk research and interviews were then presented and discussed in focus group discussions (FGDs) involving several financial industry associations. The full report can be downloaded [here](https://kic.katadata.co.id/insights/45/open-finance-deep-dive-report-unlocking-the-potential-of-open-finance-in-indonesia).
"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."
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