Open Banking Adoption in 2022 Accelerates Banking Digitalization

7 February 2022

Open banking in 2022 will accelerate banking digitalization

In 2022, open banking is predicted to be even more promising. It’s good to be true, since open banking is a clear manifestation of banking digitalization. With it, companies will be fully prepared to face various challenges that await in the future.

In a global landscape, Forrester Research forecasts that open banking will further establish itself in the financial sector, particularly in the United States and the European Union. This is actually in line with Bank Indonesia's report which estimates that digital banking transactions will experience a significant increase in 2022. The figure even touched Rp8,000 trillion—from Rp40,000 trillion in 2021 to Rp48,000 trillion in 2022.

As one of the banking digitalization pillars, open banking allows any bank to open their customers' financial data and information to third parties. From a banking perspective, this certainly has a positive impact. Bank BRI itself recorded digital transaction growth which skyrocketed to 402.6 percent as of March 2021 compared to the previous year.

To welcome the upcoming trend of open banking, Bank Indonesia has inaugurated the National Standard for Open API Payment (SNAP). It was officially set on August 16, 2021, and has been implemented gradually in every Open API payment.

What is Bank Indonesia’s SNAP?

Standar Nasional Open API Pembayaran (SNAP) dari Bank Indonesia

National Standard for Open API Payment or Standar Nasional Open API Pembayaran (SNAP) in Indonesian is a national standard set by Bank Indonesia for a set of protocols and instructions on open banking. With the standard having been implemented, the interconnection between applications in processing payment transactions will be easier.

SNAP includes technical, security, as well as governance standards. With it, various transaction services will be unified in one single system. Moreover, SNAP objectives are as follows:

  1. establish a healthy, competitive, and innovative payment system;
  2. promote integration, interconnection, interoperability, security, and reliability of payment system infrastructure;
  3. improve market practice that is healthy, efficient, and fair in the payment system implementation.

This is an important step in accelerating open banking and banking digitalization, notably in the payment system area. The initiative is also a follow-up to the Indonesian Payment System Blueprint 2025 vision.

Thus, SNAP will certainly help open banking in becoming a strategic solution to speed up digital transformation. It will help banks to enjoy digital innovation opportunities that keep arising. As a result, they can provide more customer-oriented services.

Open Banking Benefits for Banking Digitalization in 2022

Open Banking Benefits for Banking Digitalization in 2022

A report from Strands stated that more than 65% of banks do not have an open banking strategy at all. The figure actually shows that open banking has a great opportunity to benefit from. That's why BRIAPI is also trying to leverage the momentum.

As one of Bank BRI's most important assets, BRIAPI seeks to gain from open banking huge potential. Here's how BRIAPI makes use of it.

1. Build reputation with excellent cybersecurity

Bank BRI is the first bank in Southeast Asia to receive PA-DSS, which stands for Payment Application Data Security Standard. It is an international certification from PCI Security Standard Council. It ensures that Bank BRI develops payment applications that are secure and do not store customer privacy.

Since 2019, Bank BRI has also obtained ISO 27001 certification for BRIAPI. It is an international security standard for implementing an information security management system for a particular product. Both international certifications highlight that Bank BRI has proven its commitment to maintaining the security of customer data.

The impact, of course, is that customers will have more confidence in BRIAPI services. They acknowledge that Bank BRI has ensured its virtual banking security across all lines.

2. Provide the best customer experience

Open banking is a monumental process towards banking digitalization. By capitalizing on open banking, a bank has proven its readiness for the future, especially in providing an excellent customer experience.

Bank BRI has proven it with BRIAPI. Various BRIAPI services help partners to speed up the digital transformation process. This is because BRIAPI brings together various payment options.

You can get simpler and easier transaction processes with cheaper transfer fees. No more hassle in doing any financial activity. Only one click away and your customers can choose the best payment option from Bank BRI.

3. Seize opportunities to collaborate

In line with its literal definition, open banking opens the gateway for collaboration. It happens between Bank BRI and various companies, both digital and non-digital ones. And thanks to BRIAPI, collaboration has become much easier and faster.

This is because BRIAPI allows companies to integrate with Bank BRI services in a single, direct process. The implementation cost becomes cheaper as well. It is different if you carry out the partnership through a Host to Host (H2H) scheme.

If companies use the scheme, the integration will be done per product with extra costs for each integrated product. Moreover, they must own a dedicated server—things you don't need to have if you work on BRIAPI open banking.

BRIAPI Open Banking Use Cases: DOKU and Indogrosir

To learn how BRIAPI supports digital transformation, the following are examples of BRIAPI open banking use by two of Bank BRI partners, DOKU and Indogrosir.

DOKU

DOKU leverages BRIAPI to create a digital payment ecosystem

As a B2B company focused on the payment gateway sector, DOKU seeks to create a digital payment ecosystem for its merchants. Together with BRIAPI, DOKU has succeeded in reaching a wider area of business, especially after providing BRI Direct Debit and Fund Transfer services.

BRI Direct Debit connects DOKU with Bank BRI debit card services as a Source of Fund (SoF). In a single registration process, their merchants can leverage faster and easier transactions. DOKU also utilizes Fund Transfer, which allows merchants to make transfers either to Bank BRI accounts or to the other banks’.

Indogrosir

Indogrosir benefits BRIAPI to enrich their payment options

Next is Indogrosir, which is a BRIAPI partner that utilizes BRIVA to enrich their online payment options.

By implementing BRIVA, Indogrosir consumers and MSMEs can make payments faster and easier. Everything is also automated thanks to the use of unique code in the form of a Virtual Account number.

This certainly helps more than 600 Indogrosir suppliers and distributor networks, as well as 130,000 MSMEs to work with the retail company since BRIVA optimizes their overall shopping experience.


With BRIAPI, DOKU and Indogrosir have enjoyed fruitful success by giving more convenience in online transactions. BRI Direct Debit, Fund Transfer, and BRIVA have succeeded in optimizing their services and company operations. So, in this open banking era, it is the time for you to boost your business by using BRIAPI products.