Basically, open banking is one of the new breakthroughs in the banking sector that is able to make financial transactions and services easier,faster,integrated,and practical. Therefore, it is not surprising that many people are interested in one of these banking services

Then actually, what is open banking and waht are the benefits of the service? AThen, what are the examples of available open banking services? Also, what are the challanges and what is the future for open banking in Indonesia? To make it clearer, here is an explanation.

Meaning of Open Banking

Literally, open banking is an open banking service. That is, the bank opened the way to build cooperation with third parties. In parties. In particular, for various types of digital applications.

This allows application developers to connect with bank customers safely. For example, what is available on the service BRIAPI.

Connectivity with customers can be done using technology Application Programming Interface (API). With this technology, you can integrate data in anking with data in application

Some examples of applications with the use of texhnology Application Programming Interface that is aplikasi yang berbasis fintech and e-commerce. This application is integrated open banking via API and contribute to financial inclusion Now, you can access everything related to finance rigth in the palm of your hand Including, in banking affairs.


Also Read: What is Digital Businnes: Definition Examples and Opportunities in 2022


Open banking Api benefits

Many of the benefits of API can be felt by every stakeholder in the industry, espcially finance through open banking. The benefits of open banking are to provide added value and service excellence for customers, partners, and also the bank.  In addition, the benefits of API can also seen in terms of Banking as a Service (BaaS). Here's an explanation.

Benefits for Customers

Open banking services are services that can provide various benefits for customers. The following is an explanation of some of the benefits of open banking for customer

1. Innovative Financial Services

Open banking API makes it easier for customers to get financial services more quickly and easily. With BRIAPI technology, customers can now enjoy a variety of the latest financial product innovations from BRI

For example, payment by virtual account that can be done in e-commerce applications. In addition, it can easily connext debit card in e-commerce applicationand also from fintech companies

That way, the ways you can choose make transactions are even more varied

2. Making Transactions Safer, Convenient, and Practical

Basically, using a virtual account and integrating a debit card with the application makes transactions even more practical. Plus, there's no need to worry because API technology is certainly very secure

The rason is because Indonesia's open banking services are directly supervised by the Finacial Services Authority (OJK) and also Bank Indonesia Third-party applications will only be able to acces your data in banking with the permission of the user concerned.

3. Can be Used Anytime and Anywhere

Furthermore, by integrating data between the application and the bank, users can make digital transactions regardless of time and place. Including to open a bank account. All kinds of digital transactions will feel easier. Open banking is a service that helps make this happen

Benefits for Partners

Apart from customers, other parties involved in open banking services are partners or owners of third-party applications. The benefits of open banking for parners or application developers are as follows

1. Various Payment Systems

The first benefit for open banking partners is the availability of more varied payments. That way, the partner's applicationlooks more attractive in the eyes of potential customers. If that's the case, transactions in the application will increas from time to time.

If transactions increas, then the source of income will also increase. That is one of the open bnaking functions that you can get as a partner.

2. Accessing Big Data to Be Able to Analize the Market

In addition to the benefits above, partners can also access big data availabe int he banking system. Of course, this can only be done with the permission of the customer concerned and only certain data is not sensitive. With this big data, you can more easily analyze the market

The proccess of market analysis is certainly very important. Because with this, partners can create more precise business strategy. The reason, parners already know consumer trends. Then, they can maximize digital marketing with the result of this analysis

3. High Level Security Standards

Then, for parners, the API can also improve application security standards. For example, the BRIAPI service has a high level of security standards. So, applications developed will also follow these security standards

Benefits for the Bank

In addition to customers and partners, fact API technology is also very useful for banks. The following are the benefits of open banking for the bank

1. Multiply Transactions

With an easy payment system in various applications, the automatic transaction rate will be even higher. That way, the income that the bank receives will also increase.

Not to mention, usally in certain applications there are admin fees thatcustomers need to pay to able to fill in balances or top up. This admin fee can later generate a sizable profit. So, this can be a new source of income

2. Attract New Customer Interest

Open banking is a door for banks to offer financial services and payment systems to more new customers. Especially in an era where digital transformation is becoming the new norm These various integrations need to be carried out to facilitate new habits and consumer behavior that prefer things that are practical and instant

3. Increasing Diversity or Variety of Banking Product

Then, creating services with this API technology also increases the variety of banking products. If before there were only cards, now there are many other product choices. Open banking service is one of the media that supports a variety of banking products in third-party applications, easy virtual account payments, and so on

4. Pampering the Customer

Furthermore, open banking services are a form of bank loyalty and concern for customers. This is because the bank wants to provide the best service. One of them is by pampering customers with open banking services with service providers from banks.

Through this, customers will feel safer, more comfortable, and make it easier for them to make various types of transactions in particular, when they are going to make payments in other applications, such as in e-commerce and also in fintech applications.

5. Realizing Banking as a Service (BaaS)

Supposing that from an open banking perspective BRIAPI is able to integrate business with BRI banking services such as BRIVA, Fund Transfer, or BRI Direct Debit, Banking as a Service (BaaS) is an advanced business model from API open banking. Open banking makes it easier to securely use and exchange customer data by third parties. Meanwhile, BaaS allows third parties to be able to access various financial service functions owned by banks through existing bank infrastructure.

One example of using API as BaaS is the BRI Healthcare Ecosystem, where BRI integrates its banking services via API into the Hospital Management Information System built by third parties, making SIMRS services far more end-to-end. This SIMRS can then be utilized by hospital management either in whole or in part.

For example, the availability of productive loans for doctors and employees, consumer loans for payments for patients, payment methods at hospital merchants, as well as to expedite hospital cash flow management with other stakeholders (such as insurance and distributors), and others.


Also read: Get to know the Open API Framework in Open Banking Initiatives in Indonesia


Open Banking Example

an example of open banking is the use of a bank card

An example of open banking is BRIAPI, an open banking service from bank BRI.

Until now, BRIAPI services have made more than 700 applications integrated with services from BRI banks. For example the Tokopedia, Shopee, OVO applications, and so on. So, customers and consumers can easily make transactions in these various applications.

The BRIAPI features that can be enjoyed are quite diverse. Starting from the debit card integration feature in the application, BRIVA as a fast and easy payment solution, and BRIZZI as e-money.

As one of the largest banks in Indonesia with more than 170 million customers throughout Indonesia, bank BRI always optimizes its services. That way, all parties will get a win-win solution and benefit from this API service from BRI bank.

Challenges of Open Banking in Indonesia

open banking challenge

Basically, the presence of open banking is welcomed by most people. This is because many people feel that open banking is a breath of fresh air in the financial sector. However, of course that doesn't mean open banking is without challenges at all.

One of the challenges of open banking in Indonesia is related to the security of customer data. Some people are still unsure about the security of implementing open banking.

Open banking is an opening between banks and digital partners. In the process of using it, customer data must remain safe from leaks. BRI bank answered this challenge by continuing to implement data security because BRI is also ISO 27001:2013 certified. In addition, BRI bank also follows Open API rules from Indonesian banks. This rule is called BI SNAP or Payment Open API National Standard.

The Future of Open Banking in Indonesia

Then, what about the future of open banking in Indonesia? Until now, open banking services continue to show positive trends from various aspects. Day by day, more and more banks, customers and partners are interested in joining this service.

People also don't need to worry about data security. This is because the API system from BRI is definitely safe because it is guaranteed by the BI SNAP guarantee. Apart from being safe, the open banking service is a very fast and practical service.

BRI's open API form is BRIAPI. BRIAPI has been integrated with various applications. Now, people can shop anywhere, pay electricity bills at any time, buy credit easily, and make various other transactions. Because now, it's enough to do all these transactions directly on the cellphone and in the required application.


So, what are you waiting for? You can register for open banking at BRIAPI right now. This is because open banking is the best solution for more practical banking services. You can make it easier for customers to complete transactions quickly.