Why 52.9% of fintech firms back open banking growth

Respondents expect wider API ecosystems to emerge over the next 2 to 3 years.

Over half of financial technology (fintech) firms expressed a positive outlook on the growth of open banking and embedded finance in Asia, whilst 37.6% remained neutral and 9.4% held a negative view.

Open banking allows customers to securely share financial data with third-party providers, enabling financial services to be integrated directly into non-financial platforms. 

The trend is linked to the growth of embedded finance, where banking and insurance products are offered within digital platforms such as travel, retail, and ride-hailing applications, the report 2026: The Future of Fintech in APAC revealed.

Regulators across the region are advancing open banking initiatives. 

In Malaysia, Bank Negara Malaysia and PayNet are developing an open banking framework with a proposed exposure draft on consent-driven data sharing. 

Indonesia’s central bank granted Brankas the country’s first open banking licence in April 2024.

Industry participants are already using embedded finance models to integrate insurance and payment services into digital platforms. 

One example is the partnership between AirAsia MOVE and Tune Protect, where travellers booking flights can purchase travel insurance products within the app through API-driven data sharing.

Banks are also expanding cross-border payment and financial services through open APIs. 

Customers of Bank Mandiri in Indonesia, for example, can send international payments through the bank’s app using infrastructure powered by Wise Platform, allowing banks to integrate cross-border payment services directly into their own systems.

Despite growing interest, challenges remain around implementation and regulation. 

Industry participants cited the lack of standardised regulations across markets as a barrier to wider adoption. 

Concerns over competitiveness and customer data sharing also continue to slow progress amongst some financial institutions.

Respondents said banks are expected to gradually shift from closed partnership models towards broader open API ecosystems over the next two to three years, combining embedded finance strategies with open banking services.