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Open Finance: The Korean Experience and Opportunities and Challenges for the East Asia and Pacific Region

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dc.contributor.authorWorld Bank
dc.date.accessioned2024-05-28T16:01:40Z
dc.date.available2024-05-28T16:01:40Z
dc.date.issued2024-05-28
dc.description.abstractThe importance of data in the economy is exponentially growing. Although the amount of data generated and analyzed in the economy has always grown, the recent growth in data generation and the advancements of analytic technology are much faster than in the past. Open data, which grants the right to data portability to data subjects, is becoming a popular policy option to enhance the efficient use of data in society and reduce privacy costs. The financial industry is one of the leading sectors implementing the right to data portability through open banking and open finance initiatives. Open finance is a natural extension of open banking to sharing customer-permissioned data by financial institutions with third parties. The policy objectives for open finance vary by country. Financial innovation is among the first policy objectives. The Republic of Korea set innovation in financial services, especially in payments and settlements, as the policy objective of open banking. Another objective is competition through financial innovation and the emergence of neo financial institutions such as Fintechs and the big techs. Strengthening consumers’ data-related rights has been a policy objective in many countries. Open finance in the Republic of Korea and General Data Protection Regulation (GDPR) in the European Union (EU) are notable examples. Finally, in some cases, enhancing consumer benefits, through financial innovation and the promotion of competition, has been set as a policy objective. Open banking and open finance will provide more opportunities and challenges to achieve those policy objectives than financial innovation in the past. First, open banking and open finance allow the consent-based sharing of a complete footprint of data rather than specific ones like delinquencies. This sharing results in a significant improvement in the quality and entirety of data sharing. Second, open banking and open finance enable third parties, often not financial companies, to build business models as marketing platforms, advisers, intermediaries, or agents for financial services.en
dc.identifierhttp://documents.worldbank.org/curated/en/099651305202495523/IDU1234df1fd16013143ba187e511981565719ea
dc.identifier.doi10.1596/41600
dc.identifier.urihttps://hdl.handle.net/10986/41600
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC: World Bank
dc.rightsCC BY-NC 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by-nc/3.0/igo
dc.subjectOPEN BANKING
dc.subjectLAW
dc.subjectCENTRALIZED APPROACH
dc.subjectINTEROPERABILITY
dc.subjectPHASE-IN APPROACH
dc.subjectINNOVATION
dc.subjectSDG 9
dc.titleOpen Financeen
dc.title.subtitleThe Korean Experience and Opportunities and Challenges for the East Asia and Pacific Regionen
dc.typeReport
dspace.entity.typePublication
okr.crossref.titleOpen Finance: The Korean Experience and Opportunities and Challenges for the East Asia and Pacific Region
okr.date.disclosure2024-05-28
okr.date.lastmodified2024-05-27T00:00:00Zen
okr.doctypeEconomic & Sector Work
okr.doctypeEconomic & Sector Work::Other Financial Sector Study
okr.docurlhttp://documents.worldbank.org/curated/en/099651305202495523/IDU1234df1fd16013143ba187e511981565719ea
okr.guid099651305202495523
okr.identifier.docmidIDU-234df1fd-6013-43ba-87e5-1981565719ea
okr.identifier.doihttps://doi.org/10.1596/41600
okr.identifier.externaldocumentum34321122
okr.identifier.internaldocumentum34321122
okr.identifier.report190416
okr.import.id4264
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099651305202495523/pdf/IDU1234df1fd16013143ba187e511981565719ea.pdfen
okr.region.administrativeEast Asia and Pacific
okr.region.countryKorea, Republic of
okr.topicFinance and Financial Sector Development::Banks & Banking Reform
okr.topicFinance and Financial Sector Development::Financial Regulation & Supervision
okr.topicScience and Technology Development::Technology Innovation
okr.unitEFI-EAP-FCI-Finance-1 (EEAF1)
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