South Africa has likewise joined the global community by contemplating and ideating on Open Banking . In the absence of any regulatory direction , the industry has adopted a market-driven approach . However , the banks are merely using this market-driven strategy as a front to monetise the APIs and add a new revenue stream . As the incumbents have chosen to operate in a partner-led mode , it is not opening the ecosystem for innovation .
Furthermore , South African banks are building these APIs adhering to their proprietary standards , some citing the
To drive Open Banking in South Africa , the impetus needs to be tri-directional – competition , regulator and consumers .
CMA ( UK ) and PSD2 ( EU ) as their guiding principles . Observing the pattern , it is evident that under the shadow of Open Banking that the South African banking industry is just strengthening its partner ecosystem .
Group ( IFWG ) has established an Open Banking Integration Working Group to assess the potential implications of open banking in South Africa and articulate policy imperatives . However , this requires further traction .
On the regulatory side , the Intergovernmental Fintech Working
Harsha Maloo , Head of Payments at Synthesis
No matter what strategies are used by these different countries , the fundamental objective remains the same . In essence , Open Banking seeks to permit the use of open APIs that would let third-party
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