Bank Negara Malaysia has released a proposed guideline for open APIs in Malaysia and is currently seeking feedback from the public. Three areas of focus for the open APIs have been established as: automobile insurance, credit cards and SME financing. The main goals of this initiative are to improve access to finance (especially for SMEs), liberalize automobile insurance and equalize the playing field for FinTech companies to push innovation into the financial sector.
The introduction of open APIs would help break banks’ monopoly on consumer data and give more power to consumers to decide what services they find valuable. While some experts are concerned that such a move will severely hinder banks and their ability to effectively work with consumers, others believe this could lead to a new era of innovation in Malaysia’s financial sector.