JAPAN
Japan's journey into Open Banking was initiated by the revision of the Banking Act in June 2018,
Which mandated Japanese banks to develop open APIs within two years. The Financial Services Agency (FSA) introduced policies to enhance planning capabilities, customer services, and transparency in bank initiatives.
Open Banking in Japan has created opportunities for both domestic and international players, but regulatory compliance is essential. Major Japanese banks and local institutions have actively embraced Open Banking, forming partnerships and transitioning to digital banking services. Challenges persist, including negotiations between banks and FinTechs and the need for stronger incentives for data providers.
Despite challenges, Japan's Open Banking evolution promises transformative changes in the banking sector, fostering innovation and collaboration in the financial industry.
Updated: November 2023
