Bangladesh plans to introduce open banking system for faster financial solutions

Highlights

• BB plans to introduce an open banking system by June 2026
• Customers will be able to access multiple banks' services via fintechs
• A working committee will be formed by Dec to guide implementation
• Officials say the system will enable faster loans
• Models from India and Singapore are being studied for adoption

Bangladesh is set to introduce an open banking system, mirroring practices in technologically advanced countries, which promises greater transparency and innovation in the financial sector.

Explaining the system, a senior official said a customer holding an account with one bank could receive services from another bank, based on their performance history, through a third-party fintech.

For instance, a Citi Bank account holder could access services offered by Eastern Bank, which would evaluate the customer's performance via a third-party provider before providing the service.

The system will let customers, with their consent, share financial data with third‑party fintechs or apps, providing a single platform to access loans, bill payments, spending analysis, and investment information.

This approach will enhance convenience and financial insight, leading to improved services and lower costs. Real‑time data will enable faster loan approvals and personalised financial solutions, officials said.

"Open banking could be implemented in Bangladesh very soon with close cooperation between banks, fintechs, and regulators," Sharafat Ullah Khan, director of Bangladesh Bank's Payments Systems Department, said at the 5th Bangladesh FinTech Summit in Dhaka yesterday. 

"It will be crucial for the growth of private credit bureaus, payment initiation services, and digital banks," he said at the summit's discussion on "Open Banking: Redefining Financial Services for the Next Decade". The event was organised by Mastercard and Prime Bank.

Several officials at Bangladesh Bank told The Business Standard that the central bank plans to issue Open Banking Guidelines and standardised Application Programming Interface (API) protocols by June 2026. A working committee is expected to be formed by December 2025 to guide the implementation process.

At the event, Humaira Azam, managing director of LankaBangla Finance, said traditional banking has long operated within limited structures. 

"Once open banking is implemented, banks will be able to work with third-party fintechs to enhance customer service. If we invest in channels and employee training, we can achieve international standards," she added.

Arfan Ali, former managing director of Bank Asia, noted that open banking is already part of regular banking in Europe, Australia, and Canada, allowing customers full control over their data. 

"Customers can consolidate information from multiple banks onto one platform. For successful implementation in Bangladesh, customer consent, cyber security, and data protection laws must be ensured," he said. 

Sopnendu Mohanty, co-founder and CEO of the Global Finance & Technology Network (GFTN), said the term "open" in open banking can unsettle stakeholders, and countries adopt different models.

The UK mandates open data through common APIs to boost competition, India uses state-backed account aggregators to advance financial inclusion, while Singapore follows a hybrid, innovation-driven, market-led approach, guided by its central bank and principles of fair and equitable data sharing.

Global examples

Singapore has introduced open banking under the supervision of the Monetary Authority of Singapore (MAS), which has prioritised collaboration between banks and fintechs from the start. MAS created the "API Exchange (APIX)" platform, enabling approved institutions to share customer data securely.

Singapore's model is internationally recognised as both government-regulated and innovation-friendly.

India's open banking operates under the Reserve Bank of India-approved Account Aggregator (AA) framework. With customer consent, approved financial institutions – including banks, NBFIs, and insurance companies – can share and access data.

India's model is considered one of the world's most robust and regulated open banking systems.

In Bangladesh, the central bank is currently drafting policies for digital banks, payment service providers (PSPs), payment system operators (PSOs), and e-money issuers. 

Experts said these initiatives will pave the way for open banking. Existing platforms such as the Interoperable Digital Transaction Platform (IDTP) and Bangla QR have already established connectivity between banks and fintechs.

However, they said it increases data privacy and security risks as more third parties gain access. Integration challenges, legacy systems, and inconsistent regulations can complicate adoption. Weak transparency or consent mechanisms may reduce consumer trust.