definition of open banking

Introduction

Open banking is a transformative concept in the financial services industry, initially developed to foster competition by sharing client data among competitors with their consent. It has since evolved into a regulated practice in many jurisdictions, aiming to improve customer choices and experiences while enabling new entries into the financial sector.

Key Insights

Regulatory and Competitive Drivers:
- Open banking was initially driven by UK regulations to enhance competition by mandating the sharing of client data among banks with customer consent .
- It is now regulated in several key banking jurisdictions globally, including Europe, Asia, Africa, and the Americas.
Business Model and Technological Integration:
- Open banking involves a significant shift in business models, incorporating technological companies such as fintechs, and is seen as a critical enabler of new strategic dynamics in banking.
- It is characterized by specific security profiles, application interfaces, and guidelines aimed at improving customer choices and experiences.
Consumer Data Rights and Economic Value:
- Open banking highlights the economic value of personal data, giving consumers more control and agency over their financial data.
- It serves as a model for broader policy discussions on data rights and data protection.
Future of Open Finance:
- Open banking is considered the foundation for the future development of open finance, which extends the principles of data sharing and digitization to a broader financial ecosystem.

Conclusion

Open banking is a regulated financial ecosystem designed to enhance competition and improve customer experiences by sharing client data with consent. It integrates new business models and technological advancements, emphasizing consumer data rights and the economic value of personal data. As it continues to evolve, open banking is paving the way for the broader concept of open finance, which aims to further revolutionize the financial services industry.

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Definition of open banking

Summary

Introduction

Key Insights

Conclusion

Sources and full results

Open banking: A bibliometric analysis-driven definition

Open banking, driven by business model change, client data sharing, incorporation of technological companies, and regulation, is a critical enabler of a new strategic dynamic in the globalized banking sector.

Open Banking: What It Is, Where It’s at, and Where It’s Going

Open banking is a financial ecosystem that allows for more customer choices and experiences, while facilitating new entry into the financial business sector.

Open Banking

Open banking, a concept that allows banks to share customer data, is revolutionizing the financial sector and transforming consumer interactions with it.

The Journey to Open Finance: Learning from the Open Banking Movement

Open finance is a new frontier for the financial services industry, driven by datafication and digitisation, and is influenced by key issues like consumer data rights, reciprocity, and consumer education.

Research on the Development of Open Banking in China under the Background of Internet Finance

Open banking in China is driven by internet finance and FinTech, aiming to provide customers with "one-stop" integrated services by opening up data and business.

Open Banking & APIs for Transformation in Banking

Open banking and open APIs revolutionize the financial industry by enabling superior customer engagement, increased competition, and enhanced integration with internal and external partners.

The idea of open banking and the ways it can empower banking: Theoretical perspectives

Open banking can revolutionize the banking industry by focusing on customer needs and enhancing their financial lives through a shift in focus from banks to customers.

Trust Considerations in Open Banking

Open banking requires five trust considerations for success, including security protocols, application interfaces, and stakeholder guidelines, to enable easier money transfer and increased customer choices.

Open Banking: The Emergence of New Digital Business Models

Open banking has led to the creation of new digital business models in the UK financial sector, promoting innovation by building on existing retail activities, developing new digitally enabled activities, and leveraging open innovation activities.

Open banking and regulation: Please advise the government

A balanced Open Banking model, balancing consumer protection with innovation and streamlining banking services, can provide significant value to society.

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