Transition to the Era of Openness Open Banking and the Renaissance of Innovation in the Financial Industry

Open Banking, by addressing the limitations of traditional models, accelerates innovation in the financial industry. Traditional systems struggle with accessibility, personalization, and adapting to technological changes and customer expectations. Open Banking offers a solution by creating a secure platform for sharing customer financial data with authorized third parties via APIs, establishing a dynamic ecosystem of collaboration. This library-based research examines the impact of Open Banking on innovation in financial services using scholarly articles, international reports, and global statistical data. The study analyzes the core components of Open Banking: APIs, data, and key players. APIs enable secure and standardized data exchange, while data becomes the source for personalized services and trend analysis. Open Banking offers advantages including increased transparency and customer empowerment, facilitating innovation and competition, improving user experience, and reducing costs. For banks, it provides opportunities for business development and risk management, and FinTechs gain access to data with user consent. However, challenges such as data security and privacy, lack of API standardization, and resistance from traditional banks exist. Effective governance, including establishing a legal and regulatory framework, investing in technical infrastructure, and promoting a culture of innovation and collaboration, is crucial for overcoming these challenges. Open Banking presents both opportunities and challenges, requiring careful management and strategic implementation to achieve its full potential and transform the future of finance.

Transition to the Era of Openness Open Banking and the Renaissance of Innovation in the Financial Industry Keywords:

Open Banking , APIs , Data Sharing , Financial Innovation