Open banking is redefining the way banks engage with their customers in global markets. Primary divers are legislation – such as PSD2 – and technology, mainly open APIs and real-time payments. All open banking initiatives seek to drive entrepreneurship and competition.
In practice, open banking is largely about customer data. In an open-banking environment, banks must share customer data with third parties as requested by customers.
Open banking is the most disruptive event in banking for centuries. It is redefining the bank value chain, challenging the way banks interface with their customers and changing how they compete with each other.