Open Banking: Opportunities and Risks

Open banking is a framework where consumers and businesses can share their banking data with third-party providers through secure channels. Starting in the United Kingdom, open banking is on the rise in many countries. Thanks to open banking, consumers and businesses can access innovative financial services and products easily and securely. However, open banking also imposes risks and challenges on consumers, financial institutions, and regulators. This chapter gives an accessible overview of open banking, describes its status around the world, and discusses lessons learned from early implementations of open banking.KeywordsOpen bankingApplication programming interface (API)Screen scrapingData sharingPrivacyConsumer rights