Question

What is Open Banking? As it is a new challenge for international banks, how should banks prepare for the new challenge?

Answer 1

Open banking is a modern and sophisticated type of banking practice that will provide third party financial service providers an access to the consumer banking and they can access the financial data from the bank and other non banking financial institution through the use of application programming interfaces and this is becoming a major innovation that can reset the banking industry.

open banking system has the access to personal information to third party service provider and online service centre and customer is required to provide consent.

Banks should be preparing for new challenge by making more transparent and they should be trying to accommodate open banking practices into their own banking system in order to give customers the Liberty.

open banking is likely to modify the competitive landscape of financial services the bank will have to adjust to this new type of market and make flexible and not resisting the change will be helping the bank by making the more competitive and acquiring the larger market share through new age open banking and looking at it as an opportunity not a threat.