Open Banking

Open banking allows banks, with consumers’ authorization, to give third-party services access to account data or the ability to initiate payments through standardized APIs. The sector is evolving from data sharing toward open finance and Pay by Bank, while regulators in the UK and U.S. continue to revise their frameworks. Companies are also combining open-banking data with AI, credit assessment and identity verification. Progress will shape financial data rights, payment costs, financial inclusion and real-time fraud risks, making it an important area to watch.