How does open banking impact global financial services in 2024?.

Open banking refers to the practice where banks and financial institutions allow third-party developers to access their data through APIs. This approach promotes competition and innovation, leading to better products and services for consumers.

Key Facts

• 2018: PSD2 regulation in Europe mandates banks to provide third-party access.
• 2022: Over 3,000 open banking services were reported globally.
• 2024: The global open banking market is expected to reach $43 billion.
• Customer Trust: 80% of consumers express willingness to share data for better services.

Examples or Use Cases

• Payment Initiation Services: Consumers can make payments directly from their bank accounts without using traditional card networks.
• Personal Finance Management Tools: Apps that aggregate data from various accounts to provide users with insights and budgeting tools.

FAQs

What is open banking? Open banking allows secure access to bank data for third-party applications.

Is open banking safe? Yes, as it operates under strict regulations to protect consumer data.