Open banking: Impact of the adoption of public APIs on the financial services industry.
The promise in application of open APIs is to create efficiencies and improvements for end-customers, as well as harnessing the capability and creativity that third parties can contribute to the realm of financial services.
According to the research, the EU’s revised Payment Services Directive (PSD2) is anticipated to further open up the European payments market and encourage competition, particularly in the areas of payments. Likewise the UK Government, keen to create an initiative of data sharing and open data in banking, requested the creation of the Open Banking Working Group (OBWG) in 2015. The aim of the working group – a collective of banking, open data and FinTech professionals – is to develop a framework for adopting an open API standard across banking and explore how open banking will impact consumers, regulators and industry. What will be the key challenges and opportunities surrounding the use of open APIs?
The paper, “The API Economy and Digital Transformation in Financial Services: The case of Open Banking” looks at the possible impact of the adoption of public application programming interfaces (APIs) on the financial services industry and aims to provide an insightful resource for financial institutions, fintech startups, technology companies, and regulators alike.
- Warwick Business School