OnDemand

Open banking – revolution or risk?

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Banking & Financial Services

Open banking (ie, the authorised provision of consumer banking data to third parties through application programming interfaces) looks set to drive innovation and competition in the banking sector to the benefit of customers. However, the financial services industry should be aware of the potential risks associated with open banking, including market concentration, data compliance concerns, hacking and data breaches, risks to financial privacy and the resulting liability of banks.