OPEN BANKING: ADVANTAGES, POSSIBILITIES AND FEASIBILITY OF IMPLEMENTATION

Abstract

Global digitalization encourages all spheres to introduce new, sometimes even previously unseen, technologies. Thus, the banking sector was faced with the possibility of transition to a new stage with the introduction of unprecedented openness of financial data of all users – the so-called open banking system. World banking in terms of modernity may need to expand its capabilities and improve the very concept of conducting any financial transactions. In the world of technology, sooner or later it will be necessary to revise the existing views on how this or that field should function. The concept of open banking offers its version of simplifying the use of operations related to money and improving communication between the client and the provider of financial services. The article examines the concept of open banking and its influence, the advantages of this concept, analyzes research on the topic of its popularization and real experience of exploitation around the world. Many countries have already begun to implement the principle of openness of financial data, and some are already actively using the privileges of this concept, despite the shortcomings, which will also be discussed in this article. The expediency of the transition to open banking is the main question facing the governments of countries thinking about updating their banking systems. The article also provides statistical data from various sources to support some points of view and to understand the overall picture. Attention is also paid to the objective opportunities that open banking can potentially open, and to the biggest concerns of consumers related to the openness of financial data.