THE IMPACT OF OPEN BANKING ON TRADITIONAL BANKING INSTITUTIONS IN INDIA

Abstract

The banking and finance sector has started undergoing a lot of change since the start of the digital revolution and ‘Open Banking’ is one such disruption that is poised to change banking forever.

Open Banking is a mandate that requires banks to share certain account and transaction details with third parties through Application Programming Interfaces (APIs). The APIs allow software from different companies to have access to certain information from another. Open Banking also allows banks to quickly offer tailor-made products to their customers, particularly in the case of payment offerings.