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After digital platforms have become successful in the information technology (IT) industry, incumbents from traditional industries increasingly implement digital platform strategies. However, there is mixed evidence on whether these incumbents benefit from digital platform strategies. To provide systematic insights, we focus on the banking industry. With the emergence of open banking, banks have begun implementing digital platforms to unlock the innovative power of third-party developers. We conducted an event study based on the announcement of digital platform strategies in a global sample of 165 banks. We show that, on average, investors react positively to the announcements. Contrary to our expectations, this effect is more substantial for banks from emerging markets than those from developed markets. Prior artificial intelligence (AI) orientation only partly contributes to investors' favorable perception of a digital platform strategy. These results point to the complex interplay of AI orientation and digital platform strategies, yielding questions for future research. [ABSTRACT FROM AUTHOR]

Open banking is an emerging business model that is representative of FinTech. To explore whether inclusive FinTech can improve bank performance and identify the underlying mechanisms by which this occurs, we investigate a sample of Chinese commercial banks involved in open banking during 2011–2020. The results show that inclusive FinTech can improve bank performance by improving the bank's lending rate and liability structure, and that this positive effect is more pronounced in national and rural banks. The results indicate that inclusive FinTech has the greatest impact among banks serving the largest population and those who are excluded from the traditional financial system, and that financial inclusion does not detract from bank performance. However, the results do not provide evidence that inclusive FinTech improves bank performance by reducing risk-taking, suggesting a greater need for inclusive FinTech to focus on risk management. This study adds empirical evidence regarding the role of inclusive FinTech in banks. To promote inclusive FinTech and bank performance, developing economies like China should strengthen digital financial innovations, focus on risk management, and promote cooperation under the open finance framework. [ABSTRACT FROM AUTHOR]

Open banking is a customer consent-driven data-sharing framework to maintain interoperability among financial and non-financial institutions through secure application programming interfaces. Traditional retail banks are losing their competitive edge against digital banks, FinTech, and BigTech firms due to a higher outflow of customer account data than inflow. These firms capitalize on open banking data to launch innovative products and introduce "ready-to-deploy" Banking-as-a-Service platforms for end-to-end banking operations without the need to build full-scale infrastructures. Therefore, banks must reshape data-driven strategies to stay competitive. This research proposes a decision-support tool to select optimal digital strategies using the Strategic Value Index (SVI), a metric derived from analyzing multiple strategic objectives of bank stakeholders. The SVI minimizes implementation time and costs while maximizing operational action importance to a balanced digital strategy that combines both in-house and outsourced technological developments. The importance of operational action is quantified using evidential reasoning with fuzzy logic to address the challenge of aggregating incomplete and ambiguous banking data and assessments from multiple stakeholders. The theoretical approach is validated through a real application in a Latin American bank, and its findings are globally transferable. Cost and time data were sourced from public repositories, as made available accessible through government-mandated disclosures. The sensitivity analysis revealed that hybrid in-house and outsourced development is more flexible in meeting tight timelines and budget constraints. The combined approach is more cost-effective, time-efficient, and aligned with the internal needs of banks compared to either entirely in-house or fully outsourced models. [ABSTRACT FROM AUTHOR]

A framework empowering third-party providers to access individual financial data has revolutionized the financial services landscape. Despite the user-centric nature of FinTech solutions, research on post-adoption behavior remains relatively scarce. Given the pivotal role of FinTech in the modern financial industry, understanding the factors driving sustained adoption and continued usage is crucial. This study aims to explore the key determinants influencing users' decisions to remain engaged with Open Banking solutions. We propose a model examining the impacts of various factors on user satisfaction and their intention to continue using Open Banking. Partial least squares structural equation modeling (PLS-SEM) was employed to validate this model. Our findings reveal that user satisfaction with the usage experience is the sole predictor of continued use intention, explaining 62% of the variance in continuance use intention (R2 = 0.62). Additionally, user satisfaction is influenced by perceived usefulness (β = 0.33, p < 0.001), trust (β = 0.24, p = 0.003), and convenience (β = 0.25, p = 0.006), accounting for 70.5% of the variance in satisfaction (R2 = 0.705). The practical implications of this study suggest that Open Banking providers should prioritize enhancing user satisfaction by improving the perceived usefulness and convenience of their applications while fostering trust to maintain user engagement. Furthermore, our findings emphasize that convenience and trust are critical levers that Open Banking providers can utilize to ensure long-term customer loyalty and adoption, particularly in developing economies. [ABSTRACT FROM AUTHOR]

The high level of competition in the banking and non-bank industries makes banks have to continue to adapt in business to provide products and services to their consumers. Although the company recorded an encouraging performance and was able to maintain its position as a market leader, Bank BRI needed a business strategy to remain leading in revenue growth. This research aims to design a business dominance strategy and market share in the banking industry at BRI banks through a Dual Business approach that integrates ecosystem services (Hyperlocal Ecosystem) to increase competitiveness. The method used in this case study is qualitative descriptive with observation and in-depth interviews. The researcher conducted internal and external influence analysis using Porter's Five Forces Approach, Strategic Group Analysis, Value Chain Analysis, and Building Block Analysis to determine the positioning. In this study, the presence of a community-based business framework (hyperlocal business) is expected to add valueadded banking services and increase revenue for BRI banks to be able to compete in the open banking industry. Based on the analysis of building blocks, the competitive strategy carried out by Bank BRI is differentiation where Bank BRI has the advantage of customer base as the main raw material in the community map, product quality, and innovation that cannot be imitated by its competitors. [ABSTRACT FROM AUTHOR]

Abstract Open banking is a customer consent-driven data-sharing framework to maintain interoperability among financial and non-financial institutions through secure application programming interfaces. Traditional retail banks are losing their competitive edge against digital banks, FinTech, and BigTech firms due to a higher outflow of customer account data than inflow. These firms capitalize on open banking data to launch innovative products and introduce “ready-to-deploy” Banking-as-a-Service platforms for end-to-end banking operations without the need to build full-scale infrastructures. Therefore, banks must reshape data-driven strategies to stay competitive. This research proposes a decision-support tool to select optimal digital strategies using the Strategic Value Index (SVI), a metric derived from analyzing multiple strategic objectives of bank stakeholders. The SVI minimizes implementation time and costs while maximizing operational action importance to a balanced digital strategy that combines both in-house and outsourced technological developments. The importance of operational action is quantified using evidential reasoning with fuzzy logic to address the challenge of aggregating incomplete and ambiguous banking data and assessments from multiple stakeholders. The theoretical approach is validated through a real application in a Latin American bank, and its findings are globally transferable. Cost and time data were sourced from public repositories, as made available accessible through government-mandated disclosures. The sensitivity analysis revealed that hybrid in-house and outsourced development is more flexible in meeting tight timelines and budget constraints. The combined approach is more cost-effective, time-efficient, and aligned with the internal needs of banks compared to either entirely in-house or fully outsourced models.

Abstract Open banking is an emerging business model that is representative of FinTech. To explore whether inclusive FinTech can improve bank performance and identify the underlying mechanisms by which this occurs, we investigate a sample of Chinese commercial banks involved in open banking during 2011–2020. The results show that inclusive FinTech can improve bank performance by improving the bank’s lending rate and liability structure, and that this positive effect is more pronounced in national and rural banks. The results indicate that inclusive FinTech has the greatest impact among banks serving the largest population and those who are excluded from the traditional financial system, and that financial inclusion does not detract from bank performance. However, the results do not provide evidence that inclusive FinTech improves bank performance by reducing risk-taking, suggesting a greater need for inclusive FinTech to focus on risk management. This study adds empirical evidence regarding the role of inclusive FinTech in banks. To promote inclusive FinTech and bank performance, developing economies like China should strengthen digital financial innovations, focus on risk management, and promote cooperation under the open finance framework.

This article analyzes the feasibility of incorporating reciprocal financial data into Indonesia's open banking system by studying its implementation in the United Kingdom and other countries. The methodology employed is conceptual, statutory, and comparative legal, utilizing data gathered from secondary legal sources. The study discovered that reciprocal data finance could be a supplementary measure to enhance data portability rights. This approach enables banks to provide compensation for access to account data, utilizing the concept of "paying by data". Indonesia should contemplate the adoption of data reciprocity alongside the portability rights outlined in Article 13 of the PDP Law. Subsequently, it can be configured inside the SNAP settings. Before proceeding with this development, it is crucial to establish Open banking in Indonesia by effectively balancing the goals of personal data rights and market competition. This circumstance will encourage Bank Indonesia to collaborate with other regulatory bodies, such as competition authorities, data protection regulators, and sector regulators. Despite potential differences in their objectives, this collaboration is necessary as reciprocal data portability initiatives may involve multiple regulatory domains.

The European Commission (EC) is advancing the data economy through a series of regulatory reforms aimed at giving customers control of their data and fostering innovation in third-party contexts. While the costs of developing existing banking infrastructures and creating open application programming interfaces have largely fallen on banks, third-party service providers have benefitted from new revenue streams and increased customer relevance. As a result, banks risk disintermediation with some customer segments. The impending Financial Data Access (FiDA) regulation is set to expand these dynamics by extending the range of financial data made accessible for third parties. Simultaneously, the entry into force of the Electronic Identification Authentication and Trust Services 2.0 (eIDAS2) introduces a digital wallet that allows consumers and businesses to share their identity credentials in online customer journeys, offering banks the potential to engage more effectively in the data economy. The key question is whether the new reforms will encourage banks to seek opportunities beyond compliance; more so than with the Revised Payment Services Directive (PSD2) and open banking. This paper analyses the opportunities arising from FiDA, eIDAS2 and the Data Acts, providing strategic considerations for banks navigating the data economy. It emphasises that banks are ideally positioned to become data custodians by offering customers tools for the secure and reliable exchange of data-driven digital transactions across all sectors. Ultimately, this approach will unlock new value and enhance the relevance of banks in the data economy. [ABSTRACT FROM AUTHOR]

In this paper, we examine the relationship between open banking and tax evasion. As the open banking literature is still evolving, we try to systematically analyze the literature on conventional banking and tax evasion and then extend the discussion in the context of open banking. The popularity of open baking recently raises a question about its relationship with tax evasion. Digital banking and digital taxation contributed positively to mitigating tax evasion in the context of conventional banking. However, in open banking, the customers can decide to what extent they will share any transaction-related data with their bank, while they can also choose to complete direct transactions with third parties. This creates a new challenge in relation to the mitigation of tax evasion, which is the focus of this paper. Due to lack of granular empirical data, we conduct a systematic literature review and a bibliometric analysis to track the development of the relevant academic debates and identify the arguments that have been presented in relation to this topic. This approach is recognized as well suited for emerging topics in finance research, particularly when data are scarce, as evidenced by studies on COVID-19 and biodiversity. We find that the gaps of the current regulatory framework, at both the national and supranational level, have created challenges and uncertainties at multiple levels. Nonetheless, the findings of the study suggest future research directions and offer valuable guidelines for regulators in utilizing open banking. [ABSTRACT FROM AUTHOR]

Fintech facilitates financial inclusion by introducing new sustainable and accessible business models in developing countries. Open banking API technology is used by various fintech businesses in both developing and developed countries, with varying effects on financial markets. It changes the financial market distribution structure by separating financial product manufacturing and distribution and intensifying competition between traditional financial institutions and fintech companies. Fintech companies innovate by using this tool to create new business models. In December 2019, Korea established a standardized "open banking API platform", sharing an interbank payment network with fintech companies. It has since shown explosive growth, surpassing the trading volume of the UK, the country that introduced open banking APIs for the first time. This study analyzes new business models fintech companies created using this API technology. Based on existing literature, statistics from the platform operator (the Korea Financial Telecommunications and Clearings Institute), and investigations of 30 Korean fintech mobile applications, this study analyzes new fintech business models that provide financial services using this platform. These companies create sustainable business models by combining multiple APIs. Four representative business models (simple funds transfer, simple payment, cross-border remittance, and asset management) are analyzed to reveal how fintech companies create business models with open APIs. [ABSTRACT FROM AUTHOR]

The increasing sophistication of cybersecurity threats poses substantial risks to financial systems worldwide, making effective risk management essential. This study explores the integration of Artificial Intelligence (AI) in enhancing cybersecurity risk management within financial institutions. AI-driven tools offer advanced capabilities for identifying, predicting, and mitigating cyber threats, leveraging machine learning algorithms, neural networks, and predictive analytics to detect anomalies and potential breaches in real-time. By automating risk assessment processes, AI systems enhance accuracy in threat detection, reduce response times, and minimize human error, thus strengthening overall cybersecurity resilience. This research highlights key AI-powered techniques such as anomaly detection, behavioral analysis, and predictive threat modeling, which collectively offer financial systems a proactive defense mechanism against cyber-attacks. Furthermore, challenges surrounding AI implementation, including data privacy concerns, regulatory compliance, and ethical considerations, are examined. Through a comprehensive analysis of AI applications in risk management, this paper underscores the transformative role of AI in creating secure, resilient financial ecosystems and presents a framework for financial institutions to adopt AI-driven cybersecurity strategies effectively. Digital innovations hold vast potential to expand financial inclusion, improve efficiency, mitigate risks, and meet customer demands in a dynamic digital economy. However, concerted efforts are needed to address cyber security vulnerabilities, build robust digital infrastructure, up skill workforce capabilities, and design ethical frameworks governing data use. India's digital finance transformation will have far-reaching implications for competitiveness, profitability, and stability of the banking sector. [ABSTRACT FROM AUTHOR]

The promise of Open Banking (OB), as implemented in the UK, has been that consumers are no longer passive data producers but can also use and derive value from their personal data. OB has been applied predominantly to financial decision-making, payments and borrowing, and most of the existent literature has focused on its adoption in financial services. In this article, we examine its off-label adoption in tenant referencing, a sector rather neglected and that raises specific questions of distribution to essential goods. We draw on qualitative research from a research project examining algorithmic risk profiling in housing, comprising in-depth interviews with landlords, letting agents, tenants, referencing companies and other stakeholders in the private rented sector (PRS). Taking into account simultaneously consumers and professionals' perspectives, we argue that OB adoption in tenant referencing is a calculative practice embraced due to offering a more streamlined application process, having a reassuring interface design and institutional validation. Such technical and social elements overlap on the specific power relations of the rental market that make in some situations OB less as an 'opt-in' option and more like a default setting when tenants feel that they do not have too much control over what data they want to share. [ABSTRACT FROM AUTHOR]

Contexto: o Open Banking consiste em um mecanismo regulatório que, dentre outros objetivos, visa endereçar o problema histórico de alta concentração de poder econômico no setor financeiro, a partir do compartilhamento de dados entre instituições financeiras. No Brasil, o modelo foi denominado de Sistema Financeiro Aberto ou Open Finance e implementado pelas autoridades reguladoras do Sistema Financeiro Nacional, mas há décadas os altos níveis de concentração no setor financeiro também são uma preocupação da autoridade de defesa da concorrência brasileira. Objetivo: diante da complementaridade de competências entre as autoridades de regulação setorial e antitruste em relação ao setor financeiro, o artigo irá investigar possíveis formas de interação da atuação do Conselho Administrativo de Defesa Econômica (Cade) e da aplicação da Lei nº 12.529/2011 no âmbito do Sistema Financeiro Aberto brasileiro. Ainda que pareça claro aos especialistas que o tema pode ser de competência do Cade, a importância de se investigar o tema é evidente diante da insegurança jurídica decorrente de potenciais situações contraditórias e inconciliáveis entre a atuação do ente regulador e a da autoridade antitruste. Método: o artigo foi elaborado a partir de pesquisa bibliográfica, incluindo documentos elaborados pelas autoridades, e de análise da legislação, sendo também abordados casos concretos no Cade relacionados ao tema, com conclusões a partir do método de abordagem dedutivo. Conclusões: o artigo conclui que a implementação do Open Finance no Brasil, caracterizada como autorregulação regulada, apresenta desafios e particularidades que demandam uma articulação cuidadosa entre o Banco Central e o Cade. Identificou-se a competência concorrente e complementar das autoridades para atuação em relação ao Sistema Financeiro Aberto, bem como foram identificadas, de modo não exaustivo, possíveis interações da atuação do Cade no âmbito do controle preventivo, repressivo e na função de advocacia da concorrência, a partir da análise de casos concretos. Ainda assim, foi pontuada a possibilidade de conflitos de competência insuperáveis na aplicação das normas, situação que demandará a intervenção do Poder Judiciário.

No matter how good a smart device may be, it remains useless outside the context of a digital ecosystem. Internet of Things (IoT) environments are possible as long as services and products can interconnect smoothly and exchange data in real time. Therefore, interoperability ranks high in global policy agendas, with the promise of bringing an end to network effects slanted in favour of ecosystem orchestrators. However, recent regulatory initiatives introducing interoperability obligations risk falling short of their intent or even risk generating unintended consequences in the absence of a coherent approach to standardisation. Against this backdrop, focusing on the UK Open Banking experience, this article makes a proposal for workable interoperability in IoT ecosystems aimed at ensuring market contestability without undermining incentives to innovate. [ABSTRACT FROM AUTHOR]

This article analyses three routes for the formation of market-opening rules: competition enforcement, legislative rulemaking, and market investigation. Using examples and case studies related to facilitating market access in banking and payment systems, we illustrate essential features and limitations of the different modes of rulemaking. The interrelation between them is explored, emphasizing the merits of having them available in parallel. [ABSTRACT FROM AUTHOR]

In recent years, technological advances have led to dramatic changes in the financial ecosystem and momentum in the traditional structure of the banking industry and the need to review the traditional business models of banks. Therefore, the current study has been conducted with a qualitative-quantitative approach to explain the open banking business model in the Middle East Bank. The statistical population of this research in the qualitative part consists of middle managers of various branches of the Middle East Bank active in the field of open banking and managers of fin-techs whose statistical sample size was equal to 10 people. Also, the quantitative population of this study is the managers and employees and natural and legal customers of 16 branches of the Middle East Bank in Tehran, which was determined based on Cochran's formula equal to 370 people. The data collection tool in this study is semi-structured in-depth qualitative interviews, the data of which were analyzed using the soft systems research method, and in the quantitative part, the data were collected through a researcher-made questionnaire were collected and then analyzed by using confirmatory factor analysis and structural equations. Based on this, 94 codes extracted from interviews with experts, were classified into 74 concepts, 16 subcategories and 3 categories of customer-oriented banking, API management and regulatory developments. Quantitative findings also confirm the positive and significant impact of these three components on the open banking business model of the Middle East Bank. [ABSTRACT FROM AUTHOR]

Open banking is an emerging and evolving concept, it brings both opportunities and challenges to banks. Despite its anticipated transformative role in changing the financial services landscape and delivering superior value to the customers, the concept has been under-examined in the academic community. This study synthesizes existing research on Open Banking and its emerging role. It employs scientometric technique with underlying statistical analysis tools to review the existing literature in this field. The data from 415 documents was scrutinized for this study. We analysed the existing literature to present to research community the following aspects; the research trends, key themes, related keywords and future research directions. The scientometric analysis revealed aspects related to authors' analysis, source analysis, author co-operation network across countries, keyword analysis and topic modeling. This paper contributes to literature by collating and analysing the existing research available in the field of open banking. [ABSTRACT FROM AUTHOR]

Banks are traditionally seen as providers of financial services such as deposit-taking, lending, and payment services. In recent years, banks expand their range of services to include non-banking services far beyond that to encompass an ever-widening scope of conveniences for the customer. Certain banks are gradually going beyond traditional banking engaging in services related to everyday lifestyle activities, mobility, entertainment, dining, and e-commerce, stepping on the opportunities provided by the digitalization and in collaboration with third parties. The observed trend is driven by banks' ambitions to attract and engage customers in a comprehensive way and to create stickiness to their digital platforms. This strategy is an answer to the raising competition from fintech companies, which disrupt the traditional way of doing banking incorporating a holistic approach towards the customer needs. This article gives an overview of selected examples of banks which have gone "beyond banking" and underlines this competitive strategy as one of the factors for their market performance. Those examples are used to define a high-level benchmark framework and to prove the main research hypothesis that the provision of non-traditional banking services by banks and their participation in ecosystem partnerships represents an effective business development strategy to remain competitive and to attract and retain customers. The article reviews the current state of deployment of the "going beyond banking" strategy by traditional banks on the Bulgarian banking market and demonstrates clearly that the biggest banks on the market are those with the highest level of GBB deployment strategy. [ABSTRACT FROM AUTHOR]

In this paper, we examine the relationship between open banking and tax evasion. As the open banking literature is still evolving, we try to systematically analyze the literature on conventional banking and tax evasion and then extend the discussion in the context of open banking. The popularity of open baking recently raises a question about its relationship with tax evasion. Digital banking and digital taxation contributed positively to mitigating tax evasion in the context of conventional banking. However, in open banking, the customers can decide to what extent they will share any transaction-related data with their bank, while they can also choose to complete direct transactions with third parties. This creates a new challenge in relation to the mitigation of tax evasion, which is the focus of this paper. Due to lack of granular empirical data, we conduct a systematic literature review and a bibliometric analysis to track the development of the relevant academic debates and identify the arguments that have been presented in relation to this topic. This approach is recognized as well suited for emerging topics in finance research, particularly when data are scarce, as evidenced by studies on COVID-19 and biodiversity. We find that the gaps of the current regulatory framework, at both the national and supranational level, have created challenges and uncertainties at multiple levels. Nonetheless, the findings of the study suggest future research directions and offer valuable guidelines for regulators in utilizing open banking.

Abstract In the European Union (EU), the revised Payment Services Directive (PSD2) aims to provide more convenient and customized financial products through open banking (OB) platforms. However, little attention has been paid to the role of OB in improving the financial well-being of the growing number of the EU’s underserved groups, which currently constitute approximately a quarter of its population. This study examines how the PSD2 and OB impact inclusive finance in the EU based on the perspectives of the Netherlands’ ecosystem, one of the leaders in the EU’s financial technology (FinTech) landscape. A fundamental distinction can be drawn between the OB users and the ecosystem’s players. Regarding the impact of financial services on the users’ inclusivity, while the PSD2 strengthens the infrastructure necessary for financial inclusion, many challenges remain, mainly because it was not designed for this purpose. This study identifies several areas of improvement that include adjustments to the know your customer and anti-money laundering processes for underserved customers, innovative ways to communicate the PSD2’s potential, and the regulation of technology providers’ activities to build trust. Meanwhile, from the ecosystem’s position, there is a need to strengthen and improve microfinance regulation according to the opportunities provided by the PSD2 to support microfinance institutions (MFIs) in scaling up and reaching underserved clients across borders with innovative services. OB improvements can also be achieved by organizations formed by MFIs and FinTechs in collaboration with banks. Such hybrid institutions will combine the best features of each of them: knowledge of the needs of local underserved clients from MFIs, technological innovations from FinTechs, and large and trusted customer bases, infrastructures, and access to institutional investments and governments from banks. Finally, an EU inclusive OB sector depends on the centrality of trusted regulators as coordination bodies.

This paper offers a business perspective on the EU data governance framework, particularly related to data sharing in the financial sector. With policy-making (“on the books”) centred on guaranteeing data privacy and data security whilst promoting innovation, firms face complexities when implementing this framework “on the ground”. We build on existing work in internet policy, governance and law, multidisciplinary insights from business and management studies, and equally consider practitioner reports, legal/policy documents and industry consultations. Using the Revised Payment Services Directive as an illustrative case, our exploratory analysis reveals an implementation labyrinth, with a so-called “privacy-security-control” nexus at its core. Already problematic for firms operating across borders in the EU, this proves to be even more the case for global companies subject to various data sharing frameworks. Our analysis also reveals that the sectoral framework by the books neither reckons with the heterogeneity of firms (incumbent and new banks, fintechs and bigtechs) nor with their business models. We expose how these “on the ground” business realities might bring unintended effects that could be further aggravated by the (inherently slower) pace of regulation, and offer recommendations for policymakers, researchers and practitioners.

Copyright of Economic Researcher Review is the property of Association of Arab Universities and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Today, the globe is seeing rapid growth in digital banking. Many financial technologies are vital and have been implemented. The most ground-breaking financial technology is open banking. It is based on the principle that it allows third-party financial service providers access to customer banking, transactional, and other financial data from banks and non-banks. However, the implementation of open banking technology is restricted due to the presence of unclear government regulations. Furthermore, there are many variables that influence the adoption of such technologies by customers. Thus, this article aims to examine the numerous variables that influence the adoption of open banking innovation among customers in Bangkok. We extend the unified theory of acceptance and use of technology 2 by incorporating a conceptual model of perceived security. The hypotheses of the conceptual model were subsequently assessed with partial least squares structural equation modelling using an online survey of 210 Bangkok consumers. Our finding reveals that open banking innovation adoption is directly influenced by performance expectations, social influence, price value, and perceived security. The hypothesis model has a significant amount of predictive ability, with an R² of 51.3%. In addition, Q² values demonstrated a moderate to high degree of predictability for open banking adoption. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Law & Emerging Technologies (JOLETS) is the property of Journal of Law & Emerging Technologies (JOLETS) and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Abstract Consent management is most critical part of open banking. Customers, banks, third party service providers, regulators are various parties involved into this process. The recent data shows that open banking has not been greatly accepted yet by customers to the fullest capability. Recent surveys conducted on usage of open banking indicates the discomfort in customer mind about data sharing. Blockchain based framework implementation can bring the required transparency into the consent management process. To achieve that Blockchain technology needs to be embraced by banks and Third party providers (TPPs) to provide customers the open banking services in transparent manner. A blockchain based framework which can be easily integrated into banks’ existing technology landscape thus becomes need of the hour. Consortium permissioned blockchain based framework implemented in Corda is suggested in this paper which addresses challenges faced by customers and it tracks data sharing violation for communicating to customers. Data sharing between bank and TPPs happen as node to node transaction and regulatory bodies can have tracking of every such transactions as owner of Notary node. Based on the legal contract between bank and TPP, framework compares and finds out in real time if any data sharing violation happening. Real-time tracking of data sharing violation and communication to customer provides transparency into the framework which will boost customer confidence and trust into the system. Regulatory bodies need to actively own this part to share information with customers about the data handling if there is any violation.

In the European Union (EU), the revised Payment Services Directive (PSD2) aims to provide more convenient and customized financial products through open banking (OB) platforms. However, little attention has been paid to the role of OB in improving the financial well-being of the growing number of the EU's underserved groups, which currently constitute approximately a quarter of its population. This study examines how the PSD2 and OB impact inclusive finance in the EU based on the perspectives of the Netherlands' ecosystem, one of the leaders in the EU's financial technology (FinTech) landscape. A fundamental distinction can be drawn between the OB users and the ecosystem's players. Regarding the impact of financial services on the users' inclusivity, while the PSD2 strengthens the infrastructure necessary for financial inclusion, many challenges remain, mainly because it was not designed for this purpose. This study identifies several areas of improvement that include adjustments to the know your customer and anti-money laundering processes for underserved customers, innovative ways to communicate the PSD2's potential, and the regulation of technology providers' activities to build trust. Meanwhile, from the ecosystem's position, there is a need to strengthen and improve microfinance regulation according to the opportunities provided by the PSD2 to support microfinance institutions (MFIs) in scaling up and reaching underserved clients across borders with innovative services. OB improvements can also be achieved by organizations formed by MFIs and FinTechs in collaboration with banks. Such hybrid institutions will combine the best features of each of them: knowledge of the needs of local underserved clients from MFIs, technological innovations from FinTechs, and large and trusted customer bases, infrastructures, and access to institutional investments and governments from banks. Finally, an EU inclusive OB sector depends on the centrality of trusted regulators as coordination bodies. Highlights: The PSD2 requires adjustments for underserved populations' specific needs. OB improvements can be achieved by organizations formed by MFIs and FinTechs in collaboration with banks. Regulated technical service providers (TSPs) are crucial to building trust and customer adoption in OB. The European Banking Authority (EBA) may function as coordination body to design inclusive rules by engaging with OB stakeholders. As inclusive finance moves into open-finance and data eras, an increasing regulatory complexity and scope will require networks of innovative and trusted regulators. [ABSTRACT FROM AUTHOR]

Open banking is one of the main transformational levers to improve competitiveness in retail banking by enabling client data sharing with third-party providers. This study enhances the traditional Technology Acceptance Model (TAM) constructs with two additional factors, initial trust and social influence, to understand clients' behavioral intention to adopt open banking. The study analyzes a sample of 553 surveys in Spain, a country with an established open banking regulation (European Union's Second Payment Services Directive). The proposed model showed robust explanatory capacity (R2 = 85%). Results show that perceived usefulness, social influence, and initial trust are essential in determining the behavioral intention to embrace open banking. Nevertheless, perceived ease of use plays a minor role, an outcome aligned with current fintech adoption literature. Our study implies that private agents should focus on highlighting the benefits of open banking while policymakers should work on regulatory frameworks to increase clients' initial confidence. [ABSTRACT FROM AUTHOR]

Financial technologies (FinTechs) have been rapidly advancing in recent years, enabling transactions in financial markets to become faster, more efficient, and more secure. The use of advanced technologies such as artificial intelligence (AI) and machine learning (ML) provides significant advantages to the financial services sector. The complexity of financial markets and the need for swift action increase the demand for financial technologies. FinTech plays an important role in offering more services at lower costs, helping traditional financial institutions remain competitive, and creating new market opportunities. Additionally, it supports financial inclusion by increasing access to financial services and plays a vital role in achieving sustainable development goals. In this section, we discuss the importance of FinTech, the conveniences and advantages it brings to transactions in financial markets, and the opportunities it provides to market participants. [ABSTRACT FROM AUTHOR]

In 2021, Bank Indonesia launched the National Open API Payment Standard (SNAP) to facilitate interoperable data-access for Indonesia’s digital payments sector. This article examines the lessons learned from the UK’s experience in open payments to improve the regulatory and institutional framework of Indonesia’s open banking regime. This article employs a comparative legal analysis of the UK’s open banking regime and concludes that Indonesia’s open banking regime could be improved by expanding the delivery of the Open API standards enabling interoperable data access for the entire financial services sector through an outcomes-based approach. Such expansion could be facilitated by encouraging collaboration between banks and fintechs and by creating an Open Banking App Store to increase user adoption, enhance product visibility, and widen access to digital financial services for Micro, Small, and Medium Enterprises (MSMEs)

The emergence of financial technology companies (fintechs) has spurred expectations that they will lead to large-scale disintermediation in finance and significantly disrupt the banking industry. Regulators in several jurisdictions have supported their market entry through the adoption of open banking policies, whose purpose is to facilitate third-party access to banking data, subject to customer consent. Data access has been seen as a competitive bottleneck in the banking industry, while customers hold the ultimate ownership over their data. This paper aims to critically assess proclaimed promises of open banking by analysing existing barriers to entry and market-based collaborations between banks and fintechs as identified in the literature. Since the expected effects can vary depending on the regulatory model embraced, the paper also outlines the economic trade-offs of different regulatory solutions. Consequently, the paper may help regulators who are considering introducing or designing open banking policies.