Open Banking is a little-known concept, due to its poor implementation by the banking system and the lack of customer education about it.

“Generally speaking, it is a mechanism in which customer banking information is shared to applications or APIs. In this way, an ecosystem is created that is conducive to generating business, solving needs, suggesting services and much more.”

Open Banking requires data related to credit cards, statements, and account types and everything that includes the customer’s finances. Once ready, this information is synchronized with the various emerging applications and starts an exchange process that facilitates the life of anyone thanks to the bank.

Of course, there are many advantages and disadvantages of online banking. The evaluation of them is what has generated many questions for its global application.

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With Open Banking come some advantages of online banking that benefit customers and bank owners. Some of them are:

  • Helping customers in their operations: obtaining answers and services tailored to each person’s needs becomes easier with Open Banking. This is because, due to the infinity of APIs that exist and that can arise, everything is simpler. All you need is access to technology. Time spent is reduced and operations are automated.
  • Centralization of services: with Open Banking, banks once again have full control over the various services their customers need: advice, loans, transfers, and financing. Thus, everything is done with greater order and under a single administration.
  • Increase in the financial market: with the arrival of more clients in Open Banking, the diversification of APIs and services will be greater. In this way, there will be numerous offers adapted to the needs of everyone.


Some of the drawbacks of Open Banking are:

  • Low customer credibility: until now there has been an apathy or lack of credibility on the part of customers towards Open Banking. It is partly due to the fear of sharing their data, as well as to their lack of knowledge of how it works.
  • The Fintech: the growth of those companies that have replaced the banks is a major drawback for Open Banking. The Fintech market is growing. Their services are diverse and more and more there are a large number of them in all countries. They are simple, fast and do not generate so many expenses for customers.
  • It removes the interpersonal relationship with the customer: because everything is handled digitally, the face-to-face encounters between the customer and the bank are getting smaller and smaller. This can lead to a breakdown in the relationship.


The topic of security in Open Banking deserves special attention. It is currently a disadvantage, as customers fear that their data will be shared with outsiders.

This concern also encompasses some bank owners. There is a fear that their information will be exposed to cyber-attacks. Want to know an easy, quick and inexpensive way to deal with these attacks?

In any case, the solution to the problem of security in online banking is the development of software and APIs with appropriate structures and tools to ensure their operation. In this way, both banks and customers can rest assured that there will be no risks.

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