The transformative impact of open banking on financial services

Mula, Krishna (2025) The transformative impact of open banking on financial services. World Journal of Advanced Engineering Technology and Sciences, 15 (1). pp. 1959-1969. ISSN 2582-8266

Open Banking represents a transformative paradigm in financial services, enabling secure data exchange between institutions and third parties through standardized APIs. This technical article examines three critical dimensions of successful implementation: (1) security architecture – where our findings demonstrate that multi-layered defense models following the Basel Committee's operational risk framework reduce security incidents by 63% compared to perimeter-focused approaches; (2) cross-jurisdictional interoperability – where our comparative assessment reveals that despite regulatory fragmentation, institutions implementing adapter patterns between regional frameworks achieve 46% lower integration costs while maintaining compliance across borders; and (3) evolutionary pathways to Open Finance – where our structured approach mapping product-specific implementation requirements enables financial institutions to reduce time-to-market by an average of 3.6 months when expanding beyond core banking services. Through the examination of regulatory frameworks, technical standards, and implementation patterns across major markets, this article provides a comprehensive framework for navigating the complex technical challenges of Open Banking implementation while positioning institutions for success in the evolving financial data ecosystem.