It is clear that banks must embrace new technologies, whether they are APIs, blockchain, AI, Machine Learning, the cloud, or something else entirely. To be a part of the burgeoning Open Finance movement, they must rebuild their business model around the digital exchange of data (payments, transactions, and customer information). This is How Banks Are Allowing an Open Banking Ecosystem

• Open Banking can allow financial service clients to securely communicate their financial data with other financial organizations by relying on networks rather than centralized.
• Open Banking could enable lenders to gain a more accurate picture of a customer’s financial status and risk level through the usage of networked accounts, allowing them to provide more competitive lending terms.
• Open Banking may also assist consumers in obtaining a more accurate picture of their personal financial situation before considering taking on debt.
• Open Banking can also assist small businesses to save time by allowing them to do their accounting online, as well as fraud detection organizations monitor customer accounts more closely and identify issues earlier.
• Large and established banks will be forced to compete with smaller, newer banks, resulting in cheaper prices, better technology, and better customer service in the long run.
• Open Banking APIs are seen as a more secure choice since they allow applications to share information without distributing account credentials.