Technical Note on Open Banking

Open banking has emerged strongly in the past few years as a system to give customers the right to share with parties they trust the information that banks have about them in a secure manner and also as a way to open up processes and services in banking. The main objectives pursued by regulatory frameworks that define open banking are generally encouraging innovation and fostering competition, resulting in new products and services at competitive prices to the benefit of consumers. 

While there is no single right approach, there are common challenges that countries considering regulation need to bear in mind in terms of the definition and interoperability of technical standards, security, governance, and consent and authentication mechanisms. Early lessons can be drawn from the first movers and the debates that are taking place between regulators and market participants.