Question

Open banking is a system that provides a user with a network of financial institutions' data through the use of application programming interfaces (APIs). The Open Banking Standard defines how financial data should be created, shared and accessed. Open banking is meant to improve customers’ banking experience in several ways. It forces large, established banks to be more competitive with smaller and newer banks, ideally resulting in lower costs, better technology, and better customer service. Open banking regulations require banks to publish, both online and inside their branches, accurate and unbiased information that lets consumers evaluate their service quality, a move towards transparency designed to motivate banks to provide the best possible customer experience. Banks also have to notify customers about unforeseen overdrafts and give them a grace period to correct the problem and avoid overdraft charges. Evaluate this type of emerging banking system by:

i. Explaining its infrastructural components and management. 15 marks

please advise the required additional information. thanks

Answer 1

Implementation of open banking systems requires following infrastructure components such as

1. Increasing internal agility

2.Buildinga consistent omnichannel experience.

3.Creating customer or partner ecosystems.

4.Integrating with cloud applications, including native, mobile, and Internet of Things (IoT).

5.Using existing data and services better.

6.Enabling SaaS integrations across hybrid environments.

And infrastructure components can be managed by accessing

1. Changes in the earnings

2. Increased rate of innovation for example newer community access and their requirements will lead to newer solutions

3. Improvements in the internal environment and processes

4. Ecosystem growth (i.e. ready access to database to wide network)