Open Banking marks a pivotal shift in the finance sector, facilitating API-based partnerships that extend the traditional boundaries of banking services. Initiated by the European Union's PSD regulation in 2007 and further propelled by PSD2 in 2018, this regulatory evolution has spurred unprecedented banking innovations. By mandating increased security and fostering collaboration, PSD2 not only enhances consumer protection but also lowers costs, fostering a competitive environment that benefits consumers significantly. According to a Forrester report, Open Banking is set to revolutionize the industry by enhancing transparency, spurring innovation, and expanding customer choices, fundamentally shifting business models towards a more integrated, api-enabled banking ecosystem. This transformation promises not only increased access to banking data and bespoke products but also smoother interoperability and robust collaborative networks that fuel continuous innovation in banking.
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