Open banking platforms need to have three elements: open APIs, data*** sharing, and platform cooperation.

1, open API

Open API is suitable to serve as a bridge for traditional banks to go out and integrate with third-party organizations.

2, data **** enjoy

*** enjoy data refers to the banking field **** enjoy the data generated by customers through a series of behaviors such as payment, credit, savings.

3. Platform cooperation

Platform cooperation, unlike the previous form of directly communicating products and services to customers, Open Banking adopts the form of Bank-as-a-Platform (BaaP, bank as a platform), grafting different business ecologies on top of the platform, and then indirectly providing all kinds of financial services to customers through these business ecologies. Thus forming a *** enjoyable and open platform model.

Benefits of Open Banking

1. Benefits to Customers:

Greater freedom to compare and seamlessly switch between financial service providers; aggregation of finances without having to deal with multiple accounts; and the realization of financial inclusion to provide financial services to consumers who do not qualify for or find the cost of traditional banking services too high; More efficient access to financial services in areas such as accounts receivable processing.

2. Benefits for banks:

Cultivate an innovation ecosystem to extend their offerings by opening up their core business functions to third-party integrations through APIs; improve customer satisfaction by customizing enhanced service offerings based on user needs; reach underserved populations into a larger pool of profits; increase revenue capacity with purely digital services; and participate in regulatory dialogues and technology consortia to develop technical specifications.

3. Benefits for fintech companies:

Easily reach a bank's customer base, creating very high customer coverage; access to large amounts of transactional data held by the bank, combining big data and AI technology to build a business strategy; build virtual services without having to physically hold a user's deposits or provide financial advice; potentially circumventing complex and costly bank compliance requirements.

4. Benefits for non-financial service providers:

Participation in financial transactions and related data is a lucrative opportunity; provides standardized interfaces to access consumer money and financial data without the need to build specialized interfaces; empowers banks to share cutting-edge practices in compliance, data security, forensics and governance.