Article: What is open banking opportunities and its risks

Money, Open Governance

What is open banking opportunities and its risks

Your personal information is creating a revolution. It is perhaps making a whole new world. Open banking is where banks and other financial institutions involve third parties to use transactional, operational or personal data to create innovative solutions. That is done by plugging in the application programming interfaces (APIs) of third-party providers.

CRED, a fintech company, allows you to pay their credit card bills by offering other freebies or short-term credit. It caters to customers with good credit scores. Then, there are disruptive businesses like
Faircent, a peer-to-peer lending platform. Any success for such a platform could threaten retail banking as it links people wanting to borrow directly to people wanting to lend.

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