CYBERSECURITY
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The finance sector is constantly evolving alongside technology , with innovations coming in thick and fast : first online banking , then banking apps and now mobile-first challenger banks . Now , open banking is causing more changes in the financial landscape . Generally , this new landscape requires that with a customer ’ s consent , banks must make payment initiation and account transaction data available to third parties via application programming interfaces ( APIs ), a shift that enables new players to compete in areas banks have traditionally controlled , forcing legacy banks to reassess their approach .
A recent Accenture report concluded that ‘ only a minority of incumbent banks are making the necessary difficult choices for the digital age ’. Open banking is one instance in which this is clear . While its uptake by challengers has been significant ( according to Ernst & Young research , 94 % of fintech firms view open banking as a source of opportunity and 81 % are actively preparing for it ), one recent report noted that only 1 % of US banks are designing open banking platforms .
MARCH 2019