Open banking: Opening up the ‘walled gardens’
Baran Aytaş,
Serdar Murat Öztaner and
Emrah Şener
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Baran Aytaş: Deputy General Manager of Digital Payment Solutions, Interbank Card Center, Turkey
Serdar Murat Öztaner: Deputy Executive Director, Payment Systems and Financial Technologies at Central Bank of the Republic of Turkey, Turkey
Emrah Şener: Deputy Governor, Central Bank of the Republic of Turkey, Turkey
Journal of Payments Strategy & Systems, 2021, vol. 15, issue 4, 419-431
Abstract:
This paper explores the reasons for differences in open banking systems around the world in order to identify the ideal conditions for open banking. Following an examination of different approaches to open banking, the paper identifies six parameters that are essential for success, and discusses how to optimise these based on the Turkish experience. The findings have important implications for regulators of open banking initiatives. First, the active involvement of the regulator is crucial, especially during the early stages of implementation. More than simply providing the legal framework for open banking, regulators need to participate actively in the design and implementation of such systems, providing guidance for application programming interface standards and efficient infrastructures. Secondly, it is essential to build and maintain a shared platform with standardised infrastructure to foster fast adoption. Finally, the development of an instant payment system is critical to unlocking the full potential of open banking.
Keywords: optimal design for payment systems; open banking regulation; instant payments; standardised APIs; shared platforms (search for similar items in EconPapers)
JEL-codes: E5 G2 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:aza:jpss00:y:2021:v:15:i:4:p:419-431
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