OPEN-BANKING AS A TREND IN THE DEVELOPMENT OF FINANCIAL TECHNOLOGIES

Abstract

Purpose. The aim of the article is identifying opportunities and threats arising from the introduction of new digital technologies by global banking, in particular open-banking and identifying areas of cooperation between banks and third-party providers in the context of open banking. Methodology of research. The theoretical and methodological basis of the study was the scientific works of domestic and foreign scientists on the development of modern trends in innovative financial technologies. The following approaches and methods were used in writing the article: system approach - to substantiate the theoretical and applied principles of financial technology; method of complex analysis and synthesis - in the study of foreign and domestic experience of open-banking; abstract and logical method - when substantiating theoretical generalizations and conclusions. Research methods such as comparative-analytical, observation and tabular method of presenting information were also used. Findings. The essence of such innovative technology as open-banking and possibilities of its implementation in the banking business are determined. The main advantages and disadvantages of open banking by commercial banks for banks and their customers are summarized. Possibilities of implementation of open-banking experience in the realities of Ukraine are substantiated. Originality. According to the results of the study, it is substantiated that open-banking based on the API protocol, Third Party Provider (TPP) is an important trend in the financial industry, which provides open access to banking services, transactions and other financial data. Also in the process of SWOT-analysis identified strengths and weaknesses of banks, opportunities and risks in the context of open banking, as well as proposed forms of cooperation with third-party providers (for example, fin-tech companies) to promote digital ecosystems. Practical value. The obtained results can be used for further research on the implementation of open-banking in domestic practice, as this innovative tool has a stimulating effect on open banking and banks must develop a digitization strategy in terms of open APIs to promote digital ecosystems, especially with the emergence of new competitors, new technological trends, changing customer needs and regulations (PSD2). Key words: bank, financial technologies (fin-tech), digitalization, open-banking, API, TTP, PSD2, digital ecosystems.