Open banking is a system that allows for financial data to be shared between banks and third-party service providers through the use of application programming interfaces (APIs) . Traditionally, banks have kept customer financial data within their own closed systems, but open banking allows customers to share their financial information securely and electronically with other authorized organizations, such as fintech companies, payment providers, and other banks. Open banking provides greater transparency and data control for account holders, and could allow for new financial services to be provided. It aims to promote competition, innovation, and customer empowerment in the banking and financial sectors. However, opponents argue that open banking can lead to greater security risk and exploitation of consumers. Open banking is becoming a major source of innovation that is poised to reshape the banking industry. It puts consumers and small businesses at the center of where and how their financial data is used, ensuring they control it and that they benefit from it through more choice in the way they pay, manage their money, access credit and more.