Technology Adoption of Open Banking: Drivers and Barriers

Open Banking holds immense potential to revolutionize the banking industry through seamless transactions, better interoperability, and wider choices of banking services for customers. However, its diffusion across diverse economies has been gradual, and research has yet to fully elucidate the drivers and barriers critical for shaping future policies and technological design. A systematic review of 47 scholarly articles revealed that improved credit scoring mechanisms, potential for data monetization, and the development of a scalable business model are drivers of its adoption. On the other hand, lack of customer awareness, reluctance to share data, and concerns surrounding regulatory and security issues serve as primary barriers hindering the broad adoption of Open Banking. The findings of this comprehensive review bear significance not only for individual nations as they formulate regulatory policies but also for the broader context of crafting global frameworks for digital trade and finance. By addressing these drivers and barriers, policymakers and industry stakeholders can work collaboratively to expedite the adoption of Open Banking, ultimately realizing its transformative potential in the financial sector.