Briefing

Open Banking: A Critical Piece in the Future of Financial Services


Abstract: Open banking enables consumers to securely share data from their bank accounts with third-party service providers. By using application programming interfaces, open banking facilitates innovations such as Pay-by-Bank payments, instant bill payments, and cash-flow-based lending. While regulatory efforts are underway at both federal and state levels, technological and operational barriers and a lack of standardization continue to challenge widespread use of open banking in the United States.

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Bibliographic Information

Provider: Federal Reserve Bank of Kansas City

Part of Series: Payments System Research Briefing

Publication Date: 2026-08-03

Pages: 5