{"id":24020,"date":"2026-04-07T16:53:04","date_gmt":"2026-04-07T09:53:04","guid":{"rendered":"https:\/\/fpt-is.com\/en\/?post_type=goc_nhin_so&#038;p=24020"},"modified":"2026-04-07T16:53:04","modified_gmt":"2026-04-07T09:53:04","slug":"what-is-open-banking-a-breakthrough-in-external-connectivity-for-banks","status":"publish","type":"goc_nhin_so","link":"https:\/\/fpt-is.com\/en\/insights\/what-is-open-banking-a-breakthrough-in-external-connectivity-for-banks\/","title":{"rendered":"What Is Open Banking? \u2013 A Breakthrough in External Connectivity for Banks"},"content":{"rendered":"<h2><span style=\"font-size: 12pt;font-family: arial, helvetica, sans-serif\"><strong>What is Open Banking? \u2013 Advancing External Connectivity in Banking Operations<\/strong><\/span><\/h2>\n<p><span style=\"font-family: arial, helvetica, sans-serif;font-size: 12pt\"><span style=\"font-weight: 400\">The origins of <\/span><b>Open Banking<\/b><span style=\"font-weight: 400\"> lie in the long-standing, closed operating model of the traditional banking sector\u2014where data and customer interactions were tightly controlled within institutional boundaries. Customer data was treated as a proprietary asset, stored in isolated internal systems. However, in the digital era, data only realizes its true value when it is actively leveraged to expand product offerings and enable meaningful connections beyond the bank\u2019s own ecosystem.<\/span><\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;font-size: 12pt\"><span style=\"font-weight: 400\">Open Banking represents a financial model that allows banks to share customer financial data with third parties\u2014such as fintech companies and service providers\u2014through Application Programming Interfaces <\/span><b>(APIs)<\/b><span style=\"font-weight: 400\">.<\/span><\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;font-size: 12pt\"><span style=\"font-weight: 400\">This model enables banks to extend their reach beyond traditional channels, unlocking new customer segments and service opportunities. In this context, <\/span><b>Artificial Intelligence (AI)<\/b><span style=\"font-weight: 400\"> plays a pivotal role. AI processes vast streams of data, continuously learning, analyzing, and generating real-time insights. These capabilities enhance the efficiency of financial service delivery while enabling banks to engage and acquire customers more effectively in the digital landscape.<\/span><\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;font-size: 12pt\"><a href=\"https:\/\/cdn.fpt-is.com\/en\/sites\/3\/2026\/04\/Open-Banking-Service-Segmentation-2-1775553204.jpg\"><img decoding=\"async\" class=\"size-full wp-image-24030 aligncenter\" src=\"https:\/\/cdn.fpt-is.com\/en\/sites\/3\/2026\/04\/Open-Banking-Service-Segmentation-2-1775553204.jpg\" alt=\"Open Banking Service Segmentation (2) 1775553204\" width=\"2048\" height=\"1193\" srcset=\"https:\/\/cdn.fpt-is.com\/en\/sites\/3\/2026\/04\/Open-Banking-Service-Segmentation-2-1775553204.jpg 2048w, https:\/\/cdn.fpt-is.com\/en\/sites\/3\/2026\/04\/Open-Banking-Service-Segmentation-2-1775553204-700x408.jpg 700w\" sizes=\"(max-width: 2048px) 100vw, 2048px\" \/><\/a><\/span><\/p>\n<h2><span style=\"font-family: arial, helvetica, sans-serif;font-size: 12pt\"><b>How AI Is Reshaping Open Banking<\/b><\/span><\/h2>\n<p><span style=\"font-weight: 400;font-family: arial, helvetica, sans-serif;font-size: 12pt\">Artificial Intelligence (AI) is rapidly transforming the Open Banking landscape, enabling more intelligent, data-driven financial services. Its applications are becoming increasingly widespread and impactful:<\/span><\/p>\n<ul>\n<li><span style=\"font-family: arial, helvetica, sans-serif;font-size: 12pt\"><b>Hyper-personalization: <\/b><span style=\"font-weight: 400\">Gone are the days of mass marketing emails. By analyzing transaction histories across multiple banks, AI can deliver highly tailored financial recommendations for each individual customer. For instance, if a customer consistently overspends, AI can go beyond simple alerts\u2014proactively suggesting automated savings plans or allocating funds into flexible investment portfolios.<\/span><\/span><\/li>\n<\/ul>\n<ul>\n<li><span style=\"font-family: arial, helvetica, sans-serif;font-size: 12pt\"><b>Enhanced credit scoring: <\/b><span style=\"font-weight: 400\">AI leverages data from Open Banking sources\u2014such as utility bills, shopping behavior, and e-wallet payment histories\u2014to build alternative credit profiles. This enables financial institutions to assess individuals who lack traditional credit histories, significantly expanding access to financial services and promoting greater financial inclusion.<\/span><\/span><\/li>\n<\/ul>\n<ul>\n<li><span style=\"font-family: arial, helvetica, sans-serif;font-size: 12pt\"><b>Proactive risk management: <\/b><span style=\"font-weight: 400\">Rather than detecting fraud after the fact, AI enables real-time identification of anomalous behaviors and potentially fraudulent transactions. It can trigger instant alerts or even support automated decision-making, allowing banks to block suspicious activities at the moment they occur.<\/span><\/span><\/li>\n<\/ul>\n<h2><span style=\"font-size: 12pt\"><strong><span style=\"font-family: arial, helvetica, sans-serif\">Banks are transforming the way they interact with external partners<\/span><\/strong><\/span><\/h2>\n<p><span style=\"font-family: arial, helvetica, sans-serif;font-size: 12pt\"><span style=\"font-weight: 400\">In this model, banks are no longer the endpoint of services but instead function as a <\/span><b>platform<\/b><span style=\"font-weight: 400\">. The interaction between banks and external partners\u2014<\/span><b>Third-Party Providers (TPPs)<\/b><span style=\"font-weight: 400\">\u2014is increasingly expanding:<\/span><\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400;font-family: arial, helvetica, sans-serif;font-size: 12pt\">Banks are enabling third-party applications to perform tasks that traditionally required direct customer interaction, such as initiating payments directly from bank accounts, bypassing intermediary steps like credit cards.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400;font-family: arial, helvetica, sans-serif;font-size: 12pt\">They also allow applications to aggregate data from multiple accounts to provide a comprehensive view of customers\u2019 financial situations.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;font-family: arial, helvetica, sans-serif;font-size: 12pt\">Modern banks are proactively building integration gateways, where Fintech companies and external partners can seamlessly connect their services, creating a symbiotic ecosystem that continuously expands and delivers financial services to new customer segments.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;font-size: 12pt\"><a href=\"https:\/\/cdn.fpt-is.com\/en\/sites\/3\/2026\/04\/Open-Banking-Service-Segmentation-1-1775552933.jpg\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-24027\" src=\"https:\/\/cdn.fpt-is.com\/en\/sites\/3\/2026\/04\/Open-Banking-Service-Segmentation-1-1775552933.jpg\" alt=\"Open Banking Service Segmentation (1) 1775552933\" width=\"2048\" height=\"1193\" srcset=\"https:\/\/cdn.fpt-is.com\/en\/sites\/3\/2026\/04\/Open-Banking-Service-Segmentation-1-1775552933.jpg 2048w, https:\/\/cdn.fpt-is.com\/en\/sites\/3\/2026\/04\/Open-Banking-Service-Segmentation-1-1775552933-700x408.jpg 700w\" sizes=\"(max-width: 2048px) 100vw, 2048px\" \/><\/a><\/span><\/p>\n<h2><span style=\"font-family: arial, helvetica, sans-serif;font-size: 12pt\"><b>Benefits of Open Banking<\/b><\/span><\/h2>\n<p><span style=\"font-weight: 400;font-family: arial, helvetica, sans-serif;font-size: 12pt\">Open Banking frees customers from being tied to a single bank. They can manage their entire financial life through a single application, access more affordable financial products thanks to increased competition, and enjoy a user experience optimized at every touchpoint.<\/span><\/p>\n<p><span style=\"font-weight: 400;font-family: arial, helvetica, sans-serif;font-size: 12pt\">For banks, Open Banking enables customer base expansion without the need to invest in additional physical branches. More importantly, it unlocks new revenue streams through Banking-as-a-Service (BaaS). Banks can charge fees per API call or collaborate with fintech partners to develop niche financial products with high growth potential.<\/span><\/p>\n<h2><span style=\"font-family: arial, helvetica, sans-serif;font-size: 12pt\"><b>Challenges in Expanding Open Banking<\/b><\/span><\/h2>\n<p><span style=\"font-weight: 400;font-family: arial, helvetica, sans-serif;font-size: 12pt\">Despite its strong potential, the implementation of Open Banking\u2014especially when combined with AI\u2014faces several inherent challenges:<\/span><\/p>\n<ul>\n<li><span style=\"font-family: arial, helvetica, sans-serif;font-size: 12pt\"><b>Security and Privacy: <\/b><span style=\"font-weight: 400\">This remains a primary concern. Opening up data increases exposure to cyberattacks and fraud in digital environments. Furthermore, applying AI to sensitive financial data requires robust regulatory frameworks to prevent misuse and ensure compliance with legal standards.<\/span><\/span><\/li>\n<\/ul>\n<ul>\n<li><span style=\"font-family: arial, helvetica, sans-serif;font-size: 12pt\"><b>Legacy Systems: <\/b><span style=\"font-weight: 400\">Many banks continue to operate on outdated technology platforms built decades ago. Integrating modern APIs into these complex and rigid systems presents significant challenges in both cost and human resources.<\/span><\/span><\/li>\n<\/ul>\n<ul>\n<li><span style=\"font-family: arial, helvetica, sans-serif;font-size: 12pt\"><b>Trust Barriers: <\/b><span style=\"font-weight: 400\">Customers remain cautious about sharing passwords or granting account access to third parties. Building trust is a long-term process that requires transparency and strong security assurances.<\/span><\/span><\/li>\n<\/ul>\n<h2><span style=\"font-family: arial, helvetica, sans-serif;font-size: 12pt\"><b>Opportunities for Technology and Fintech Companies<\/b><\/span><\/h2>\n<p><span style=\"font-weight: 400;font-family: arial, helvetica, sans-serif;font-size: 12pt\">In this evolving landscape, technology firms are not merely partners\u2014they are key enablers shaping the future of Open Banking:<\/span><\/p>\n<ul>\n<li><span style=\"font-family: arial, helvetica, sans-serif;font-size: 12pt\"><b>Connectivity Infrastructure: <\/b><span style=\"font-weight: 400\">There is strong demand for middleware platforms that standardize APIs between banks and external partners, making this a highly promising segment.<\/span><\/span><\/li>\n<\/ul>\n<ul>\n<li><span style=\"font-family: arial, helvetica, sans-serif;font-size: 12pt\"><b>Specialized AI Solutions: <\/b><span style=\"font-weight: 400\">Developing AI models tailored specifically for Open Banking data\u2014such as transaction classification or cash flow forecasting for SMEs\u2014offers significant value.<\/span><\/span><\/li>\n<\/ul>\n<ul>\n<li><span style=\"font-family: arial, helvetica, sans-serif;font-size: 12pt\"><b>Embedded Finance: <\/b><span style=\"font-weight: 400\">Open Banking creates opportunities to integrate financial services into everyday applications\u2014from retail and healthcare to education\u2014by leveraging APIs and AI capabilities.<\/span><\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;font-family: arial, helvetica, sans-serif;font-size: 12pt\">Open Banking and AI are reshaping the global financial landscape. Success will not belong to the largest institutions, but to the fastest and most adaptable\u2014those capable of building seamless connections and deeply understanding customer needs.<\/span><\/p>\n<p><span style=\"font-weight: 400;font-family: arial, helvetica, sans-serif;font-size: 12pt\">As regulatory barriers gradually ease and AI becomes more accessible, financial services are increasingly integrated into daily life\u2014delivered in smarter, more intuitive ways than ever before.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;font-size: 12pt\"><strong>This article is an exclusive contribution by Luong Ngoc Binh, Digital Technology \u2013 Data \u2013 AI Expert in the Banking and Financial Services sector.<\/strong><\/span><\/p>\n<p><span style=\"font-weight: 400;font-family: arial, helvetica, sans-serif;font-size: 12pt\">With over 16 years of experience in finance and banking, including more than 10 years in digital banking, he specializes in consulting and developing Data\u2013AI solutions for financial institutions. He has contributed to the development of core platforms and digital solutions for major banks such as BIDV, Agribank, and PVCombank.<\/span><\/p>\n<h2><span style=\"font-family: arial, helvetica, sans-serif;font-size: 12pt\"><b>References<\/b><\/span><\/h2>\n<p><span style=\"font-family: arial, helvetica, sans-serif;font-size: 12pt\"><span style=\"font-weight: 400\">[1] Grand View Research (2024). <\/span><a href=\"https:\/\/www.grandviewresearch.com\/industry-analysis\/open-banking-systems-market\" rel=\"nofollow noopener\" target=\"_blank\"><span style=\"font-weight: 400\">\u00a0Open Banking Market Size, Share &amp; Trends Analysis Report, 2025\u20132030. <\/span><\/a><span style=\"font-weight: 400\">\u00a0<\/span><\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;font-size: 12pt\"><span style=\"font-weight: 400\">[2] Grand View Research \u2013 Press Release (2024). <\/span><a href=\"https:\/\/www.grandviewresearch.com\/press-release\/global-open-banking-market\" rel=\"nofollow noopener\" target=\"_blank\"><span style=\"font-weight: 400\">Open Banking Market Size To Reach $135.17 Billion By 2030.<\/span><\/a><\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;font-size: 12pt\"><span style=\"font-weight: 400\">[3] Grand View Research \u2013 Europe Outlook (2025).<\/span><a href=\"https:\/\/www.grandviewresearch.com\/horizon\/outlook\/open-banking-market\/europe\" rel=\"nofollow noopener\" target=\"_blank\"><span style=\"font-weight: 400\"> Europe Open Banking Market Size &amp; Outlook, 2030.<\/span><\/a><\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;font-size: 12pt\"><span style=\"font-weight: 400\">[4] Feedzai (May 2025). <\/span><a href=\"https:\/\/www.grandviewresearch.com\/horizon\/outlook\/open-banking-market\/europe\" rel=\"nofollow noopener\" target=\"_blank\"><span style=\"font-weight: 400\">2025 AI Trends in Fraud and Financial Crime Prevention.<\/span><\/a><\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;font-size: 12pt\"><span style=\"font-weight: 400\">[5] Feedzai (2025). <\/span><a href=\"https:\/\/www.feedzai.com\/resource\/state-of-ai\/\" rel=\"nofollow noopener\" target=\"_blank\"><span style=\"font-weight: 400\">State of AI in Financial Crime Prevention.<\/span><\/a><\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;font-size: 12pt\"><span style=\"font-weight: 400\">[6] Business Wire (May 6, 2025). <\/span><a href=\"https:\/\/www.businesswire.com\/news\/home\/20250506363100\/en\/Feedzai-More-Than-50-of-Fraud-Driven-by-AI-and-Hyper-Realistic-Impersonations-but-Banks-Also-Use-Generative-AI-to-Fight-Back\" rel=\"nofollow noopener\" target=\"_blank\"><span style=\"font-weight: 400\">Feedzai: More Than 50% of Fraud Driven by AI and Hyper-Realistic Impersonations.<\/span><\/a><\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;font-size: 12pt\"><span style=\"font-weight: 400\">[7] Coinlaw.io (2024).<\/span><a href=\"https:\/\/coinlaw.io\/online-banking-usage-statistics\/\" rel=\"nofollow noopener\" target=\"_blank\"><span style=\"font-weight: 400\">Online Banking Usage Statistics 2025<\/span><\/a><\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;font-size: 12pt\"><i><\/i><span style=\"font-weight: 400\"> [8] Open Banking Limited (May 2025). <\/span><i><span style=\"font-weight: 400\">Impact Report 7. <\/span><\/i><a href=\"https:\/\/www.openbanking.org.uk\/insights\/obl-impact-report-7-open-banking-delivers-real-world-impact-as-adoption-accelerates-year-on-year\/\" rel=\"nofollow noopener\" target=\"_blank\"><i><span style=\"font-weight: 400\">Open Banking delivers real-world impact as adoption accelerates year-on-year<\/span><\/i><\/a><\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;font-size: 12pt\"><i><\/i><span style=\"font-weight: 400\"> [9] Open Banking Limited (September 2025). <\/span><i><span style=\"font-weight: 400\">2 Billion API Calls and 15 Million Users. <\/span><\/i><a href=\"https:\/\/www.openbanking.org.uk\/insights\/2-billion-api-calls-and-15-million-users-a-landmark-month-for-open-banking-in-the-uk\/\" rel=\"nofollow noopener\" target=\"_blank\"><i><span style=\"font-weight: 400\">2 Billion API calls and 15 Million users \u2014 a landmark month for open banking in the UK.\u00a0<\/span><\/i><\/a><\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;font-size: 12pt\"><i><\/i><span style=\"font-weight: 400\"> [10] Open Banking Limited (January 2026). <\/span><a href=\"https:\/\/www.openbanking.org.uk\/insights\/open-banking-in-2025-now-part-of-the-uks-everyday-financial-life\/\" rel=\"nofollow noopener\" target=\"_blank\"><i><span style=\"font-weight: 400\">Open Banking in 2025: Now Part of the UK\u2019s Everyday Financial Life.<\/span><\/i><i><\/i><\/a><\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;font-size: 12pt\"><span style=\"font-weight: 400\">[11] Juniper Research (April 2025). <\/span><a href=\"https:\/\/www.juniperresearch.com\/press\/open-banking-user-numbers-to-surge-by-over-250\/\" rel=\"nofollow noopener\" target=\"_blank\"><i><span style=\"font-weight: 400\">Open Banking User Numbers to Surge by Over 250% by 2029.<\/span><\/i><i><span style=\"font-weight: 400\"><br \/>\n<\/span><\/i><\/a><\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;font-size: 12pt\"><span style=\"font-weight: 400\">[12] AWISEE (2025). <\/span><a href=\"https:\/\/awisee.com\/blog\/neobanking-statistics\/\" rel=\"nofollow noopener\" target=\"_blank\"><i><span style=\"font-weight: 400\">Neobanking Statistics: Market Size, Users &amp; Growth Trends.<\/span><\/i><\/a><\/span><\/p>\n","protected":false},"author":21,"featured_media":24026,"parent":0,"template":"","nang_luc":[821],"danh_muc_goc_nhin_so":[],"dich_vu":[],"linh_vuc":[],"platform":[],"san_pham":[],"the_goc_nhin_so":[],"class_list":["post-24020","goc_nhin_so","type-goc_nhin_so","status-publish","has-post-thumbnail","hentry","nang_luc-security"],"acf":[],"_links":{"self":[{"href":"https:\/\/fpt-is.com\/en\/wp-json\/wp\/v2\/goc_nhin_so\/24020","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fpt-is.com\/en\/wp-json\/wp\/v2\/goc_nhin_so"}],"about":[{"href":"https:\/\/fpt-is.com\/en\/wp-json\/wp\/v2\/types\/goc_nhin_so"}],"author":[{"embeddable":true,"href":"https:\/\/fpt-is.com\/en\/wp-json\/wp\/v2\/users\/21"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/fpt-is.com\/en\/wp-json\/wp\/v2\/media\/24026"}],"wp:attachment":[{"href":"https:\/\/fpt-is.com\/en\/wp-json\/wp\/v2\/media?parent=24020"}],"wp:term":[{"taxonomy":"nang_luc","embeddable":true,"href":"https:\/\/fpt-is.com\/en\/wp-json\/wp\/v2\/nang_luc?post=24020"},{"taxonomy":"danh_muc_goc_nhin_so","embeddable":true,"href":"https:\/\/fpt-is.com\/en\/wp-json\/wp\/v2\/danh_muc_goc_nhin_so?post=24020"},{"taxonomy":"dich_vu","embeddable":true,"href":"https:\/\/fpt-is.com\/en\/wp-json\/wp\/v2\/dich_vu?post=24020"},{"taxonomy":"linh_vuc","embeddable":true,"href":"https:\/\/fpt-is.com\/en\/wp-json\/wp\/v2\/linh_vuc?post=24020"},{"taxonomy":"platform","embeddable":true,"href":"https:\/\/fpt-is.com\/en\/wp-json\/wp\/v2\/platform?post=24020"},{"taxonomy":"san_pham","embeddable":true,"href":"https:\/\/fpt-is.com\/en\/wp-json\/wp\/v2\/san_pham?post=24020"},{"taxonomy":"the_goc_nhin_so","embeddable":true,"href":"https:\/\/fpt-is.com\/en\/wp-json\/wp\/v2\/the_goc_nhin_so?post=24020"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}