IDEAS home Printed from https://ideas.repec.org/a/aza/jpss00/y2020v14i2p128-146.html
   My bibliography  Save this article

Open banking: The rise of the cloud platform

Author

Listed:
  • Farrow, Gary S.D.

    (Director, UK)

Abstract

This paper explores how traditional banking system architectures will be affected by the emergence of open banking. Platform models for open banking are proposed that accommodate both supply and demand-side solutions. On the demand side, the network effects of open banking platforms and their limitations are discussed. Using a feedback model of platform behaviour, it is suggested that the long-term success of open banking can be directly coupled to the emergence of such platforms and their regulatory scope. To inform the architectures to support open banking, the unique transactional characteristics of open banking solutions are determined. The essential role of cloud technologies in meeting these characteristics and hence the propensity for their use in the implementation of open banking platforms is illustrated. Specific types of open banking platforms are then described in terms of their essential architectural components and collaborations. The benefits to account servicing payment service providers and to third-party providers in adopting such open banking platforms are highlighted.

Suggested Citation

  • Farrow, Gary S.D., 2020. "Open banking: The rise of the cloud platform," Journal of Payments Strategy & Systems, Henry Stewart Publications, vol. 14(2), pages 128-146, June.
    • Handle: RePEc:aza:jpss00:y:2020:v:14:i:2:p:128-146
    as

    Download full text from publisher

    File URL: https://hstalks.com/article/5675/download/
    Download Restriction: Requires a paid subscription for full access.
    File URL: https://hstalks.com/article/5675/
    Download Restriction: Requires a paid subscription for full access.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    PSD2; open banking; cloud platform; FinTech; banking architecture; BaaS;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aza:jpss00:y:2020:v:14:i:2:p:128-146. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Henry Stewart Talks (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.