Opening Doors to Open Finance: Evidence From the International Experience

Open finance is transforming the financial system, with rapid adoption in several jurisdictions in the years since its introduction. By enabling the sharing and use of customer-permissioned data, open finance can foster innovation, competition and financial inclusion. Early evidence highlights a role for open finance in breaking through data silos, reducing information asymmetries and driving venture capital investment. Successful implementation depends on standardized data sharing protocols and interoperability that enable seamless payment system connectivity and data exchange, all underpinned by robust regulatory frameworks. 

This paper examines international experiences with open finance, shedding light on its impact on competition, market entry and financial access, while discussing the challenges that remain.

The paper draws on new data from jurisdictions with advanced open finance frameworks, as well as from academic research. It show that in some jurisdictions where open finance frameworks are operational, they have facilitated the entry of new types of intermediaries, like third-party financial technology (fintech) firms and large technology companies (big techs). Open finance has also promoted greater customer choice through tailored financial products and services and enhanced access for individuals and firms to financial services, notably new payment methods, and credit. While there are certainly challenges in implementation, and policy frameworks have had to adapt to experience, early evidence has been broadly positive.