Global Digitization Is A Must

In the context of the global digitization of the economy and the development of alternative banking services, the transition to open platforms and their integration with the FinTech sector becomes relevant.

There are four levels of integration between banks and FinTech companies: traditional banking, digital banking, open banking, and Open-X banking.

At the current stage, the first three models coexist. Traditional banking includes classic banking services (loans, deposits, payments) for individuals and corporate clients and investment banking. Digital banking involves using various channels of banking services for clients, among which the digital channel plays a significant role.

Open Banking

Open banking is based on the bank’s ability to engage non-banking intermediary ecosystems and third parties to the banking service provision and to interact with them through technologies such as Application Programming Interfaces (API).

Open-X Banking

The highest level of integration of banks and FinTech companies and the future development trend of the banking sector is Open-X banking.

The main features of Open-X banking include sharing rather than sole ownership; information is a primary resource instead of tangible assets; partnerships between market actors are formed instead of developing the product independently or purchasing ready-made software solutions; focus on providing a positive…