Menu

How is Open Banking different from Traditional Banking?

21 Apr 2022 By PAYCEC

The traditional banking model is under threat as a result of the increasing use of "Open Banking" and the emergence of digital banks and fintech companies. Here are some differences between Open Banking and Traditional banking:

Open Banking Traditional banking

For today's consumers, digital banking is critical.

Consumers can access banking service 24/7

Focusing on in-person customer service and a system of branches and headquarter.

Accessibility may be lacking with banks that do not have online banking capabilities

Open Banking helps customers connect with other banks within the system easily. Customers may pay higher transaction fees or be unable to withdraw cash when there is no ATM of their bank when traveling.
Banking consumers benefit from instant payment when shopping in-store and online No real-time payment.
Banking services can connect with other digital payment methods like e-wallets: Paypal, Apple pay, Google pay, etc. Cannot share data with third parties.
Open Banking operates based on an open API architecture that integrates best-of-breed business functions. Traditional banking software was created as a self-contained set of pre-integrated business processes. API interoperability was not possible with these functions.
With the rise of digital banks and fintech firms, the market has seen plenty of new competitors offering more agile digital products, innovative user experiences, data-driven insights and tailored products and services. Competition is only for banks and financial institutions.
The adoption of Open Banking creates revenue-sharing ecosystems, customers and merchants will benefit from subscriptions and referral services. There is no recurring payment applied.
Arousing the risk of data violation. More security and data protection.
There are more big tech companies that embark on the market like Google, Amazon and Apple as well as Fintech firms. Only banks and financial companies participate in the game.

Have other questions?

If you need further assistance or answer, please don't hesitate to contact us.

Have other questions?

The Media

Finextra One IBC Yahoo Finance
About us

who we are

about us

We are honored to serve as your reliable business partner and financial service provider in the industry and other business-related services. With the help of our professional staff, to help merchants to achieve their goals for the development and expansion of the international business market.

Our payment flow has developed in the e-commerce world to perform seamlessly and effectively across all platforms and devices. We take pleasure in combining technology with customer service, to solve your concerns at the moment.

PayCEC is a fully worldwide payment network that not only allows merchants to be paid immediately and securely, but also allows them to withdraw money in multiple currencies to their company accounts.

We will contact you shortly.

Email Phone
Scroll top