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Balancing Innovation and Security: Data Privacy Challenges in Open Banking and API-Driven Financial Services

Year: 2025

Type: article

Abstract: This study examines the impact of API-based financial services and open banking on market competition, customer trust, and data privacy, highlighting key challenges such as compliance complexities, unauthorized access, and data breaches.The research explores cybersecurity threats, regulatory requirements, and technological advancements influencing data security.Mitigation measures, such as regulatory frameworks and technological safeguards, are analysed to improve security while fostering innovation.Findings show that improving API security, authentication protocols, and regulatory compliance is critical for a secure open banking ecosystem.A balance between innovation and security measures will improve consumer trust and facilitate the sustainable growth of digital financial services.

Source: International Journal of Progressive Research in Engineering Management and Science

DOI: 10.58257/ijprems39180

Language: English

Topic: Privacy, Security, and Data Protection

Subfield: Sociology and Political Science

Field: Social Sciences

Domain: Social Sciences

SDG: Industry, innovation and infrastructure

Open Access status: bronze

OpenAlex ID: W4409323729

FWCI:

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Related to: 10