AsianBankingFinance: Open APIs threats
Security measures and user protection
From a systems perspective, open APIs mean that a new communications path is being established to link the information systems of financial institutions with the outside world. This brings new risks including data leaks, data fraud, and illicit transactions. There is also the possibility that data relating to user account information and settlement instructions will be exposed to the risks of leaks, tampering, and fraud via handling by TPPs.
Many banks are already showing interest in this approach, with results from a recent Celent survey of senior banking executives stating nearly 40% of banks are using or actively investigating platforms. The platform approach has clear benefits – but the threat from big tech means banks will need to think carefully about whether they build these platforms themselves or integrate with an already established platform....