Artem Lyashanov: Why Open Banking is Beneficial for Everyone

Open Banking is based on secure data exchange, but it is much more than just another technological shift. It is a signal of a global transformation of the relationship between people and their finances, a transition to a model where transparency and accessibility become the basic standard.

Artem Lyashanov, an expert in transactional business, analyzes five key areas in which Open Banking will leave its defining mark in the coming years.

How we begin to understand our own money

Open Banking is a change in the very philosophy of how we manage capital. Previously, data about your accounts was closed inside banks. Now you decide who can see it to provide you with better services.

Thanks to secure data exchange with proven services, you gain full control. Now you don’t need to go into three different applications to understand how much money you have.

You can see everything in one place:

• Analysis of daily expenses;

• Tracking of all accounts and cards;

• Convenient comparison of banking products in real time.

When you see clear analytics of your expenses, you automatically become more financially literate. You no longer ask yourself the question “where did the money go?”, because Open Banking turns dry numbers into understandable reports. This helps you make informed decisions and build a healthy relationship with your own budget.

The era of the same services for everyone is over. Now banks and fintech companies are competing to offer a service tailored specifically for you.
 
Previously, we often did not understand what was happening with our money between salaries. Now transparency is becoming the norm. When a person sees all his finances in real time, he becomes more confident. Open Banking makes money management as understandable and familiar as checking mail or social networks.

Artem Lyashanov

From analytics to automation

The data that becomes available thanks to Open Banking is the foundation for the operation of artificial intelligence (AI) algorithms. This combination transforms passive account monitoring into active wealth management.

Secure, real-time data exchange enables AI solutions to provide accurate recommendations. This can be both an analysis of consumption habits and the automation of routine operations, helping users make decisions based on facts, not assumptions.

The interaction of Open Banking and AI provides services that take into account the individual needs of each customer:

• Algorithms can independently allocate funds between accounts to maximize benefits or prepare for regular payments;

• AI identifies inefficient use of funds and offers more affordable financial products;

• Automated transaction processing and intelligent support free up human resources for more complex tasks.

Ultimately, this combination of technologies improves the customer experience by providing real-time support and helping businesses and individuals manage their financial strategies with more confidence.

Artem Lyashanov

On adaptation

To remain relevant, banks need to integrate Open Banking into their strategy rather than resisting change. Collaboration with fintechs and third-party providers allows banks to go beyond simply storing funds.

Key areas of development:

• Creating niche products;

• Partner ecosystems. Joining forces with technology companies to quickly implement innovations;

• Improving customer experience.

Those financial institutions that choose the path of openness will be able to lead digital transformation and strengthen their positions in an increasingly dense market.

Control, identity and security

Open Banking transforms not only the technical infrastructure, but also the very principles of financial relations. Three fundamental elements underlie this change: transparency, control and digital identification.

• From transparency to informed decisions

Thanks to Open Banking, the user for the first time gets a holistic view of his financial situation. This allows you to not only see your balance, but also deeply analyze spending patterns, compare products from different institutions in real time, and make decisions based on facts. Such transparency makes the system accountable to the client.

• Full control over data

The key principle is data ownership. The client decides who to grant access to information, and most importantly, can revoke this access at any time. This creates a new culture of responsibility.

• Digital identity and accessibility

Modern digital identification solutions are replacing outdated paper checks. This not only speeds up processes, but also expands access to financial services for a wider range of people. No more spending days on verification, digital identity allows you to become part of the banking system instantly and without unnecessary barriers.

• New security standards

Security in Open Banking is based on advanced cryptography and multi-factor authentication. The implementation of unified security standards allows banks and fintechs to work together securely, minimizing the risks of data leakage or identity theft. This increases the confidence of all market participants in the reliability of each transaction.

What is Open Banking really?

To understand Open Banking not as a technical term, but as a phenomenon, it is worth taking a step back and seeing the entire system as a whole.

For decades, the banking model was built on asymmetry: the bank knew everything about the client, while the client knew only what the bank considered necessary to show about his money. A statement once a month, a queue at the branch, closed APIs — all this reflected the old model. Data about a person’s financial behavior was treated as an asset of the bank, not the person himself.

The key idea is that the data belongs to whom it concerns. You, as a client, have the right to decide who and to what extent can see your financial information. It is not the bank that decides whether to trust the third party. You yourself provide or withdraw consent in real time.

Technically, this is implemented through open APIs — standardized entry points through which banks are obliged to transfer data to authorized providers. Four key players interact with each other.

For Ukraine, where digital transformation is taking place rapidly even in wartime, Open Banking is also an opportunity to build a modern financial ecosystem without the burden of outdated systems. A clean slate on which you can immediately write according to new rules.

Artem Lyashanov