Impact of Open Banking Strategy and Fintech on Digital Transformation

Abstract

Digitalization in a number of financial sectors has forced the financial system to adapt to new standards of technological change. The current regulatory structure also made the financial system reevaluate its business strategies and its interactions with the market. These factors led to the creation of a new type of ecosystem-wide competition in the banking industry that had never been witnessed before. There is a lack of a comprehensive framework for the new ecosystem of banks and financial institutions, which would clarify strategic decisions and organizational structures within the new ecosystems as well as highlight the development lines of open innovation in the banking industry. The objective of this research was to evaluate the open banking strategy and fintech impacts on digital transformation. Empirical evidences collected from banking sector located in Dubai UAE. 102 bank branches were approached to collect data using a descriptive research. A valid sample of 201 employees used for data analysis. SmartPLS 4 software used to measure the hypothesized model. Significant relationships between the variables were found in the results. Additionally, this research is regarded as a fantastic resource for financial knowledge for experts, bankers, professionals, and academics interested in this sector.