ABSTRACT
Open banking allows banks to share customer data through APIs (Application Programming Interface). Open banking has become a trend that has attracted much attention worldwide, reflecting the influence of Fintech on banking business. We call this trend the platformization of banking business. Some “one-stop” financial services, previously offered by banks, are decomposed and distributed into many institutions, forming a network of market participants with different functions and generating complex fund flows and risk-sharing patterns. At the core of platformization of banking business is the market allocation of economic factors such as funds, accounts, customers, data, technology, application scenes, and reputation. For platformization of banking business, it is necessary to “look through” the network of market participants to analyse how risks are transferred and shared, and to strengthen functional regulation. A significant risk is conflicting interests and incentive incompatibility between banks and cooperative institutions. Institutional regulation is also critical, regulating both banks and the cooperation between banks and other institutions.
