APIs power digital transformation. They are invaluable for any organization’s employees, partners, customers, and other stakeholders to gain access to applications, data, and business functionality across the enterprise. As it’s a critical component in any large enterprise, many of them have built internal and external API strategies within their organizations. This includes ensuring security throughout the API ecosystem.

We live in a global village today. For instance, raw materials of a product may originate from several countries, the product may be designed in one country but assembled in another country, and sold all over the world. Banking is an ideal example of the present day global reality. Data sharing practices in the banking industry used to be very conservative and restrictive, but they have significantly changed now. Open banking initiatives in Europe, UK, and Australia aim to share and open banking data with other banks and institutions.

Open banking is a game changer for the financial services industry in Australia. Securely opening up banking data in a standardized form with the intent of improving customer experiences is the main goal of the Consumer Data Right (CDR). This notion is backed by the Treasury and the Australian Competition and Consumer Commission (ACCC). The idea of opening up data through APIs to be consumed by accredited third parties may pose several security concerns to banks.