OPEN BANKING AND THE FINTECH ECOSYSTEM AS DRIVERS OF BANKING BUSINESS TRANSFORMATION IN THE DIGITAL ECONOMY

Abstract

The article examines the role of open banking and the FinTech ecosystem as key drivers of banking business transformation in the digital economy. The essence of open banking and the FinTech ecosystem is conceptualized as interconnected elements of the digital financial infrastructure that facilitate seamless data exchange, the development of innovative financial services, and the formation of new interaction models among financial market participants. The evolution of the open banking concept is analyzed, and its definitive role in enhancing market competition, expanding access to financial data, and fostering financial innovation is determined.
The study investigates the features of the FinTech ecosystem as a multi-level network of interaction among banking institutions, FinTech companies, technology providers, and consumers of financial services. The main directions of the digital transformation of the banking business are identified, including platformization, the development of remote banking services, the implementation of artificial intelligence technologies, big data analytics, and the reinforcement of cybersecurity measures.
Particular attention is devoted to assessing the regulatory framework for open banking in Ukraine and its direct impact on developing a competitive financial environment. The prospects for further integration of banking institutions into the FinTech ecosystem of the digital economy are substantiated through the development of open APIs, Banking-as-a-Service (BaaS) models, and platform-based business models. The research demonstrates that open banking and the FinTech ecosystem form the foundation for the structural transformation of the banking business, contributing to increased competitiveness, innovation, and customer-centricity.