📄 Abstract
The regulatory implementation of Open Banking regimes across global jurisdictions represents a structural policy intervention designed to dismantle incumbent banking monopolies, enhance market contestability, and accelerate financial innovation through mandated Application Programming Interface (API) data sharing. However, this transition from closed banking architectures to interoperable data ecosystems introduces a fundamental regulatory tension between promoting competitive market entry and safeguarding consumer welfare. This study develops a comprehensive empirical and institutional framework to evaluate how differing regulatory designs—spanning mandatory data-access directives (e.g., the European Union’s PSD2/PSD3 and the UK Open Banking Standard) and market-led frameworks—balance FinTech market penetration against systemic consumer risks. Utilizing a multi-jurisdictional panel dataset of banking and FinTech performance indicators alongside consumer dispute metrics, we quantify the impact of open data portability on banking fee compression, credit intermediation efficiency, Authorized Push Payment (APP) fraud incidence, and data privacy externalities. The empirical findings reveal that while standardized API mandates significantly reduce consumer switching costs and stimulate non-bank market entry, they exacerbate consumer vulnerability under asymmetric liability regimes where fraud loss burdens disproportionately fall upon retail users or front-end third-party providers (TPPs). Furthermore, econometric modeling indicates that regulatory frameworks incorporating standardized, revocable consent architectures paired with dynamic, tiered liability-sharing protocols achieve an optimal policy frontier—reducing anti-competitive market concentration by 24.3% while curtailing unauthorized transaction dispute latencies by 41.7%. These results provide central regulatory authorities, antitrust bodies, and financial conduct supervisors with actionable mechanisms to calibrate Open Finance policies that preserve systemic consumer trust without dampening competitive dynamism.
🏷️ Keywords
📚 How to Cite:
Vakhabov Bobur Alisherovich , EVALUATING OPEN BANKING REGULATIONS TO BALANCE MARKET COMPETITION AND FINANCIAL CONSUMER PROTECTION , Volume 14 , Issue 8, August 2026, International Journal of Asian Economic Light (JAEL) , Pages: 23 - 32 , DOI: https://doi.org/10.36713/epra28922