Cybersecurity in Open Banking: Securing APIs and Protecting Customer Data in a Connected World

Abstract

Open banking is one of the most revolutionary disruptions within the financial sector because of Application Programming Interface integration that enhances service delivery. But this new world paradigm has created new important cybersecurity challenges such as data leakage and unauthorized access. For this, the current research evaluates the effectiveness of security measures including multi-factor authentication, OAuth 2.0, Transport Layer Security and API gateway to handle these risks. From the case studies and compliance analysis of these frameworks, this study establishes their use, effectiveness in preventing breaches, and compliance. The implications of the results are twofold: It is proposed that the multi-layer security architecture should be in place in the future as the two technologies are integrated to address new threats. In here, one gets real considerations towards safe and radical open banking.