November 10, 2022 – Adopting APIs represents the continuing evolution of banking distribution models. The question is, what type of technology ecosystem model should the U.S. adopt around these new APIs: one built on centralized regulatory mandates (open banking) or one built on collaboration with regulators and vendors (connected banking)?

This report discusses the difference between connected and open banking and how to build out a technology ecosystem in the context of connected banking. Aite-Novarica Group reviewed research from 2020 to 2022 and external articles to develop the findings and checklist. This report also uses the author’s experience and best practices that Aite-Novarica Group has observed in banking IT organizations.

Clients of Aite-Novarica Group’s Community Banking service can download this report and the corresponding charts.

This report mentions Amazon, Checkout.com, Microsoft, Plaid, Square. Stripe, and tridentsys.