Measuring the impact of Open Banking on Financial Behaviour of Consumers: The mediating role of Financial Literacy

The rapid evolution of Open Banking and FinTech applications has transformed the financial services landscape, offering consumers greater control over their financial data and decision-making. This study examines the impact of Open Banking-enabled FinTech apps on consumer financial behaviour, with financial literacy as a mediating variable. While existing literature explores Open Banking’s technical and regulatory aspects, limited research empirically evaluates its influence on financial literacy and behavioural changes. This study bridges this gap by identifying key variables associated with Open Banking adoption, financial literacy levels, and consumer financial decision-making. The study employs quantitative data analysis, incorporating statistical techniques such as regression analysis and factor analysis to test these relationships. Findings from this research are expected to provide valuable insights into how Open Banking and FinTech innovations contribute to financial literacy development and behavioural shifts, particularly in emerging economies. The study also sheds light on potential barriers to adoption, such as trust and data security concerns. By addressing this research gap, the study contributes to the broader discourse on financial inclusion, consumer empowerment, and the role of technology in shaping modern financial behaviours. The insights derived can guide policymakers, financial institutions, and FinTech developers in designing user-centric solutions that enhance financial literacy and responsible financial decision-making.