Open APIs in regional banks: Challenges and implementation directions

The relevance . In the context of digitalisation of the banking sector, standartised Open API interfaces act as a catalyst for innovation, significantly transforming traditional banking services. This is especially pertinent for regional banks, which need to adapt to new technological realities and increased competition from FinTech companies. The objective of the study is to analyse the implementation impact of API on the activities of regional banks and develop directions for their integration into existing business processes. Methodology . The study uses methods of expert assessments, comparative analysis and synthesis of API implementation experience in the banking sector. The analysis of costs related to API implementation and areas contributing to the optimization of operating expenses were identified. The results reveal, that API integration allows regional banks to expand their range of services provided and improve operational efficiency. However, the implementation process may encounter certain challenges, namely, the need to modernise the IT infrastructure, ensure a high level of cybersecurity and comply with current regulatory requirements. The article suggests a few directions for the implementation and development of APIs, involving the idea of establishing partnerships with FinTech companies, a step-by-step integration approach of APIs, including data monetisation and the formation of business models based on API platforms. The findings can be of use in the formation of digital transformation strategies for regional banks and the development of initiatives in the field of Open APIs.