On the surface, an open banking framework in the US like the one proposed for the UK appears beneficial to today’s API providers. If such a framework was widely adopted, API providers would see overhead cost reductions and product improvement, as they would no longer need to support the multitude of proprietary banking system that exist today. Additionally, because US financial institutions would no longer need to support multiple APIs, an open framework would de-risk the possibility for API providers that their product does not become the industry standard. However, this de-risking is a double-edged sword and creates strategic problems for today’s providers. 

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