An open banking system allows for a more efficient and competitive market, as customers are able to easily compare and switch between different financial services providers, and use different providers for different services.

For example, a customer can use one bank for their current account, and a different provider for their mortgage. It also allows for the development of new and innovative financial services, as third-party providers can use customer data to create personalized products and services.

Open banking is generally regulated by the central bank of the country, in the US is the Office of the Comptroller of the Currency (OCC) and in the UK, it's the Financial Conduct Authority (FCA).