Time for transformation: the role of AI in Open Banking

Artificial Intelligence (AI) is rapidly transforming industries across the globe, and the financial services sector is no exception. In Open Banking, AI's potential to reshape customer experiences, streamline operations, and foster inclusion is becoming increasingly clear. But how will AI’s capabilities impact Open Banking specifically, and what role does agentic AI – systems capable of autonomous decision-making – play in this transformation?

As financial institutions embrace these technologies, the next few years are set to be pivotal. Experts Richard Caven, Banking Specialist at AWS, Nicola Breyer, Open Finance Advisor & Expert and Dr Joanna Michalska, Global Head - Payments Regulatory Reporting, JP Morgan, who will be speaking at this year’s Open Banking Expo, share their insights on how AI is evolving within Open Banking, the impact of agentic AI and what safeguards must be in place to ensure fairness and transparency.

The transformative impact of AI on Open Banking

Nicola Breyer, an expert in helping banks, fintechs, and investors navigate regulatory change, with a focus on Open Finance readiness, leadership advisory, and agentic AI in financial services, believes AI could significantly improve Open Banking, particularly by creating a predictive financial ecosystem.

'AI will turn Open Banking from a data-sharing tool into a predictive financial ecosystem, helping consumers and businesses anticipate their next move rather than just track the last one, and move to data-based execution,' she explains. 'AI will transform Open Banking from a framework for data sharing into a predictive, value-generating financial ecosystem. Instead of simply consolidating account data, AI can analyse transaction patterns better and faster than machine learning in the past and detect anomalies, while providing actionable insights.

For example, an SME could receive an AI-generated forecast of cash flow shortages weeks in advance, along with suggested actions like adjusting supplier payments or optimising short-term financing. Consumers could see AI automatically suggesting personalised savings strategies based on spending habits, seasonal expenses or upcoming life events. The shift from reactive to anticipatory financial management could redefine how financial products are used.'

 

Richard Caven adds that Generative AI and Agentic AI are already upgrading customer user experiences by offering hyper-personalised services.

'We're witnessing AI transform banking from transactional to truly personal. Generative AI and Agentic AI are already revolutionising how customers interact with financial services, redefining the entire customer experience through hyper-personalisation that was impossible just a few months ago,' Richard says.

'AI is automating customer onboarding while detecting fraud patterns and financial crime in real-time. The expanded data sharing enabled by Open Banking turbocharges these capabilities, creating a protective network that benefits everyone.'

 

Dr Joanna Michalska agrees that AI offers used responsibly, GenerativeAI can also foster a greater degree of trust across Open Banking.

'AI can personalise services, predict risks, and expand access, but the real challenge is ensuring this happens safely, responsibly, and at the right pace,' Joanna says.

'Speed of implementation matters, but it must be matched by the speed of understanding and governance. AI safety depends on having the right structures in place: clear accountability, robust oversight, and decision-makers with genuine AI literacy. People need to understand what these systems do, what risks they create and whether they are a source of value or exposure. The organisations that will move fastest and safest are those where accountability and comprehension are built into the design, where humans lead and AI accelerates responsibly within that framework.'

 

Agentic AI: revolutionising consumer interaction with financial products

As AI continues to evolve, agentic AI is set to transform how consumers interact with financial products, offering unprecedented convenience and personalisation in managing their financial lives.

Richard Caven emphasises the broader potential of agentic AI to simplify customer journeys, especially when financial products are seamlessly integrated into other aspects of consumers’ lives, such as through the connected car experience.

'Open Banking extends financial products into relevant moments in customers' lives,' Richard explains. 'Consider the connected car experience – from financing and insurance to servicing, subscriptions, and fuel payments – AI agents now seamlessly manage these relationships while the customer simply enjoys their vehicle. This transforms what was once a maze of disjointed financial transactions into cohesive lifestyle experiences, increasing customer satisfaction and engagement."

Nicola sees agentic AI as a game-changer for consumer interactions with financial products.

'Agentic AI lets consumers delegate complex financial decisions, taking care of their lives and letting an agent optimise their finances based on conversations – effectively giving everyone a personal, always-on financial strategist,' she explains. 'This agent will interact with financial service providers. We can also foresee agent-to-agent communication, or a customer interacting with their financial advisor’s agent.'

Agentic AI enables a shift from manual engagement to strategic delegation. 'Today, we can ask genAI many things, including financial advice. Agentic moves to execution. It becomes the interface between the customer and the market. The agent can move money, optimise interest, automatically allocate spare cash into a diversified investment portfolio, or adjust insurance coverage in response to life changes.'

Nicola adds that as agentic AI becomes more integrated into financial services, it could even reshape the financial advice industry, potentially moving from commission-based models to subscription-based ones. 'The broader impact would be a shift in how financial institutions engage with their customers, providing continuous, automated financial assistance.'

Joanna echoes the sentiments, but remains cautious as to letting AI take full ownership of decision-making: 'Agentic AI has the potential to act as a financial co-pilot, but humans must remain in the lead,' Joanna explains. 'The opportunity lies in using AI as an acceleration tool that supports human judgment rather than replaces it. Safe speed comes from structure: people who understand how these systems learn, decide, and perform, and leadership that is accountable for outcomes. Oversight must be active and responsibility clearly defined so that when AI acts, governance is not optional. True progress means moving fast, but always with control.'

Safeguarding ethics, fairness and transparency in AI-driven Open Banking

With AI’s increasing role in Open Banking, it is crucial to ensure that Generative and Agentic AI systems are used responsibly – ensuring ethical, fair, and transparent safeguards are in place.

Joanna believes safeguards need to go well beyond technical audits. 'Ethical AI starts with culture, competence and clarity,' Joanna notes. 'It means equipping people at every level to understand AI systems, their limitations and their risks. AI literacy is essential for safety. Teams need the confidence to question outputs and recognise when something looks wrong. Safety and fairness must be built in from the start, supported by strong governance, clear accountability, and standards that make human oversight real and effective.'

Nicola emphasises that trust is key, and AI systems must be explainable and free from bias.

'Trust comes from transparency: explainable decisions, bias testing, and human oversight are non-negotiable, especially when serving vulnerable customers,' Nicola says. 'For example, transparent algorithms that explain why a loan application was accepted or declined. Continuous bias testing to prevent discrimination against certain demographics, professions, or income groups. Layered consent that explains in plain language how data will be used, particularly for vulnerable users, like the less digital population or individuals with limited financial literacy.'

In addition, Richard believes that responsible AI use is essential for mitigating unintended consequences.

'At AWS, we've placed Responsible AI at the core of our innovation strategy,' he notes. 'When teams build with responsibility embedded in their process, they make better decisions faster and deliver solutions customers genuinely trust. Our most successful banking customers embed these principles as both cultural compass and operational shield, creating guardrails that protect customers while enabling teams to move faster with confidence. This approach transforms risk management from a barrier to an accelerator of innovation. AWS is the first and only cloud provider to offer Automated Reasoning safeguard, which brings mathematical certainty to AI governance with up to 99% accuracy in identifying correct model responses to minimise hallucinations.'

The future of Open Banking: moving towards Open Finance and Open Data

AI will play a crucial role in the evolution of Open Banking into Open Finance, and eventually, Open Data ecosystems. Both Richard and Nicola agree that AI will be the key to unlocking value across fragmented data sources in banking, insurance, pensions, and beyond.

Richard comments: 'AI rapidly processes and analyses complex data sets from previously untapped data formats – voice, unstructured text, images – that have constrained organisations for decades, turning vast amounts of data that traditional systems simply couldn't process into actionable insights. It enables teams to innovate faster and empowers institutions to launch new products at unprecedented speed without compromising rigorous standards of quality and compliance.'

Nicola envisions a future where AI integrates data across multiple sectors, creating seamless financial experiences that span consumers’ entire lives. 'AI acts as the glue that connects siloed financial data and beyond,' she says. 'Open Banking covers accounts and payments; Open Finance extends to investments, pensions, and insurance; Open Data ecosystems could incorporate utilities, mobility, and health.'

'For example, AI could integrate banking data with energy usage to suggest optimal payment schedules or investment allocations, while pension contributions could adjust automatically based on projected cash flows or tax considerations.'

Regulatory challenges and ensuring compliance in AI-driven Open Banking

As AI continues to expand in Open Banking, regulatory challenges are bound to emerge, particularly regarding explainability, liability, and consumer consent. Nicola highlights the importance of regulators adapting frameworks to ensure that AI is used responsibly across the financial services industry.

'Regulators must define explainability, liability, and consent in ways that are flexible enough to allow innovation but strict enough to protect consumers,' Nicola warns. 'Key challenges include defining what ‘explainable AI’ means in practical terms for financial decisions and determining liability when autonomous agents make mistakes.'

These challenges will require collaboration between regulators and financial institutions to establish standards for AI use and ensure that consumer rights and data privacy are upheld.

Conclusion

The role of AI in Open Banking is set to undergo a significant transformation in the coming years, with the potential to revolutionise how consumers engage with financial products. From improving personalisation and streamlining financial decisions through agentic AI to promoting inclusion and fairness, AI is poised to be a central player in the future of Open Banking.

The transition from Open Banking to Open Finance – and ultimately Open Data ecosystems – will be shaped by AI’s capabilities. This evolution will also rely on careful consideration of AI’s impact on consumers, businesses, and regulators. These topics, including the future of AI in Open Banking, are explored in-depth at the Open Banking Expo taking place at the Business Design Centre in London, on 21 & 22 October 2025, where industry leaders will discuss how AI is driving the next wave of financial services innovation and how it will continue to reshape the sector’s landscape.

For more information about the Open Banking Expo, visit www.openbankingexpo.com.

Editor's note: the article was drafted by PicPR using responses and insight from Richard Caven,  Banking Specialist, AWS, Nicola Breyer, Open Finance Advisor & Expert and Dr Joanna Michalska, Director, J.P. Morgan.

About Richard Caven

Richard Caven is a Worldwide Banking Specialist at AWS. He is responsible for the development and execution of strategic initiatives to help customers migrate to the cloud and drive their digital transformation journey. Richard joined AWS in 2018 from Barclays where he was a Managing Director and COO for the Global Treasury function.

About Open Banking Expo

Open Banking Expo is a global community of Open Banking and Open Finance executives responsible for digital transformation across the financial services sector. Open Banking Expo was founded by Kelly Stanley and Adam Cox.