As the world progresses, the financial sector becomes increasingly interconnected with the digital world. As a consequence, any person, companies, and countries who are following the process of financial developments must already know about open banking. Truly, what is open banking? Quoted from Investopedia, open banking correlates with open bank data which the system provides a third-party services to access an open source from customer banking to financial data. Receiving data from credible sources, open banking allows official and non-official institutions to input any data with Application Programming Interface (API) services. Further changing the financial scene, open banking counts as an innovation that creates a larger connectivity through data sourcing and improves efficiency in financial activities within customers and companies. Open Banking in the Indonesian scene The term and importance of knowing open banking in the finance industry reached the Indonesian economic landscape. In the journey of digitizing financial industries in Indonesia, Bank Indonesia as an official institution created Indonesia Payment Systems Blueprint 2025 which navigates the payment system industry. Since 2019, open banking was one of the visions which Bank Indonesia had put into reality by thoroughly developing this system and providing the technology in the finance or payment industry. Not fully known by the public, open banking systems are one of the reasons we can enjoy the convenient and fast payments through QRIS as one of the examples of use of the service provided. Open banking systems serve a crucial role in strengthening the whole financial system by enhancing the needs of risk management, consumer protection, and consent. Thus, it is one of the positive impacts to redirect traditional transactions into more controlled data through an open banking system. Essentially, open banking also benefits institutions and companies to maintain customer retention and increase financial literacy throughout the nation. Customer retention and loyalty to a brand will be much more manageable through an open banking system due to more personalized, convenient, better interest rates, more advanced security protocols, and transparency in the financial services. Hence, Indonesian customer retention to open banking finance applications is more preferable than Indonesia. People rather use more modern solutions than conventional bank practices due to more leniency and security. But, it must be said also that these open banking systems in Indonesia are mostly used and targeted into Generation Y and Z who are much more digital natives than the previous generations. This also connects with the openness of a certain age group in financial and digital literacy. While open banking is still developed to perfection and attracts more youngsters to manage their finances more accurately and safely, it does have a sum field for improvements. Especially in Indonesia, where regulations and customer protections don't abide with profitable goals. Open banking method use now still becomes an issue between maintaining financial growth and fixing unreliability. Sources: - Bank Indonesia: Indonesia Payment Systems Blueprint 2025 - Brankas: Investing in Open Banking Solutions for Growth in Indonesia and Beyond (Part 2) - Finansial Bisnis: Dorong Digitalisasi Sektor Keuangan, Bank Indonesia Bocorkan Manfaatnya - Investopedia: Open Banking: Definition, How It Works, and Risks