• Seema Menaria
• Dr. Ganga Singh Chouhan

Open Banking is redefining the financial ecosystem by facilitating innovation, fostering consumer-centric design, and promoting competition through APIs and data sharing. However, the transition to Open Banking presents serious challenges related to data privacy, cybersecurity, and stakeholder trust. This research offers insight into the potential of blockchain technology for Open Banking by overcoming challenges of data privacy, enhancing scalability, and improving customer experience. The study describes a hybrid framework capable of supporting Open Banking APIs with smart contracts, distributed identity management, and tamperproof audit trails to streamline consent mechanisms. A performance and capability analysis was conducted against traditional systems by comparing available sandbox Open Banking APIs and public Ethereum blockchains. Performance was summarized based on four performance indicators: data integrity, user control, latency, and transaction throughput. The findings suggest that blockchain as a data storage method improves transparency and trust, decreased reliance on third parties, and improved compliance accountability for financial institutions. Smart contracts allow for automated transactional consent paths for users alongside immutable logs that deepen auditability. The findings also demonstrated how Layer 2 solutions could be employed to address scalability and custodian limits while maintaining security. Sentiment analysis on consumer review datasets showed improved user trust in decentralized banking products. The implications from this study have direct implications for regulators, banks, fintech product developers, and policymakers in a practical, secure, and innovative model for how to engage with digital finance in the future. As proposed, the framework serves as a foundation to integrate decentralized technologies in Open Banking, creating a resilient and customer-centric financial ecosystem.

Open Banking, Blockchain, Cybersecurity, Smart Contracts, API Security, Financial Innovation, Customer Experience, Data Privacy, Decentralized Identity, FinTech Integration

"Revolutionizing Digital Finance: Blockchain Solutions for Scalable, Secure, and Customer-Friendly Open Banking Platforms", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.12, Issue 6, page no.162-172, June-2025, Available :http://www.jetir.org/papers/JETIRGW06027.pdf

"Revolutionizing Digital Finance: Blockchain Solutions for Scalable, Secure, and Customer-Friendly Open Banking Platforms", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.12, Issue 6, page no. pp162-172, June-2025, Available at : http://www.jetir.org/papers/JETIRGW06027.pdf