How Open Banking and AI Drive Financial Innovation: Evidence from the Romanian Banking Sector
How Open Banking and AI Drive Financial Innovation: Evidence from the Romanian Banking Sector

Summary/Abstract: The paper examines the impact of Open Banking and Artificial Intelligence on financial innovation in the Romanian banking industry, underscoring their contribution in enhancing operational efficiency, customer experience, fraud prevention and overall financial performance. By using an analytical approach, the study integrates statistical analysis on digitalization trends within the Romanian banking system and case studies of AI-driven solutions implemented by leading financial institutions. The findings suggest that AI technologies and Open Banking ecosystems contribute significantly to improving banking operations, reducing transaction costs and optimizing resource allocation. Moreover, AI-enhanced user experience and real-time data analytics are expected to boost customer satisfaction, increase financial accessibility and security, while also strengthening fraud detection and risk management measures. From a financial perspective, the integration of AI and Open Banking is projected to optimize financial performance in the banking sector, advance digital transaction volumes and lower operational risks. This research contributes to existing literature by providing empirical insights on the impact of Open Banking and AI on a developing European market. It offers a comprehensive analysis of Romania's banking sector, serving as a reference for similar markets undergoing digital transformation and provides valuable insights for banking institutions, policymakers and fintech stakeholders, particularly in developing economies.

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