The Reality of Open Banking in Developing Countries: An Analytical Study of the Case of Algeria

Abstract

This study aims to analyse the limits of implementing the open banking model in developing countries, within the context of the rapid transformations affecting the financial sector due to digitalization and the growing role of financial technology. The research is driven by a central problem that seeks to identify the structural, regulatory, and technological constraints that hinder the adoption of this model, while explaining the existing gap between developed and developing countries in this field.

The study adopts a descriptive-analytical approach, based on a review of recent literature and the analysis of a set of comparative indicators related to regulatory frameworks, the level of digital infrastructure development, and the degree of FinTech adoption. This is conducted through selected case studies from developed countries (the United Kingdom, the European Union, and Australia) and selected Arab countries (Saudi Arabia and Bahrain).

The findings reveal that the successful implementation of open banking is strongly associated with the level of maturity of the digital financial ecosystem, particularly in terms of clear regulatory frameworks, advanced technological infrastructure, and an active FinTech ecosystem. The results also highlight a significant gap in adoption levels, mainly due to limited digital readiness, lack of technical expertise, and challenges related to data security and protection in developing countries.