Open banking was initially developed in the UK regulation to foster competition in banking through the spread, under consent, of client data amongst competitors. Today, it is regulated in several of the most relevant banking jurisdictions. Despite its growing relevance, consensus about the...

Open banking is a policy initiative that encourages lending market competition by allowing borrowers to freely share data with any financial institutions. We investigate resource allocation efficiency under open banking. In our setting, banks compete in common-value auctions where they obtain...