Open Banking

What is Open Banking?

Open banking is a financial services practice that allows banks to share customer data with third-party providers through secure APIs, with the customer’s consent. The aim is to foster innovation and competition by enabling third parties to offer new financial products and services. Open banking can improve the customer experience by providing more personalized financial management tools and options.

Benefits of Open Banking

• Enhanced Competition: Encourages new entrants to offer innovative financial solutions.
• Personalized Services: Enables more tailored financial products based on customer data.
• Better Financial Management: Helps consumers access integrated tools for managing their finances.

Related Terms and Concepts

API, financial technology (fintech), data sharing, customer consent