FinTech
What is open banking?
Open banking is a regulatory and technology framework that allows third-party financial services to access bank data through secure APIs — with customer consent. Instead of banks being the sole gateway to your financial data, open banking enables fintech apps to read account balances, initiate payments, and build services on top of traditional banking infrastructure.
Key Considerations
- Regulation-driven in Europe (PSD2) and the UK, market-driven in the US
- Customer consent and data security are non-negotiable foundations
- Enables products like account aggregation, instant lending decisions, and payment initiation
- Banks that embrace it gain ecosystem advantages; those that resist lose relevance