WHAT IS OPEN BANKING?

Open Banking is a way of allowing consumers and corporates to share access to their bank accounts with third party providers (<a href="/glossarycollection/third-party-provider" style="color:#48277C;" target="_blank" title="Third-Party Provider"><u>TPP</u></a>s). After obtaining the customer's explicit permission, TPPs can access the user's account transaction history and create payments on the customer's behalf. <br/><br/>

Open Banking makes this process secure, standardised and reliable. The TPPs are answerable to their national financial regulators.<br/><br/>

Open Banking encourages the use of standardised Application Programming Interface (<a href="/glossarycollection/application-programming-interface" style="color:#48277C;" target="_blank" title="Application Programming Interface"><u>API</u></a>) to harmonise access mechanisms and technologies.<br/><br/>

TPPs in Europe currently use the account provider's own authentication mechanism to authenticate the access. Once acquired, the TPP can see the account data and provide their Open Banking payment services and products.<br/><br/>

In our Resource Centre you can find more detail in the sections on Open Banking Business Benefits and Open Banking Use Cases.