Open banking
Open banking is the concept where banks, mandated by regulation like PSD2, open customer data and payment functions to third parties via standardised APIs.
Open banking is the biggest change to financial services since internet banking. Classical: data locked in the bank. Open banking: customers can share data with third parties (accounting software, comparators, budgeting apps) via APIs, with explicit consent. PSD2 mandated this in the EU; equivalent regulation followed in UK, Australia and parts of Asia.
Example
Moss (business finance platform) retrieves daily transaction data from the business ING account via open banking APIs, auto-categorises, and matches invoices. Previously: manual CSV exports. Now: realtime insight effortlessly.
Frequently asked questions
Is open banking secure?
Cryptographically yes — OAuth2, TLS, SCA. Real risk: the data sharing itself. Always check which third party sees what and revoke access when no longer needed.
Related terms
Further reading
- → Our service: Fintech sector