Open banking

Open banking is a framework that allows banks to share customer financial data securely with third-party providers through APIs, usually under regulatory requirements and with the customer’s consent. It gives consumers access to a wider range of financial products and services based on their own financial data.

Example

With open banking, a customer can allow a personal finance app to access bank account data. The app can then analyze spending habits, track expenses, and provide budgeting advice. It can also help the customer compare loan offers or investment options using that data. For financial institutions, open banking creates a more competitive market and supports collaboration on new services.