Open banking is a system that allows access and control of consumer banking and financial accounts through third - party applications.
Open Banking
Understanding open banking
Before PSD2
Under open banking, banks can access and control their
personal and financial data to third-party service providers
(FinTech startups and online financial service providers.)
After PSD2
Customers usually need to give some kind of
consent to the bank to allow access, such as
selecting a checkbox on the online app’s terms
of service screen.
Importance of open banking
01
02
Open banking has the potential to reconstruct the competitive environment and consumer experience in the banking industry.
03
Open banking increases the likelihood of promising benefits and significant risks to consumers as more data is shared more widely
Why does open banking need a blockchain?
Blockchain enhances the bank’s
data protection and security, minimizing
the risks and potential debt from
security breaches and backing
The blockchain-based platform supports the aggregation
and storage of industy-wide data that can rely on the
development of new products and services such an loans,
investment packages, pension plans, etc, that fit the
customer’s financial condition.
Create a platform for third parties
to securely interact with banks and
data without having direct access
to the core financial system
Blockchain can build a new digital
financial ecosystem by layering
distributed ledger technology on top
of the legacy banking API.
