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

Open banking is a system that allows access and control of consumer banking and financial accounts through third - party applications.

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