Open banking is a system where banks and other financial institutions allow third-party developers to access their customers’ financial data with their consent. This access is provided through application programming interfaces (APIs).
The essence of ‘Open banking’ is customer centric: integration of financial data and ownership of the customer over his financial data.
Sarah Häger, CCO at Enable Banking
In Simpler Terms
Let’s say you’re using a budgeting app to track your spending. With open banking, this app can securely access your bank account data (only with your permission, of course) to give you a real-time view of your finances.
In this scenario, open banking is a bridge connecting your bank account to other financial tools and services. Want to compare loans from different providers without visiting ten different websites? Open banking can do that. Need to manage all your accounts in one place? Open banking makes it possible.
