Open Banking is an innovative and legislated financial services practice which gives consumers the option of sharing their personal information and financial data with accredited third parties, through the use of application programming interfaces (APIs). This creates an unprecedented ‘open’ network of shareable data between financial institutions, who hold consumer data, and service providers, who use the data to create new offerings under the express consent of the consumer.
Open Banking will change the way consumers and businesses interact with their finances, and increase the ease and efficiency of data sharing between financial institutions. Open Banking gives consumers more control over their financial data and makes it easier to share their data with companies they trust.
This efficient transfer of data will also make it easier for companies to offer new products and services, powered by a technical and regulatory framework to allow consumers to securely share their information in a secure manner. Open Banking is the future of financial services.