How will open banking shape the future of financial services?.

Open banking refers to the practice of sharing financial data between banks and third-party providers through secure application programming interfaces (APIs). This trend is reshaping the financial landscape by enabling more personalized banking experiences and fostering innovation in the fintech sector.

Key Facts

• Open banking regulations were first introduced in the EU in 2018 with PSD2.
• Over 50% of consumers are interested in using open banking services.
• The global open banking market is projected to reach $43 billion by 2026.
• More than 200 banks globally are now offering open banking APIs.

Examples or Use Cases

• Personal Finance Management: Apps that aggregate data from multiple accounts help users manage budgets effectively.
• Lending Platforms: Faster loan approvals through real-time data access streamline the lending process.

FAQs

• What is open banking? Open banking allows third-party providers to access bank data, enabling new financial services.
• Is open banking safe? Yes, it uses secure APIs and requires customer consent for data sharing.