Open Banking is a revolutionary banking practice that offers non-bank financial institutions and third-party financial service providers access to consumer banking data. This can be done through APIs, which allow for the networking of customer accounts and data across several institutions, making it possible for customers to access services offered by third parties.

Open Banking has experienced significant growth in recent years, with 7 million consumers and SMEs using Open Banking services in January 2023, according to a report by Open Banking Limited. Third-party services can make use of Open Banking for account aggregation, payment initiation, identity verification, credit scoring, personal finance management, and fraud prevention.

Open Banking technology has the potential to revolutionize the support service sector and increase financial independence and agency for customers of services that utilize it. It is important for developers to ensure that their apps and services comply with relevant data protection laws and regulations and to implement robust security measures.

For a deeper dive into the real-world impact of open banking and explore how public acceptance has fuelled new interest in the placement of open banking frameworks within a continuing range of services, Our friends, and specialists in website and app design & development, Arch have put together a deep dive into the real-world impact of open banking. You can read their full blog on the link below.