Open Banking

Definition

Open Banking is an architecture of Financial Service provision that aims to enable third-parties to access client data and use them to build applications and services distinct from those offered by the primary bank of the client.

Adoption

• The European Parliament adopted a revised Payment Services Directive II, known as PSD2. The new rules included aims to promote the development and use of innovative online and mobile payments through open banking.
• The United Kingdom Competition and Markets Authority (CMA) issued a ruling that required the nine-biggest UK banks to allow licensed startups direct access to their data down to the level of transaction account transactions.
• An open banking project was launched in Australia as part of the Consumer Data Rights project by the Australian Treasury department and Australian Competition and Consumer Commission
• The Open Banking Nigeria initiative aims to drive adoption of common API standards

See also

• Fintech
• Peer-to-peer Lending
• Open Source Federation Platforms