Open Banking

Open Banking is a financial framework that allows banks to securely share customer data with authorised third-party providers through standardised application programming interfaces, or APIs. Instead of financial data being locked inside individual banks, customers can choose to grant permission for regulated apps and services to access specific information such as account balances, transaction histories, or payment capabilities.

The core idea behind Open Banking is customer control. Data belongs to the individual or business, not the bank, and sharing only happens with explicit consent. That consent is limited in scope, time-bound, and revocable at any moment, with strong security and regulatory oversight to protect users.

By enabling safe data sharing, Open Banking unlocks a new generation of financial tools. These include budgeting and money management apps, account aggregation dashboards, faster and cheaper payments, personalised lending decisions, and services that compare products in real time. For businesses, it can simplify accounting, cash-flow forecasting, and payment reconciliation.

In practice, Open Banking increases competition and innovation in the financial sector. It lowers barriers for new entrants, encourages better customer experiences, and helps people and businesses make more informed financial decisions, all while maintaining high standards of privacy and security.