Open Banking API explained in 3 gifs

Janis Graubins
2 min readSep 8, 2016

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After publishing my first post about PSD2 explained in 3 gifs, I received a lot of comments if I could explain how actually the Open Banking API will work in context of PSD2. Below I have outlined the three most important things.

How API works

API is a web based tool to easily access information, which is extracted from the core system. In case of Open Banking API that would mean that bank would expose information to the API, which can be accessed through specific functions. The only thing, which developers will need to do will be registering on the bank's API platform and receive a token, which later on will be used to recognise the developer — just like a policeman is carrying a badge or fireman a red hat.

Open Banking API to get the best deal

Opening Banking API will mean that the users will be able to get a better deal. Just imagine a case, where a person is client of Bank A, but not Bank B. Instead of accepting conditions for a loan from his bank, he could choose a deal from a bank to who he is not even a client. Developers will be able easily to compare deals and always provide the best deal to their app users. The users even will not have to sign a deal with the bank directly as that could be taken care by app developers themselves.

Access different information in one place

Another exciting thing is that consumers will be able to see different information about their account in one place — even if they have several banks. Eventually, that would allow developers to create apps, which have an comprehensive overview of the persons history and habits and automatically make recommendations. E.g., you just bought an trip to Bali — while you are away, app could recommend to freeze your gym membership.

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Janis Graubins

Senior Business Analyst at Verum Capital, Board Member at Notakey.