What is Open Banking?
In recent years, the UK banking and finance industry has taken strides with the objectives of encouraging competition amongst banks and improve customer satisfaction. The financial experts have been exploring ideas to innovate the current business model and abolish all barriers to smoothen the customer experience. Recognizing that, the industry came up with the concept of Open Banking in 2015 that is supposed to give greater control and insights into their financials. It came alongside with PSD2 or Second Payment Service Directive passed by the Council of the European Union
Under open banking, user data that has always been restricted with banks would now be shared through secured APIs. Open APIs will allow third-party developers to build useful products and services offering superior banking experience to consumers.
The whole concept of open banking is meant to offer better banking experience to users by offering ease of payment and financial transparency. Of course, open banking has to offer numerous benefits to users, banks, and third-party service providers; there are some challenges the industry has yet to overcome.
To know more about what is open banking and what all it has to offer, read the complete article here.
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