Open Banking
GeneralDefinition
Open Banking is the practice of banks and other account providers exposing customer account and payment data to third-party providers (TPPs) via secure APIs, with the customer's consent. It enables account information services (e.g. aggregation, lending decisions) and payment initiation services (e.g. Pay by Bank) without sharing login credentials. Regulated in the UK by the CMA Order and FCA, in the EU by PSD2, and in other jurisdictions by local frameworks (e.g. CDR in Australia, Section 1033 in the US).
Related Terms
AIS
Account Information ServicesAccount Information Services allow third-party providers to access account data (such as balances an...
PIS
Payment Initiation ServicesPayment Initiation Services are services that allow a third-party provider to initiate payments from...
TPP
Third Party ProviderThird Party Providers are organisations or natural persons that use APIs developed to Standards to a...
ASPSP
Account Servicing Payment Service ProviderAccount Servicing Payment Service Providers provide and maintain payment accounts for payers as defi...
PSD2
Payment Services Directive 2The Payment Services Directive 2015/2366, as amended or updated from time to time, including the ass...
API
Application Programming InterfaceAn Application Programming Interface is a set of routines, protocols, and tools for building softwar...
Frequently Asked Questions
What is Open Banking?
Open Banking is the practice of banks and other account providers exposing customer account and payment data to third-party providers (TPPs) via secure APIs, with the customer's consent. It enables account information services (e.g. aggregation, lending decisions) and payment initiation services (e.g. Pay by Bank) without sharing login credentials. Regulated in the UK by the CMA Order and FCA, in the EU by PSD2, and in other jurisdictions by local frameworks (e.g. CDR in Australia, Section 1033 in the US).
What does Open Banking stand for in Open Banking?
Open Banking is a key term in the Open Banking ecosystem. Open Banking is the practice of banks and other account providers exposing customer account and payment data to third-party providers (TPPs) via secure APIs, with the customer's consent. It enables account information services (e.g. aggregation, lending decisions) and payment initiation services (e.g. Pay by Bank) without sharing login credentials. Regulated in the UK by the CMA Order and FCA, in the EU by PSD2, and in other jurisdictions by local frameworks (e.g. CDR in Australia, Section 1033 in the US).
More General Terms
Embedded Banking
Embedded banking is the integration of banking services—such as accounts, payments, and cards—into n...
Embedded Finance
Embedded finance is the integration of financial services—payments, banking, lending, insurance, car...
Open Banking Ecosystem
The Open Banking Ecosystem refers to all the elements that facilitate the operation of Open Banking....
Open Banking Services
The Open Banking services provided by Open Banking Limited to Participants, including but not limite...
Open Finance
Open Finance is the extension of Open Banking-like data sharing and third party access to a wider ra...
Participant
An API Provider, API User, ASPSP, or TPP that currently participates in the Open Banking Ecosystem. ...
Explore More Open Banking Resources
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