BANKING
A COMPREHENSIVE GUIDE TO OPEN BANKING : TECHNOLOGY AND BEYOND
WRITTEN BY : DERIN CAG
An in-depth analysis of open banking from a fintech perspective , including expert insights , along with the benefits and drawbacks of the technology
Open banking is one of the most significant changes to the financial services sector in a generation . But what does it actually mean ? And how can businesses make sure they are ready for it ?
This feature article will answer those questions and more . We ' ll start by sharing the definition of open banking and then explore what fintechs can do to prepare for it .
What is open banking ? Open banking is a regulation-driven initiative that requires banks to open their APIs ( Application Programming Interfaces ) to third-party providers . " At a simple level , it means enabling APIs to share your financial data with the third parties you want to share it with , in a compliant and standardised way ," said Herpreet Oberoi , Vice President of Customer Success at Infostretch .
" Open banking is smart public policy . It has contributed to the UK becoming a leader in bank innovation and successful fintech innovation ," added Bill Verhelle , founder and CEO of QuickFi . This technology allows those providers – including fintechs , aggregators and others – to build products and services that interact with bank customers ' data .