What is open banking?

Open Banking is a system where banks and financial institutions allow third-party providers to access customer financial data securely, with the customer's consent, through the use of application programming interfaces (APIs). This enables customers to use new financial services and products, such as budgeting apps or payment services, that can integrate with their bank accounts. Open Banking aims to increase competition and innovation in the financial sector while giving consumers more control over their financial data. Security and privacy are key priorities, and regulations such as PSD2 in Europe set strict standards for how data is accessed and shared.