How does open banking work?

Open banking is a concept that creates an ecosystem where banks, financial institutions, and consumers can share information in a secure and transparent way. It involves the use of open application programming interfaces (APIs) that link the data that is stored in the banks' systems with third-party providers of financial services, such as fintech companies. This allows for personalized financial services, such as budgeting applications, to be developed for customers. Openc banking also enables consumers to grant access to their financial data to third-party providers, allowing for more informed decision making and better financial management. Open banking offers greater convenience and allows for more competition in the financial services sector.

This mind map was published on 22 May 2023 and has been viewed 69 times.