Open Banking vs Traditional Banking APIs

Developers should learn Open Banking to build fintech applications that integrate with banking systems, such as personal finance management tools, payment initiation services, and account aggregation platforms meets developers should learn and use traditional banking apis when building applications that need to interact with banking systems, such as for automating payments, retrieving transaction histories, or managing accounts programmatically. Here's our take.

Open Banking

Nice Pick

Developers should learn Open Banking to build fintech applications that integrate with banking systems, such as personal finance management tools, payment initiation services, and account aggregation platforms

Pros

• It's essential for roles in financial technology, regulatory compliance, and API-driven banking solutions, enabling secure data sharing and new business models in the finance sector
• Related to: api-design, oauth2

Cons

• Specific tradeoffs depend on your use case

Traditional Banking APIs

Developers should learn and use Traditional Banking APIs when building applications that need to interact with banking systems, such as for automating payments, retrieving transaction histories, or managing accounts programmatically

Pros

• This is essential for fintech solutions, enterprise resource planning (ERP) systems, and any software requiring real-time financial data integration, as it provides a reliable and regulated way to access banking services without manual intervention
• Related to: rest-api, soap-api

Cons

• Specific tradeoffs depend on your use case

The Verdict

These tools serve different purposes. Open Banking is a concept while Traditional Banking APIs is a platform. We picked Open Banking based on overall popularity, but your choice depends on what you're building.

The Bottom Line

Open Banking wins

Based on overall popularity. Open Banking is more widely used, but Traditional Banking APIs excels in its own space.