Open Banking
Open Banking is a financial services concept that enables third-party developers to build applications and services around financial institutions through secure APIs. It allows customers to share their financial data with authorized third parties, promoting competition, innovation, and transparency in banking. This framework is often mandated by regulations like PSD2 in Europe, requiring banks to provide access to customer data with consent.
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. 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.