Open Banking APIs
Open Banking APIs are standardized application programming interfaces that enable secure data sharing and payment initiation between banks and third-party providers (TPPs) like fintech apps. They allow customers to grant permission for TPPs to access their financial data (e.g., account balances, transactions) or initiate payments directly from their bank accounts. This technology is typically regulated under frameworks like PSD2 in Europe or similar initiatives globally to promote competition and innovation in financial services.
Developers should learn Open Banking APIs when building fintech applications that require access to banking data or payment capabilities, such as personal finance management tools, lending platforms, or payment gateways. They are essential for creating secure, compliant financial services that integrate with multiple banks without requiring direct partnerships with each institution, reducing development complexity and enabling faster market entry.