Open Banking
Open Banking is a financial services platform that enables secure data sharing between banks and third-party providers (TPPs) through standardized APIs. It allows customers to grant permission for their financial data to be accessed by authorized apps and services, fostering innovation in banking, payments, and personal finance management. This ecosystem is built on regulatory frameworks like PSD2 in Europe and similar initiatives globally, promoting competition and consumer choice.
Developers should learn Open Banking to build fintech applications that integrate with banking systems, such as payment initiation services, account aggregation tools, or personal finance management apps. It's essential for roles in financial technology, banking software development, or regulatory compliance, as it provides a standardized way to access financial data and initiate transactions securely. Use cases include creating budgeting apps, facilitating instant payments, or developing credit scoring models using transaction data.