Open Finance
Open Finance is a financial ecosystem concept that extends the principles of Open Banking to a broader range of financial services, including investments, insurance, pensions, and more. It enables secure data sharing and interoperability between financial institutions, third-party providers, and consumers through APIs and standardized protocols. The goal is to foster innovation, competition, and consumer empowerment by allowing seamless access to financial data and services across different platforms.
Developers should learn Open Finance to build applications that integrate diverse financial services, such as personal finance management tools, investment platforms, or insurance comparison apps, leveraging APIs from multiple providers. It is particularly relevant for fintech projects aiming to enhance user experience through data aggregation, automated financial advice, or cross-service functionality. Understanding Open Finance is crucial for roles in banking, insurance, or regulatory technology where compliance with standards like PSD2 or FAPI is required.