The main idea behind this data sharing of to increase fair competition between providers and support innovative ideas and new revolutionary products for customers.
You must have also heard PSD2 (second Payment Service Directive) which basically is a EU directive that enables customer and SME to have greater control on their financial data.
For customer it means:
You must have also heard PSD2 (second Payment Service Directive) which basically is a EU directive that enables customer and SME to have greater control on their financial data.
For customer it means:
- Better product offering, say an app providing him ability to compare products across banks.
- Better products to provide Personal Finance Management
- Single view of accounts from different providers/banks
- Product recommendation on basis of customer spending and earning patter (use of AI & Analytics etc is also possible)
- Small business will get tool to manage cash flow management and better options for overdraft.
- Easier, real-time and innovative payments options possible between regulated companies.
Its has been mandated for top nine UK Banks to participate in Open Banking.
On the technology side standardised REST API's are used for exchanging information.
There is lot more to understand and develop products using Open Banking framework.
Its said "Web Browsers software and http protocol made it possible sharing information to users across the world. A similar impact API's will make any application running on any device can interact with any other application, by simply using http protocol. IoT?"
Happy learning!