Open banking is a branch of financial technology.  

Open banking is a banking practice that provides third party financial service providers (TPPs) open access to consumer banking, transactions and other financial data from banks and non-bank financial institutions. This is done through the use of open Application Programming Interfaces (APIs).

APIs enable third-party businesses to build financial services for customers on top of bank data.


Open banking was made possible by the European Union’s Payment Service Directive (PSD2), which came into force in 2018 and into full effect in 2019.