Open banking refers to a system that allows individuals to securely share their financial data with authorised third-party providers through application programming interfaces (APIs).
It enables the exchange of financial information between different banks and financial institutions, providing consumers with a more comprehensive view of their finances and facilitating innovative services and products.
Learn more about Open Banking here.
Open Banking Example:
For example, let's say you have savings accounts with multiple banks in the UK. With open banking, you can use a trusted app or platform that integrates with various banks and securely consolidates your account information in one place.
This allows you to view all your savings balances, transactions, and financial data in a single dashboard, simplifying the management of your savings.
Additionally, open banking can enable features such as personalised budgeting tools, financial insights, and comparisons of savings products.
It gives individuals to have better control over their finances and explore new opportunities to optimise their savings based on a holistic understanding of their financial situation.