Open Banking
Open Banking is a financial services model in which banks expose application programming interfaces (APIs) that allow authorized third-party fintech companies or service providers to securely access and use bank account data and related functions, subject to user consent. Its core characteristics include promoting financial ecosystem collaboration through data sharing, driving financial product innovation, and enhancing market competition. The model aims to break down banking data silos and typically requires an accompanying regulatory framework and data security standards.
Timeline (last 90 days)
The maturation of the open banking movement and data aggregation technology (such as the bank account connection API provided by Plaid) has enabled third-party applications to securely access users' spending data.