Open Banking refers to a specific U.K. organization authorized by the Competition and Markets Authority on behalf of the U.K. government. The broader use of the term open banking refers to the set of laws, technical specifications and implementations around the world to improve the secure sharing of customer financial information, with full approval by the customer.
Now, open banking initiatives are in place, or coming soon, to multiple jurisdictions around the world. While each country is approaching open banking differently, the goals are the same: to create more innovation in financial services, provide more options for consumers and speed up adoption of digital banking.
Over 1 million people in the U.K. now use open banking technology, the number of financial service providers participating has doubled to over 200 and there are over 200 million API calls each month.
Open banking — lessons, challenges and paths forward for new banking services from Trulioo