Open banking is a financial services model that allows third-party providers, such as fintech companies, to access bank customers’ financial data with their consent. The goal of open banking is to promote competition and innovation in the financial services industry by enabling customers to securely share their financial data with trusted providers who can offer a broader range of financial products and services.

Open banking is typically implemented through application programming interfaces (APIs), which allow third-party providers to access bank customers’ financial data in a secure and controlled environment. Banks must make their APIs available to third-party providers, who can develop new financial products and services that leverage this data. Open banking raises concerns about the security and privacy of customer data and the potential for financial fraud and abuse. Open banking is typically subject to strong regulatory oversight and requires banks and third-party providers to implement robust security and privacy measures.