Open banking is a trend in the financial industry where banks and other financial institutions open up their data sources to give customers and third-party providers access to financial information and services. This is done by providing secure APIs (Application Programming Interfaces) that third-party providers can use to build financial services and solutions.
The aim of open banking is to increase competition in the financial industry and give customers greater choice and the ability to easily compare and choose between different services and offers.
Open banking can also help to make financial services more accessible and user-friendly, especially for people who do not have access to traditional banks or who find it difficult to navigate the financial world.
However, open banking also increases the vulnerability of customers’ financial information, so it is important to consider security and integrity when implementing these services.