OPEN FINANCE AND DATA ACCESS

PSD2 paved the way by giving regulated third-party providers (TPPs) the right to access payment accounts on behalf of consumers (known as Open Banking) and enabled TPPs to compete with incumbent payment methods, driving innovation that benefits consumers. 

It also sets out that dedicated interfaces be developed to ensure secure, efficient messaging between TPPs and account providers (e.g. banks). The obvious technological choice for this messaging was APIs, which already underpin much of the rest of the digital economy. These Open Banking networks also bring many additional benefits for consumers by combining access to data with access to accounts to initiate payments.

OFAE members believe that Open Banking can be improved and developed into Open Finance through the development of existing and new secure APIs.