Open Banking

(Open Banking is an international term).

Open banking describes the practice of making banking data and services accessible to third-party providers via open APIs. This enables innovative financial solutions and better control over personal finances.

Open Banking

Open banking refers to the initiative to make bank customers' financial data accessible to third-party providers. This is done by providing open APIs (Application Programming Interfaces) through which third-party providers, such as fintech companies or other financial service providers, can access banking data and services. The aim of open banking is to promote innovative financial solutions that offer customers added value, such as personalized financial advice, payment processing and credit comparisons.

As part of Open Banking, customers can securely share their financial data and authorize third-party providers to carry out transactions on their behalf. Banks and payment providers such as Payrexx play a central role by opening their APIs and enabling third-party providers to access account information and payment services.

Open Banking examples

A fintech start-up offers an app that combines accounts from different banks and gives users a comprehensive overview of their finances.

An online retailer integrates a payment platform such as Payrexx to enable direct bank payments via Open Banking.

A loan comparison service uses Open Banking to quickly and accurately present loan offers based on the customer's financial data.

Open Banking FAQ

  • Open APIs (Application Programming Interfaces) in the context of Open Banking are interfaces provided by banks and financial institutions to enable third-party providers to access certain banking data and services. These APIs allow third-party providers to access account information, carry out transactions and develop innovative financial solutions in a secure and controlled manner.

  • Open Banking offers bank customers a number of advantages. They can centrally manage financial data from different accounts and institutions without having to search through multiple platforms. Customers receive personalized financial advice, improved credit offers and seamless payment processing. Open banking also promotes competition among financial service providers, which can lead to better services and lower costs.

  • The security of financial data in the context of Open Banking is guaranteed by strict security measures. Banks and third-party providers implement encryption, authentication and access controls to protect the confidentiality and integrity of data. In addition, third-party providers must meet strict security standards and certifications before they are granted access to the APIs.

  • Open banking can improve a wide range of financial services, including lending, payment processing, investments, insurance and more. Customers can benefit from customized offers, faster transactions and more seamless financial management. New fintech companies can develop innovative products and services that enrich the customer experience.

  • Open banking is changing the traditional banking landscape by intensifying competition and giving customers more choice and control over their finances. Banks need to provide open APIs and develop innovative solutions to stay relevant. New players such as fintechs have the opportunity to enter the market with innovative offerings and expand the variety of services. This can lead to a more comprehensive and customer-centric financial market.