What is Open Banking?
Since September 2019, banks are now required to share information with other actors, in accordance with the so-called PSD2 directive from the EU. It is important to point out that this can only happen if the customer allows the sharing of information or information in question to be linked to the customer’s accounts, transactions, and assets to other players. Simply put, this means that the banks’ customer data and infrastructure can be used by more companies to increase customer value.
The idea behind these changes is that they should encourage increased competition and innovation in financial services, which in turn hopes to lead to more and better products for how companies and individuals handle money.