Okuzeka
Finance & Banking vocabulary · Fintech & Digital Banking

Open banking

Meaning in finance & banking, with examples

nounCommon term

In finance & banking, open banking means: A system in which banks, with the customer's permission, share account data or let licensed third parties start payments through secure APIs.

In Turkish: açık bankacılık

How it is used

Used in fintech, digital banking and regulation. In Europe it grew out of the PSD2 rules. The key services are account information and payment initiation. Customers give and withdraw consent, and providers connect through open banking APIs.

Example sentences

  1. With open banking, the budgeting app can see the customer's accounts at three different banks.

  2. We are building new open banking APIs for business customers.

Common collocations

  • open banking API
  • open banking regulation
  • open banking provider
  • account information service
  • fintechShort for financial technology: technology that improves or automates financial services, and the companies that build such products.
  • mobile bankingUsing a bank's app on a smartphone or tablet to check balances, make payments, transfer money and use other services.
  • instant paymentAn electronic transfer that reaches the recipient's account within seconds, at any time of day, on every day of the year.
  • regulatorA public body that makes and enforces the rules for an industry. Banking regulators license banks, set capital rules and inspect banks.

More terms: Fintech & Digital Banking

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This page explains English vocabulary for learners. It is not financial advice.