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How Does Open Banking Work?
There are some variations in open banking across the globe.
In some parts of the world, its regulated; in others, its industry-driven.
The best example of open banking is the UPI (Unified Payments Interface) service in India.
It allows users to manage multiple bank accounts on a single mobile system and also make real-time instant transactions.
Whats an Open Banking API?
Its a gateway for the seamless transfer of data without compromising security.
Benefits of Open Banking API
Theres not just one single beneficiary of open banking APIs.
It benefits customers, banks, financial institutions, and businesses collectively.
Its created with keeping the fintech developers in mind and provides access to various tools for better developer productivity.
It does this in a CDR (Consumer Data Rights) compliant way.
Basiq is only available acrossAustralia and New Zealandand supports 146 financial institutions.
Finicity
Finicityis an open banking platform by Mastercard.
Its open banking APIs put the customer in charge of their data for better security.
It supports more than 10,000 financial institutions across the US.
Thefinicity APIsupports the management of:
On top of that, it can manage student loans as well.
Integrating AI and deep learning to deliver sophisticated insights is the key feature of finicitys open banking platform.
It acts like a middleware between businesses and banks.
Venmo, Chime, Dave, and other end-user applications use Plaid to provide financial services to their users.
It currently connects with over 11,000 financial institutions across the US, Canada, and Europe.
It allows them to create more innovative and better financial services to attract consumers.
Tink was founded in 2012 and later got acquired by Visa in 2022.
Tink provides only one API, which is enough to manage bank accounts on end-user applications.
It is PSD2 compliant too.
It supports over 3400 banks and financial institutions and has around 10,000 developers using the API.
Tink offers ademoof its front-end SDK which you’re free to use to try various services.
Truelayer
Truelayeris a developer API platform that provides open banking services to fintech.
It aggregates the APIs of various banks and combines them into a single API for businesses to use.
Security and regional compliance are the key things you oughta keep in mind when choosing an open banking API.
It also depends on the use case of your tool.
Next, check out the bestAPIs for traders to integrate into financial products.
