Open Banking
Sharing banking data with third parties via APIs under regulated frameworks.
Detailed Description
Open Banking
What is the primary goal of Open Banking?
The primary goal of Open Banking is to enhance financial services by allowing secure sharing of financial information with third-party developers.
How does Open Banking promote competition?
Open Banking promotes competition by allowing third-party providers to access financial data, leading to better services and lower costs for consumers.
What are some key principles of Open Banking?
Key principles of Open Banking include consumer control, interoperability, transparency, and security.
What regulatory framework governs Open Banking in Europe?
In Europe, the Revised Payment Services Directive (PSD2) serves as the foundational regulation for Open Banking.
What are some challenges faced by Open Banking?
Challenges include regulatory compliance, consumer awareness, integration issues, and cybersecurity threats.