The data is sensitive, so the market needed regulation. Open banking directives and, even more broadly, open banking standards were established to build, civilise and protect customers. By definition, open banking is a financial service made possible by banks making information about their customers’ accounts available to third parties (TPPs).
This data is transmitted through specialised software – (APIs). Financial institutions can see the account holder’s name, account type, opening date, currency type and transaction details (amounts, merchants, spending patterns). Based on this information, companies, through apps and services, can provide consumers with various tips. Any open banking regulation on open banking is being implemented in an increasing number of countries on all continents.
Open Banking Implementation Entity
In order to effectively protect your data, the following legislation has been introduced that you need to be aware of if you are planning to develop an open banking digital product. An important piece of legislation in this case will be the Open Banking Implementation Entity. (OBIE) is the body that creates open API standards that enable companies across Europe to fulfil their respective obligations under the Second Payment Services Directive (Directive 2015/2366/EU). This body’s tasks include supporting the Trustee in issuing warrants in situations where performance or implementation is considered to be below expectations, and then continuously monitoring compliance with these warrants.
NextGenPSD2XS2A i Open API Framework
It is a common open banking API standard created by The Berlin Group. It comprises almost 40 banks, associations and payment service providers from across the European Union (EU). The Berlin Group NextGenPSD2 has been implemented in all EU countries (mainly at national level), in several non-EU countries in Europe and in non-European countries with a focus on maintaining reachability and compatibility with the European market. Further regulation is presented by the Open API Framework. This is a framework with a step-by-step launch approach that requires banks and third parties to work together to create systems that provide a seamless user experience.
API Exchange (APIX)
In this case, it is a legal framework issued by the Monetary Authority of Singapore (MAS). It was created to encourage banks to open up their systems and data for use by third-party companies and fintechs. Created by an amendment to the Treasury Regulations (Consumer Data Right), it increases the data control ratio for local consumers. They now have the right to choose what data they want to share with API providers.
