Overview#Open Banking is a concept to allow the sharing of Financial Data. Payment Services Directive (PSD2) being spearheaded by the European Banking Authority (EBA).
Designed to create more competition and stimulate innovation in the banking sector, PSD2 requires Account Servicing Payment Service Providers (ASPSPs), including banks, building societies and credit unions, to expose open Application Programing Interfaces (APIs) to allow other banks and third parties to access their customer account information, when the customer has given their consent. The PSD2 requires that all member states implement this rule as national law by January 13, 2018.Open Bank Project enables banks to offer an ecosystem of Third-party Applications and services to their customers. United Kingdom Competition and Markets Authority (CMA) is going beyond PSD2 for and has mandated Authentication is based on OpenID Connect, which is based on OAuth 2.0 along with the OpenID Foundation's Financial API (FAPI) be utilized by the Open Banking Implementation Entity (OBIE) Open Banking Security Profile Read+Write specification document which in turn is based on the Read only specification document.
More Information#There might be more information for this subject on one of the following:
- Open Bank Project
- Open Banking Implementation Entity
- Open Banking OBIE
- Payment Initiation Service Provider
- Web Blog_blogentry_210517_1