Open Banking Providers
Since the emergence of open banking and open banking providers, it has become a source of innovation and has remodelled the whole banking industry. Open banking is a banking method used to grant Third Party Service Providers (TPSPs) open access to consumer banking information. Legacy banks and non-bank financial institutions provide open access to TPSPs by utilising the Application Programming Interface (API).
Open banking reduces major banks' monopoly and increases competitiveness by allowing smaller or new banks to enter the finance and payment market efficiently. It forces legacy banks to adopt innovation faster and adhere to consumer needs. In other words, open banking providers enable consumers, financial institutions and TPSPs to adopt a network of accounts and data across institutions.
Due to changes in the payment industry, businesses adapt and offer new services. Together with their offerings evolve business models which implement more technological solutions to make transactions and finances user friendly. Open banking was the one that ignited changes in the financial industry and as of 2020, there were more than 389 open banking companies in the world.
Open banking API providers
Open banking has revolutionised the European Union's (EU) and European Economic Areas (EEAs) banking industry. The open banking API providers emerged one after another with their specific offerings and improvements. Here are a few key players in the EU and EEA:
- Minna Technologies. Minna Technologies as one of the open banking API providers emerged in Sweden. Their main goal is to empower consumers to control their subscription services via preferred bank applications. This platform offers a feature that informs consumers when their free trials are about to terminate, therefore, they can withdraw before the payment is made. Even more, this platform facilitates a search for better offers and lowers the amount spent on monthly/ yearly subscriptions.
- Tink. Tink is a service provider offering opportunities for enhanced customer experience. It gives banks, TPSPs and open banking developers in the EU a platform that consolidates Accounting Information System (AIS), Portfolio Investment Scheme (PIS) and Personal Finance Management (PFM). AIS refers to the acquisition, storage and processing of financial data. It is only utilised among internal users to broadcast information to parties related to money lending or tax payment. PFM includes applications that provide a possibility to manage one's money. PFM apps can be launched not only by banks but by any business seeking to ensure higher customer satisfaction and loyalty while obtaining useful insights on consumer behaviour.
- TrueLayer. TrueLayer is one of the open banking API providers that supply payments API and data API. The purpose of these two products is to securely connect the consumer to an application that portrays their financial information and can initiate transactions.
Open banking API providers UK
Open banking API providers in the UK are not different from the rest of the EU open banking vendors. They offer the highest level of innovation and the increasing quality of their products enhance consumers and financial services providers' experience. Here are several open banking API providers UK:
- Yapily. A fairly new company founded in 2017, but with outstanding achievements and services. Yapily provides an open API that permits businesses to gain access to any financial information that a client demands. The ever-growing customer expectations require a variety of services, therefore, businesses through Yapily can access banking, lending, payments and even money management or accounting data.
- Railsbank. Railsbank is based in London and is not only an open banking provider but also a compliance platform. Its core purpose is to transform access to global banking while implementing a single international API for digitally indigenous businesses. It also acts as an intermediary on connecting payment methods and instant bank account origination. Any transactions made via Railsbank are policy compliant and guarded by their invention Compliance Firewall.
Open banking third party providers
Open banking third party providers are the ones who encourage the change in the traditional banking environment. There are two types of open banking third party providers:
- Account Information Service Providers (AISPs). AISPs aim to enable consumers to gain visibility of all their banking accounts and payment information in one application.
- Payment Initiation Service Providers (PISPs). PISPs create an opportunity for a consumer to make a direct fund transaction via online means.
Open-minded legacy banks have learned to adapt and embrace new technological solutions to enhance their services. They determine models to open up their data and improve customer satisfaction. Legacy banks can develop research strategies and proactively implement changes by working with open banking third party providers.