What is Open Banking?
In 2015, the EU adopted a new Payment Services Directive (PSD2), promoting the development and use of new financial technologies. To increase competition and give people more choice, the UK’s Competition and Markets Authority (CMA) subsequently adopted Open Banking.
The Open Banking standard means big banks need to create secure channels for access to bank account data. Put simply, it means businesses and individuals will be able to share their banking data more easily, allowing them to take advantage of cheaper access to capital and financial technology.