Open banking allows consumers to share their banking data with third-party financial providers via application programming interfaces (APIs). Common use cases for open banking include customer onboarding [1], account top-ups, invoice settlement, ecommerce, income & affordability analysis, risk decisioning, personal finance management, accounting, banking, business finance management, SME lending, treasury management, and apps such as Revolut and N26. Open banking can also be used for subscription management, cash pooling, and foreign exchange across multiple banks. Additionally, open banking’s access to account (XS2A) provides opportunities for companies to offer services and products based on customers’ financial data, such as budgeting tools, financial advice, and personalized recommendations.
1. Open banking use cases: a brief glimpse into the future | GoCardless