The provision of banking services through application programming interfaces (APIs) developed by a third-party providers, mainly through portals and applications. This involves allowing regulated providers to access, use and share banking data to the best interest of banking customers. Open banking provides secure interoperability in the banking and financial industry by allowing third-party providers to capitalize on data related to banking transactions through APIs.

Opening up access to data historically kept by banks and banking institutions in-house facilitates the introduction of new companies and new products to the market, whiling using this data in helpful, innovative ways. For example, with open banking, customers can carry out faster and more secure transactions virtually irrespective of location or geographic region.