The shift towards a digital economy has increased the demand for more transparency, accessibility, and speed of services. The financial sector has introduced open banking APIs to address these needs, which provide secure transactions while improving customer convenience.

What is open banking API?

Open banking API is a technology that facilitates financial data sharing between institutions, creating an open ecosystem that encourages competition and innovation. This innovative technology also allows third-party providers to develop financial applications and services based on accurate data from multiple banks.

Download: Banking & Investment Apps For Teens

Customers can use open banking API to share their banking data with third-party applications, gaining access to services such as budgeting tools, investment apps, and payment platforms. With real-time access to financial data across various banking platforms, customers enjoy a holistic view of their financial status.

This cutting-edge technology is transforming the banking industry, benefiting customers and institutions. Customers can have greater control and transparency over their financial data and access to new and innovative products and services. On the other hand, financial institutions can create customer-centric solutions that cater to evolving consumer needs, thereby allowing for new revenue streams.

Opening doors to innovative financial technology with open banking API

Open banking APIs have transformed the financial sector for many good reasons. They improve customer experience by providing access to financial data across multiple providers in one place, making it easier for customers to manage their finances and authorize third-party providers to make payments or transfers on their behalf This ultimately makes transactions faster and more convenient. Customers can also receive tailored and personalized services from third-party providers, enhancing their overall experiences.

Open banking APIs foster innovation and competition in the financial sector. Third-party access to financial institution data enables the development of new products and services, promotes healthy competition among providers, and enables the development of more efficient and innovative services.

Additionally, this innovative way of banking strengthens fraud prevention measures, lowers transaction costs, and promotes more affordable and accessible financial services while streamlining banking processes. With open banking API, financial institutions can also reap the benefits of new revenue streams through partnerships.

Finally, lenders can make better-informed decisions based on a customer's creditworthiness. Open banking APIs benefit everyone involved, creating a more efficient and inclusive financial system.

Five open banking API startups reshaping traditional banking

From cutting-edge payment platforms to open banking ecosystems, these startups are reshaping the traditional banking landscape and empowering businesses and consumers with greater control over their finances. Let's take a closer look at these five open banking API startups driving the future of banking.

Credit Kudos

Credit Kudos is an innovative credit bureau that measures creditworthiness through financial behavior. The startup develops transparent credit scorecards and accurate metrics using consumer transaction data.

As an Open Banking credit reference agency, Credit Kudos enables credit providers to make better decisions with better data. Their suite of innovative products helps commercial, and consumer lenders automate decisions, increase acceptances responsibly, and reduce risk.

Tink

Tink is a technology provider that collaborates with banks and fintech across Europe to develop innovative digital products utilizing open banking and PSD2. As a startup, Tink offers the fundamental components financial institutions need to enhance their customers' digital banking journey.

Railsr

Railsr (formerly Railsbank) is transforming the world of finance with cutting-edge embedded solutions. From day one, Railsr has pushed boundaries and driven innovation to the next level. Today, they're leading the charge in digitizing financial products and services, enabling companies to deliver tailored customer experiences.

Plaid

Plaid open banking startup that provides companies with the resources and access they need to create digital financial systems. As an open banking startup, Plaid streamlines financial technology by addressing the underlying infrastructure of banks and credit cards.

Truelayer

The Success Story of Raiffeisen Bank International & Plug and Play

TrueLayer is an open banking fintech startup that provides a toolkit for creating financial apps for consumers and small to medium-sized businesses across various fields, such as payments, online lending, insurance, investment services, and cryptocurrencies.

Open banking API startups are changing the financial industry drastically by creating new opportunities for financial institutions and customers to connect digitally. The ability to securely share financial data between banks and third-party providers has opened new doors for banks and non-bank companies to be more innovative and grow more competitive and profitable.

Plug and Play connects corporations and startups to drive innovation.Don't miss out on the chance to join the open banking and stay ahead of the curve in the financial landscape. Discover some of our innovations in financial services with ourFintech program.