In traditional banking systems, only banks have access to customers’ account information.

According to open banking principles, banks both store customer information, and ensure that financial data can be viewed and transacted in a secure way on third party digital platforms only with the permission of bank customers.

The Open banking module, one of the components of the Instant Payments System, in its turn, is intended for third parties to gain access to bank account information by obtaining permission from bank customers.

The Open banking principles are based upon the European PSD2 (Payment Services Directive) directive.

Financial institutions can expand their ecosystems to provide a better service for customers maintaining a rapid and effective connection with banking partners and third parties with the help of the Open banking concept. Moreover, they can further develop customer services following and analyzing customer behavior.

While third parties can provide unique opportunities for customers, like rapid and uninterrupted financial services, management of all accounts from one application.

Open banking services include:

1. Retrieving and managing account related information
2. Requesting an account balance
3. Getting an account statement
4. Getting consent for the use of the account
5. Sharing transaction related status etc.