Open banking is the next space in payments for innovators. Read this guide to understand how this new frontier in payments could impact your company and discover how you can harness open banking to grow your business, propositions and customer base.
What is open banking?
Open banking is essentially data sharing between financial institutions and people. It means customers who agree to open banking can, among other things, get a view of their funds across different financial services, in one place. This makes it easier for some users to compare financial products, and it can help them access more choice. Plus, there’s the possibility of it helping to make sending and receiving funds more straightforward.
Open banking regulation
Open banking is a concept backed by different regulations enabling users to grant permission to third parties to access their financial information.
Why is open banking important?
This is a big one for the financial services industry because it has the potential to transform the way people and businesses make payments and financial decisions.And it’s a high value sector - the global open banking market is expected to reach $37.77 billion in 2025 at a CAGR of 25.7%. Europe is estimated to witness the highest CAGR of 24.0% from 2019 to 2026.
Keep up with the competition
Open banking is an area other financial institutions are already getting involved with and one of significant growth. Eight out of 10 financial firms are adopting or planning to adopt open banking, or are interested in doing so.
Who we work with
Weavr has an open banking proposition which allows businesses to embed banking and payments into their mobile app or SaaS platforms.They’re expanding too, as well as closing a £7 million seed funding round in 2021, they explain they’ll be launching in the US soon.
Launched in 2019, GPS customer Currensea was responsible for the UK’s first direct debit travel card, and it uses open banking. They explain: “Currensea is a layer in front of your current bank account, giving you extra security and making your bank work that bit harder.” You can read more about Currensea In our case study.
How can I offer open banking propositions?
Open banking means fintechs and banks can create application programming interfaces (APIs) that can provide financial services without having a physical presence - like a branch on the high street.
By utilising Global Processing Services’ (GPS) proprietary technology you could offer propositions that rely on open banking and receive the same next generation payment issuing solutions as some of the world’s leading challengers.
Looking for a payments processor that could help your business offer innovative open banking propositions? We can help you every step of the way from idea to implementation. Get in touch