FinTechTerms
FinTechTerms
Topic: Open banking and payment railsBIST

Open Banking

System providing third-party access to financial data through APIs.

Why it matters

Open banking matters because it moves bank connectivity from screen scraping and bilateral integrations toward standardized consent, stronger security controls, auditable data access, and new account-to-account payment flows.

How it works

In practice, the user grants consent, the third party authenticates and requests access through the standard interface, the account provider validates the request, and data or payment instructions move within the agreed permission scope.

Risks and pitfalls

The main error is to ignore consent scope or role boundaries. Account information, payment initiation, confirmation of funds, and recurring permission models carry different risks and should not be described as one generic API access pattern.

Regional notes

For BIST and MOEX comparisons, open banking should be mapped to local payment-services regulation, bank API maturity, customer-authentication norms, and whether account-to-account payments have a reliable commercial rail.

Related terms

Compare with

Banking-as-a-Service

Build from

API

PSD2

Payment Services Directive 2.

SCA

Strong Customer Authentication.

API Banking

Banking services provided via APIs.

Variable Recurring Payments

An open banking payment permission that allows repeated payments with varying amounts within agreed limits.

Primary sources

Open Banking UK

2026-03-15

Open Banking UK: API standards

Primary source for open banking permissions and recurring payment rails.

European Banking Authority

2026-03-15

European Banking Authority: Strong Customer Authentication

Primary source for SCA and PSD2 compliance context.

SWIFT

2026-03-15

SWIFT: ISO 20022 migration

Primary source for ISO 20022 and messaging standards.

Author

Kağan Samet Durmuş

Founder and multilingual fintech glossary editor

Reviewer

FinTechTerms Editorial Review

Editorial and source review layer

Reviewed

5/4/2026

Common questions

What does Open Banking mean?

System providing third-party access to financial data through APIs.

Why does Open Banking matter in fintech?

Open banking matters because it moves bank connectivity from screen scraping and bilateral integrations toward standardized consent, stronger security controls, auditable data access, and new account-to-account payment flows.

What risks should teams watch with Open Banking?

The main error is to ignore consent scope or role boundaries. Account information, payment initiation, confirmation of funds, and recurring permission models carry different risks and should not be described as one generic API access pattern.