How does open banking work?

Open banking is made possible via API's to securely share data between financial institutions and external parties. An API is best described as a digital bridge between two systems, enabling communication between both systems. Banks have made API's available. External developers can use these API's to access information such as transaction data, account balance and customer information.

Can anyone now access my data?

No, definitely not. There are strict security measures in place. For an external party such as EnableNow to be allowed to communicate with the bank, they need a so called PSD2 license. In order to receive a PSD2 license, you must utilise a wide range of security measures and (compliance) protocols. Actual access to a bankaccount is only granted if the account holder gives explicit permission. That access is not infinite, the account holder always keeps control over who has access and for how long.

What can you do with open banking?

Before open banking was introduced, the data and thus the possibilities to build innovative applications for this data were only with the banks themselves. Thanks to open banking, third parties can now also access this data and develop smart applications for it. Think of:

• Advanced budgetting tools
• Custom loans
• Custom payment arrangements
• Advice on how to save money based on your specific situation
• Credit acceptance screening based on transaction data
• Screening for rental housing based on transaction data
• Calculate a private lease budget
• And much more

Another great application is that open banking makes it possible to manage multiple bank accounts from different banks on one platform. More simplicity, speed and convenience.

Conclusion

Data only really becomes powerful when it is made available and can be used. Open banking is going to revolutionize the way we use our financial data. It will give us more insight into various aspects of our lives, such as our financial management, and it will help to bring suppliers and buyers even closer together.

What does EnableNow do?

We want to be at the forefront of the Open Banking revolution. Thanks to a great collaboration with EY, EnableNow has obtained a PSD2 license from de Nederlandse Bank. We offer the technology that makes open banking possible and help our customers to gather smart insights based on transaction data. Together with them, we come up with simple solutions for complex issues such as credit, pensions and mortgages. We offer more than a SaaS solution that can collect data. We can label, structure and categorize the data so that the realization of relevant dashboards & insights is a piece of cake.

Want to know more? Then contact us!