Open banking is a system under which banks open up their application programming interfaces (APIs), allowing third parties to access financial information needed to develop new apps and services and providing account holders greater financial transparency options.

How is API used in banking?

BaaS: Banks can use API banking to build digital banking experiences for customers, including online banking and mobile banking. … Banks can also use APIs to link their services to fintech apps, enabling new customers to open debit, credit, or savings accounts from within those apps.

How is API used in payments?

Application Programming Interfaces (APIs) enable the seamless integration of software, making it easier than ever for applications to share data in real-time. When it comes to payments, APIs have transformed the experience, allowing for faster, more secure and lower cost transaction processing.