What is Open Banking? — UK Software Development Guide
Direct Answer
Open Banking is the UK's implementation of PSD2 (Payment Services Directive 2) — a regulatory framework that requires the nine major UK banks to provide third-party providers (TPPs) with access to customer account data (with consent) via standardised APIs. Account Information Service Providers (AISPs) can read account data; Payment Initiation Service Providers (PISPs) can initiate payments.
Open Banking in the UK
UK Open Banking is regulated by the FCA and operated by the Open Banking Implementation Entity (OBIE). It has driven significant UK FinTech innovation — from budgeting apps and credit scoring tools to account-to-account payment alternatives to card networks. FCA authorisation as an AISP or PISP is required to access OBIE APIs directly. Most FinTech startups use aggregators (TrueLayer, Plaid, Yapily) to access Open Banking without direct FCA authorisation.
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Get Expert Advice on Open Banking
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