• Open API

    open API is an IT technical term in the context of the description of programming interfaces. The open API specification aims to provide an open, vendor-neutral description format for API-based services. The open API approach is not restricted to banking APIs, nor does it define how the interfaces/APIs are to be used for business purposes.
    Banking interfaces, which are standardised according to the open API approach, allow for example the simple connection of third parties (TPPs) and are thus a prerequisite of open Banking. However, they can also be of great benefit to the banks themselves, for example when linking different server systems or exchanging data between banks.

  • Open Banking/API Banking
    The term open banking is used to describe the provision of open interfaces by banks for third-party providers. Open banking is based on the fact that banking services are implemented using the IT-technical open API approach. Typically, the focus is on enabling third parties (TPPs) to access banking functionalities that were previously reserved for the respective bank itself. The open Banking approach is based on the assumption that this will create a basis for new, innovative business models in the financial environment.
    The design of open Banking can be done in two ways: With regulatory frameworks such as the PSD2 regime in the EU area and the analogous requirements in the UK, financial institutions are forced to open their APIs. By contrast, in Switzerland a path is emerging in which the open banking approach is implemented in such a way that the banks remain in the lead when their APIs are released.
    open banking is a term from the business world, in contrast to the IT technical term open API.

  • PSD2
    The abbreviation PSD2 stands for Payment Service Directive 2. This refers to a regulatory directive from the EU area that requires banks to provide third parties with non-discriminatory access to certain banking services (context: account access (XS2A, Access to Account) and payment transactions). No technical implementation instructions are associated with this regulatory requirement. Therefore, each bank concerned is free to model the interfaces/APIs to be disclosed, as long as the result provides the required banking functionalities and the performance specifications are met.

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