Will an open banking API kill commercial APIs? » Banking Technology

Banks store terabytes of valuable client data, yet this information is not available to third parties. Although there is no official way to obtain the data from banks through an authorised application programming interface (API) — an interface allowing access and information exchange between interested parties — there are commercial solutions, which do the job without any approval from financial institutions. In the European Union the situation is going to change dramatically very soon. The PSD2 directive, which will be fully effective in 2018, was created with open and secure access to banking data in mind. The objective of the PSD2 is to let third parties use the information stored in financial institutions and the only path to achieve this leads through an open API. This open API will be available to all interested companies and banks will have to share their clients’ data. The API is now being discussed and developed, but it’s not clear when it will be finalised, released and deployed.

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