Open Banking has been around for several years. With PSD2 in the European Union and Open Banking in the UK, banks were forced to open access to payment accounts and payment services to regulated third parties. Since then, we have seen a growing number of use cases emerge: account aggregation in personal financial management applications, transaction data used for credit scoring and risk decisioning, account verification during onboarding, cashback and loyalty services, and account-to-account payments. Yet despite all the attention Open Banking has received, its impact remains relatively limited compared with its original promise. Part of the explanation is technical. API quality and availability still vary significantly between banks. Implementations differ, making connectivity complex and costly for third-party providers. Authentication and consent processes can introduce additional friction, while seemingly basic challenges around historical information, joint accounts, transac...
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