Open Banking is a system that allows banks to securely share customer financial data with third-party providers (with customer consent) through APIs to offer better financial services.
Open Banking enables customers to connect their bank accounts with fintech apps for services like budgeting, lending, payments, and investment tracking.
It promotes innovation, competition, and better customer experience in financial services. In India, similar frameworks are supported by initiatives under the Reserve Bank of India and systems like Account Aggregators.
"A user links their bank account to a budgeting app that analyzes spending and suggests savings plans using open banking APIs."