“Open banking enables authorised services to connect to payment accounts with the customer’s permission. For businesses, the value is practical: easier account views and new payment journeys.”
A consent-based connection to payment accounts
Open banking describes regulated access to payment-account services through secure interfaces. A customer can authorise an appropriately regulated provider to initiate a payment or retrieve permitted account information. The account-servicing institution authenticates the customer, and the third-party provider receives only the access needed for the agreed service.
This does not give every app unrestricted access to a bank account. The service, permission and duration should be clear to the customer. The European framework distinguishes payment initiation services from account information services, each with different functions and obligations.
Where businesses may see value
Account information can help a finance team view balances and transactions from more than one institution in a single authorised interface. Payment initiation can let a customer approve an account-to-account payment from within a merchant or platform journey. These capabilities can support cash visibility, reconciliation and convenient checkout options when implemented responsibly.
Open banking is one part of a wider payment toolkit. Businesses may still need SEPA transfers for euro settlement and SWIFT transfers for international corridors. The right choice depends on the use case rather than the technology label.
Questions to ask before connecting
Confirm who provides the service, the regulatory capacity in which it operates, what data it requests and how consent can be withdrawn. Business users should understand which people in their organisation may connect accounts and how that permission fits existing treasury controls.
What exact service is being authorised?
Which accounts and data categories are included?
How long does consent last and how can it be revoked?
How will payments or imported transactions be reconciled?
What support channel applies if the connection fails?
The platform layer behind open banking
Reliable client experiences require secure API connectivity, clear consent states and strong operational monitoring. Modular Fintech’s API integration services show how this connectivity can be incorporated into a broader fintech platform.
