liveBook · Manning

Open banking

As explained in Secure APIs

Open banking is a financial-services model in which institutions expose customer-authorized financial data and capabilities through APIs to third-party providers.

Open banking securely exposes banking data and capabilities through APIs, allowing third-party applications to access customer accounts with user consent. section 10.1

It lets fintech applications provide account aggregation, budgeting, expense tracking, payments, and related services without requiring each provider to build banking infrastructure. section 10.0 section 10.1

From screen scraping to APIs

Before open banking APIs, users shared bank credentials with third-party applications. Those applications logged in as the customer and scraped account data, creating broad access and credential-storage risks. Open banking replaces this pattern with consent-based API access. section 10.1

Figure 10.1 In screen scraping, bank customers share their account credentials with a third-party application that uses those credentials to log in to the bank’s website by impersonating the customer.
figure

Visualizes how screen scraping requires customers to share credentials with an application that impersonates them at the bank. section 10.1

How Secure APIs covers it

How deep it goes
Defines API-based access and contrasts it with credential-based screen scraping and its security consequences.
Examples
Uses account aggregators, budgeting applications, payment processors, and the screen-scraping login flow.
What you can do after
Evaluate/understand how consent-based APIs improve on third-party credential sharing for financial applications.
How it connects
Connects APIs, fintech, account aggregation, screen scraping, customer consent, and PSD2.

Related concepts

This explainer was generated by Manning's knowledge graph from the text of Secure APIs. The section links point to the parts of the book it draws on.