Open Banking is Not Yet in the United States. But Banks Better Start Planning for it Now
Open banking is currently mandated in the EU, via a European directive. The regulation behind open banking is the second Payment Services Directive (PSD2). Open banking is designed to permit consumers? data to be used by third party providers and thereby increase the competition and quality of products in the banking, payments, and credit cards space. Other benefits include ways to save consumers money with better interest rates or cash incentives, as well as making it easier to switch accounts, or to permit consumers? data to be used by third party providers for helpful tools such as creating a dashboard of all their financial accounts.