As an industry, we’ve invented an impressive repertoire of words to talk about what banks are doing with APIs. We decided it’s time to clarify what we really mean when we say Banking-as-a-Service and how this relates to open banking.
Senior bank executives are starting to understand that Open Banking will have key implications on their future competitive positioning and related digital transformation activities. We define Open Banking as a business approach in which value creation results from sharing, providing and leveraging access to bank resources through application programming interfaces (APIs). This way data, processes and other business capabilities of banks are made available to an ecosystem of (selected) third parties (e.g. fintechs, technology vendors, corporate customers).