What is Open Banking?

With the new regulations brought by the concept of open banking, significant changes in banking data and a fundamental transformation of the financial sector are expected. Originating in the United Kingdom and spreading across Europe, open banking supports data ownership remaining with the customer. It allows third-party service providers to collect data from multiple institutions, enabling users to analyze their income and spending, thus making budget control easier. Your data is shared securely through third-party service providers to offer you better financial services. In this way, you can access financial solutions tailored to your needs and carry out banking operations in a practical way.

Advantages of Open Banking

Open banking services provide a wide range of products and offerings. With open banking systems, you can carry out all your payments without needing an e-money institution, bank, or payment service provider. Unlike traditional banking, dependency on a single bank is minimized in this system. This allows for the smooth management of cash flow and tax payments without internet banking. Accessing all your bank accounts through a single interface makes data control easier, while also allowing you to apply for loans, view asset reports, perform risk analysis, and access personalized financial products—all from a single platform. As an outstanding example of innovation, open banking makes account transaction management easier. The system leverages internal and open API technologies, offering a broad library of software and allowing access to API applications and banking services across different platforms. These services, also known as API banking, allow you to access all banking functions wherever there is an internet connection.

Service Diversity Enabled by Ease of Use

Personalized customer experiences lead to solutions tailored for every need. Open banking services, which effectively support efficiency in financial management, provide practical payment systems across multiple channels. Cash flow reports presented with clear and simple graphics help you gain insights into account management and budgeting. The integrated accounting system not only makes financial control easier but also enables the use of AI-powered financial recommendations. Additionally, you can eliminate EFT, SWIFT, and wire transfer fees. Payroll processes can be monitored through a single channel, allowing quick access to salary-related calculations and reporting.

Innovative Banking Systems

Also known as the Revised Payment Services Directive (PSD2), this framework supports innovative developments. Sharing data with Third Party Service Providers (TPPs) is a significant step for the advancement of the financial and commercial sectors. PSD2 supports innovative online payment and banking systems while setting boundaries and safeguarding the rights of third-party providers. It also protects consumer rights and security, promoting the development of new applications. This makes it easier and more cost-effective to develop apps. Existing electronic banking applications can be adapted to the open banking system, offering more secure and practical payment services to users.

Innovative Banking Approach and New Regulations

Still emerging in Türkiye, these services are being adopted primarily by corporate users. In the near future, services and solutions will be offered to individual users as well by financial technology companies and banks. The Banking Regulation and Supervision Agency (BDDK) has been authorized to determine the rules and procedures regarding services related to open banking. While BDDK regulates banking operations, the Central Bank will set the framework for payment service providers. These regulations, added to Law No. 6493, aim to support open banking services that can be easily used by everyone. With regulatory support, open banking will become part of digital life and evolve in compliance with legislation to meet user needs. As this system—offering a fresh perspective on banking—becomes more widespread, the diversity of services is also expected to increase.

What is Open Banking?