To help you find your way through a new financial landscape, we’ve created our Open Finance Glossary: An A-to-Z of Open Finance terms and definitions.
Account Information Services (AIS) is a set of services that allow you to share your account information with a trusted third party. This can consist out of Account Information, Account Balance Information or Account Transactions.
A set of code that allows two software applications to communicate with each other.
Bank side authentication is a process where a bank verifies the identity of a customer before allowing them to access their account. By leveraging bank side authentication Third-Party providers can provide a safe and secure way for clients to share their data.
The Berlin Group is a European banking association that promotes the adoption of common standards for open banking. The group comprises representatives from banks, payment service providers, and other financial institutions. The group's goal is to make it easier for consumers and businesses to access their financial data and use it to make payments.
Open Banking provides account owners more control over their accounts and who to share account data with. In order to use Open Banking, you need to give your consent. This means that you agree to share your financial data with third - party providers.
Consent is important because it ensures that you are in control of your data. You can withdraw your consent at any time, and you know exactly who will have access to your data.
The European Banking Authority (EBA) is a European Union agency that promotes cooperation between national banking supervisors within the EU. Its goals are to maintain financial stability and to ensure the safety and soundness of the banking system. The EBA also works to promote harmonisation of banking regulations and supervisory practices.
The General Data Protection Regulation (GDPR) is a set of regulations that member states of the European Union must implement in order to protect the privacy of digital data. The regulation is also known as the EU Data Protection Regulation, Reg. No. 765/2016. It replaces the Data Protection Directive (95/46/EC), which was passed in 1995 and did not take into account advances in technology. The regulation sets out strict rules about how personal data must be collected, used, and protected. It gives individuals the right to know what personal data is being collected about them, the right to have that data erased, and the right to object to its use. The regulation applies to any company that processes or intends to process the data of individuals in the EU, regardless of whether the company is based inside or outside the EU.This means that startups will need to comply with the GDPR if they process the data of EU citizens, even if they are not based in the EU.
Know Your Customer (KYC) is the process of a business identifying and verifying the identity of its customers. The KYC process is used to prevent identity theft, money laundering, and other financial crimes.
Multibanking is a method of banking that allows customers to have accounts with multiple banks. This can be done by using a single login to access all of the customer's accounts, or by using multiple login credentials to access each account separately. Multibanking can be beneficial for customers because it allows them to easily compare rates and fees between banks, and it also gives them more flexibility in terms of how they manage their money.
Open API is a set of specifications that allow software developers to programmatically access application functionality. It enables developers to interact with an application using their own software, rather than being limited to the application's native interface.
Open Banking is a term used for the increased access to financial data that consumers and businesses have been given since the second Payment Services Directive (PSD2) came into effect in January 2018. Open Banking allows third-party providers (TPPs) to access customer account data with their permission, in order to provide enhanced financial products and services. This increased access to data gives consumers and businesses more choice and control over how they manage their finances.
Open Finance is about making financial services more accessible and inclusive. It is about giving people more control over their finances and providing them with the tools they need to make better financial decisions.
Payment Initiation Services (PIS) is a service that allows you to initiate a payment from your account directly to another account (A2A).
A Payment Services User (PSU) is a person or organization that uses payment services to make or receive payments or uses a financial service. Payment services are services that allow you to send and receive money, typically using a bank account or credit card.
Strong Customer Authentication (SCA) is an authentication process that requires users to provide two or more independent authentication factors to verify their identity. This process is designed to make it more difficult for criminals to use stolen credentials to access online accounts.
A Third-Party Provider (TPP) is a company that provides services to customers on behalf of a financial institution. In open banking, TPPs are able to access customer data and make payments on their behalf. This allows customers to use third-party services to manage their finances in a way that is convenient for them.
eIDAS certificates are electronic identification (eID) documents that allow natural persons and legal entities to identify themselves online in a secure way.