Right now, open banking and rapid payments are two of the most intriguing digital banking advances. Both of these services assist individuals and businesses in improving their financial situations. While the advantages of quick payments are obvious to end users, open banking is a little more esoteric.
Open banking enables technology providers to engage directly with user banks, therefore improving their experiences. It does it by utilizing open application programming interfaces (APIs), which enable third-party developers to create apps and services based on financial institutions (FIs).
Using financial APIs through open banking might pave the path for the next stage of rapid payment development. It allows real-time payment providers to connect to any client bank and provide real-time transactions directly from accounts. Banks intend to boost API openness to more than 50% in the next three years, despite the fact that just one-quarter of financial APIs are publicly available.
The “Real-Time Payments Tracker” looks at how open banking could speed up the adoption of real-time payments. It also looks into how open banking rules in the United States and Europe impact real-time payments.