---
term: "Open banking"
category: "Open banking and open finance"
url: https://agenticopenfinance.com/glossary/open-banking
source: AgenticOpenFinance glossary
---

# Open banking

> Customers letting authorised third parties access their payment account data and initiate payments through secure APIs.

Open banking is the arrangement in which customers can let authorised third parties access their payment account data or initiate payments from their accounts through secure, standardised interfaces provided by their bank. In the European Union and the UK it rests on PSD2 and the UK Payment Services Regulations, with UK API standards first developed under a competition remedy and the FCA now setting out the framework's future. For agents, open banking provides regulated, revocable channels to read accounts and pay, in place of credential sharing.

Related terms: [Open finance](https://agenticopenfinance.com/glossary/open-finance.md), [Account information service](https://agenticopenfinance.com/glossary/account-information-service.md), [Payment initiation service](https://agenticopenfinance.com/glossary/payment-initiation-service.md), [Third-party provider (TPP)](https://agenticopenfinance.com/glossary/third-party-provider.md), [UK Open Banking Standard](https://agenticopenfinance.com/glossary/open-banking-standard.md)