Introduction to the topic
The Open Banking Working Group (OBWG) was set up in September 2015 at the request of HM Treasury to explore how data could be used to help people transact, save, borrow, lend and invest their money. The OBWG has set out an Open Banking Standard to guide how open banking data should be created, shared and used by its owners and those who access it.
Why set an Open Banking Standard?
Making it possible to share data that banks have historically held will improve people’s banking experience. When securely shared or published openly using open APIs, the data can be used to build useful applications and resources to help people find what they need. Customers can look for a mortgage more easily, banks can find customers matched to a new product, and businesses can share data with their accountants. This, in turn, will improve efficiency and stimulate innovation.
The Open Banking Standard framework sets out how to develop an openly accessible set of standards, tools, techniques and processes that will help improve competition and efficiency, and stimulate innovation in the banking sector. It guides how open banking data should be created and used, and can be implemented by recommendations set out by the OBWG.
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