Advantages of Open Banking API

banking API

It is becoming more and more common for companies to preform identity checks on their costumers online. This can make processes easier for both customer and company, not to mention it makes it simpler and faster to access a service without compromising safety. With open banking API companies are allowed to access information about their customers directly through the customer’s banks. This means that identification information that has already been stored in the bank can be used to verify the identity of the consumer through the API. The process is becoming more common as it enables a smoother user experience.

How open banking API works

Open banking API is commonly used by app developers that are looking to make digital banking easier for the user. It can also be used to verify identities since companies can use the customer’s bank information to verify their identity and personal information. This works both to verify sensitive information, such as personal information, as well as financial information, such as to verify the costumer’s bank account. Through open banking API, companies can easily verify:

  • The customer’s name.
  • Their date of birth.
  • Their bank account information.
  • Their address (if the bank allows it)

Open banking access is global

Open banking API is becoming increasingly common. Therefore, a lot of banks globally have already connected to the system. As it is becoming a standard feature for banks more and more actors in the financial sector are implementing open these banking features. This makes it a global system under continuous development, with new features available to users constantly.

Automated service with real-time AML

To ensure security for both customer and company, the open banking API identity verification also uses real-time AML. This is a step forward in the battle against money laundering and fraud. The customer verifies their ID while PEP and sanction checks are done simultaneously. This does not require any additional action from the customer but allows the company to ensure that there are no additional risks. Therefore, the security check does not in any way jeopardize the seamless experience for the user while the company gets access to a thorough risk screening.