What is Open Finance?

Open finance is a system that allows consumers to securely share their financial data with authorized third parties through APIs, enabling innovative financial products and services.

Open banking focuses on bank accounts and payments. Open finance includes a broader range of financial products such as investments, insurance and pensions.

It is used for personal financial management, credit decisioning, embedded finance, insurance underwriting and other financial services built on shared financial data.

It can be secure when implemented with strong encryption, authentication, secure data sharing protocols and regulatory oversight. Risks increase if governance and industry standards are weak.

Consumers control their own financial data by granting and revoking explicit consent to authorized third party providers.