Token's Open Banking SDK for Third-Party Providers

With open banking, third-parties help their customers save money, borrow easily, and pay painlessly. Token's technology and unique approach gives your users the options they want to maximize the value they get from their bank.

That's because open banking is the practice of sharing financial information electronically, securely, and only under customer-approved conditions. For instance, third-party personal financial management (PFMClosedPersonal Financial Management – refers to software that helps users manage their money. PFM often lets users categorize transactions and add accounts from multiple institutions into a single view.) tools can help their users track spending and reach their financial goals. Payments are another significant piece of open banking. Under PSD2ClosedPSD2 stands for Payment Services Directive 2 and is a new EU regulation in effect since September 14, 2019. It governs electronic and other non-cash payments. The main provision of PSD2 is for Strong Customer Authentication (SCA), a process that seeks to make online payments more secure and reduce fraud while increasing authorisation rates. The European Banking Authority (EBA) recently extended the deadline for PSD2 compliance until December 31, 2020., banks must allow third-parties to initiate payments on their users' behalf. Merchants and other business with an online presence benefit from reduced payment processing costs.

Currently, some apps and websites exploit a technique called screen-scraping, which involves giving a TPP the user's login details and password so it can login to the customer's account and analyse the financial information therein or make payments on the customer's behalf. But, with open banking, the user is never asked to share a bank password or login details with anyone other than the bank. The customer is in control, choosing which services to use and which providers will get account data access.

Before getting started with TPP onboarding and integration, let's briefly explore some fundamental concepts and the key services underlying Token's open banking solution.

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