Fintech Startups to Watch in the Open Banking Space - Featured Image | CEO Monthly

Fintech Startups to Watch in the Open Banking Space

Open banking has emerged as one of the most significant developments in the financial services industry in recent years. With open banking, third-party providers can access financial data and services through APIs, allowing for greater innovation and competition in the market. This has led to the rise of many fintech startups that are leveraging open banking to create new products and services.

What is Open Banking?

Open banking is a system that allows third-party providers to access financial data and services through APIs. This means that customers can share their financial data with other organizations, such as fintech startups or other banks, which can then use that data to provide new financial products and services.

Open banking was introduced in response to the increasing digitization of the financial services industry, as well as the growing demand for more personalized and innovative financial products. By allowing third-party providers to access financial data, open banking creates a more competitive market, which can lead to better services and lower costs for consumers.

There are two main types of open banking: regulatory and voluntary. Regulatory open banking is mandated by government regulations, such as the EU’s PSD2 (Payment Services Directive 2), which requires banks to provide third-party providers with access to customer data through APIs. Voluntary open banking, on the other hand, is when banks choose to offer API access to third-party providers on their own accord, without any regulatory mandate.

How Fintech Startups are Using Open Banking to Create Innovative Financial Products and Services

One such fintech startup is Exactly, which offers a range of open banking services to businesses. Their open banking platform enables businesses to connect to their customers’ bank accounts and access real-time data, enabling them to provide more personalized and relevant financial products and services. Additionally, Exactly’s payment gateway and payment processing services enable businesses to easily accept payments online, and GoCardless.com allows to offer recurring payments and instant bank pay options.

GoCardless, on the other hand, focuses specifically on recurring payments and direct debits. Their instant bank pay product enables businesses to offer their customers a fast and seamless way to make payments directly from their bank accounts. Meanwhile, their recurring payments product allows businesses to set up and manage regular payments, making it ideal for subscription-based businesses.

Other fintech startups to watch in the open banking space include:

1. Tink: This Sweden-based fintech startup offers an open banking platform that allows businesses to access financial data from across Europe, making it easier to provide personalized financial products and services.

2. Railsbank: Railsbank is a UK-based fintech startup that offers a range of open banking services, including account management, card issuance, and payment processing.

3. TrueLayer: TrueLayer is a UK-based fintech startup that offers a range of open banking APIs, including payment initiation, account information, and authentication.

Overall, the open banking space is rapidly evolving, with new fintech startups emerging all the time. Exactly and GoCardless are just two examples of fintech startups that are leveraging open banking to create innovative new products and services. As the industry continues to grow, it will be interesting to see what other new startups emerge and how they will shape the future of financial services.

Want to Be Recognised? Enter Our Awards Today!

Learn how to get recognised for your achievements and become a nominee in our prestigious awards programmes. Discover the criteria and steps needed to showcase your leadership excellence.

Find Out More
Get recognised banner - woman holding device

You might also like

Explore insights and updates tailored for business leaders and innovators, curated to inspire success.

June 5, 2018 Quantifi: Innovation in Fintech

Founded in 2002, Quantifi has over 180 clients across 40 countries including 5 of the 6 largest global banks, 2 of the 3 largest asset managers, leading hedge funds, pension funds, insurers, brokers, clearing members, corporates and other financia...

June 1, 2021 Not working 9-5! Nine in Ten Millennials Now Expect a Flexible Working Week

Those aged 25-34-years-old are most likely to expect more flexibility in their typical working week in a post COVID-19 world, according to research from flexible office specialists Workthere.

October 8, 2019 Renewtrak brings its white label SaaS to vendors, distributors and resellers, finally enabling capture of the notorious renewals long tail

Renewtrak, a Palo Alto-based software-as-a-Service renewals enterprise business has come up with a solution that automates the famously hard nut to crack: the long tail. Here we talk to Renewtrak CEO, Nick McMenemy about Renewtrak.