What Does Open Banking Legislation Include?

Netekstre
07-09-2022
5 min Read
What Does Open Banking Legislation Include?

What Does Open Banking Legislation Include?

What awaits us in the future?

Open Banking, which means that the classical banking approach is more integrated into the digital world, redefines the financial life of companies and individuals. Open Banking, where banking transactions and data have a say, not banks, brings many advantages that speed up and facilitate banking processes. In its simplest definition; Open Banking, which enables bank customers to manage their account movements in different banks and many banking transactions from a single platform, continues to create new opportunities with the ever-evolving technology and legal regulations.or.

Open Banking in Turkey Entered Legislation for the First Time in 2013

Open Banking, which first emerged in the UK and then attracted attention in Europe and the world, is expanding its sphere of influence with new initiatives, the number of which is increasing day by day in Turkey. Open Banking, where legal definitions are made with the "Payment Services Directives" known as PSD and PSD-2 in the European Union, has taken its place in the law in Turkey since 2013. First, the first signs of Open Banking are seen with the Law No. 6493 on Payment and Securities Settlement Systems, Payment Services and Electronic Money Institutions. With the ensuing regulations, the rules of the game regarding Open Banking continue to be clarified step by step. While the Law No. 6493 in January 2020 entered into force officially, within the scope of the amendments made to the Law No. 6493 in November 2019; 'Account information services' and 'Payment order initiation services' are defined as two different service areas of Open Banking.

Companies Prepare for Licensing

In addition to the service areas, the current Open Banking legislation in Turkey also clarifies which institutions are authorized. Licensing processes of fintechs that develop Open Banking applications will be carried out by the Central Bank. With the draft regulation prepared at the beginning of 2021, details about licensing are expected to be clarified in the near future.

What Opportunities Does Open Banking Legislation Offer in Turkey?

Open Banking products cover the financial banking transactions of companies as a first step. In the very near future, the advantages offered to commercial accounts will expand to include individual accounts. With Open Banking applications, companies can track their accounts, POS movements, collections and payments in different banks from a single platform, regardless of the bank, through APIs. In addition to tracking banking transactions with Open Banking applications, this data can be automatically transferred to digital management tools (ERP) and recorded.

What kind of a future awaits us with Open Banking?

Considering the developments around the world, it will be possible to open or close bank accounts with Open Banking applications in the near future, and to integrate banking transactions with other applications. In addition, there are regulations that will pave the way for simultaneous banks to acquire customers remotely, and with the merging of these two ends, we will easily manage all processes without leaving our home. For example; While shopping on the e-commerce platform, bank accounts will be easily accessed through these applications; Credit and credit card applications can be made and these transactions can be concluded instantly. In short, Open Banking promises us new experiences as a digital transformation process that paves the way for the data in banks to be used for different purposes in a much wider area within the permission and authorization of customers. With the latest regulation, which paves the way for banks to acquire customers remotely, the wet signature requirement in the banking system is completely eliminated, except for special cases. Thanks to this regulation, which will contribute to the development of Open Banking technologies, processes that require wet signatures such as account opening and closing can now be carried out from home and from anywhere with internet.

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