Open Banking, which came into our lives with the "Law No. 6493 on Payment and Securities Settlement Systems, Payment Services and Electronic Money Institutions" that came into force in Turkey in 2013, has continued its development with various regulations since then. The year 2022 appears to be a turning point for Open Banking, which has been implemented and made available to businesses since January 1, 2020.
What is Open Banking?
Open Banking, which enables businesses to manage their bank accounts on a single platform since 2020, is also known as API banking. APIs, whose Turkish equivalent is Programming Interface, allow third-party software to come into play between banks and customers. In this way, customers who allow their information to be shared securely can present their banking data through fintech platforms that develop third-party software. Starting from 2020, commercial bank accounts; Starting from December 2022, different bank accounts of individual customers can be managed on another platform thanks to Open Banking.
What are the Regulations in 2022 in the Open Banking Revolution? The latest legal regulation, which is revolutionary in terms of Open Banking, came into force in December 2022 and is now available to the experience of individual banking customers. Thanks to many new technologies paved the way for Open Banking, not only bank accounts but also important banking processes of businesses such as POS and direct debit systems can be monitored on a single screen. Additionally, loans, credit cards, etc. are provided by e-commerce and payment platforms. Banking products can be managed on a single platform. As of December 2022, Open Banking applications that make the lives of businesses easier can now be used by individual banking customers. In this way, banks allow their customers to view and transact their accounts in different banks through their own applications, while making it easier for non-finance-oriented companies such as telecommunications, e-commerce and technology companies to enter the sector, as well as fintechs.
More Products and Services in the New Era of Open Banking "Gateway", designed by the Central Bank of the Republic of Turkey and for which legal regulations have been prepared, increases the inclusiveness of the Open Banking model. The democratization of data of individual consumers as well as businesses enables the development of the collaboration environment between fintechs, banks and other non-financial platforms. Thus, while bank customers now have more control over their own data, they increase the number of platforms and service diversity on which banking services can be obtained. In the new era of Open Banking, bank customers can view their accounts in different banks on a single bank application or a third-party platform, thanks to account merging. Customers, who can make analyzes and reports regarding these accounts from a single screen, can transfer money between accounts from a single interface. Thus, troublesome processes such as a separate application for each bank and remembering username and password information become a thing of the past. New services and technologies can be developed with reference to Open Banking, examples of which we have begun to see and whose numbers are expected to increase rapidly. The days when democratized data will be reinterpreted in favor of bank customers through other digital platforms included in the process and financial life becomes easier await us. The latest legal regulation, which is revolutionary in terms of Open Banking, came into force in December 2022 and is now available to the experience of individual banking customers. What Will Open Banking Processes Be Like With the New Regulation? There are More Products and Services in the New Era of Open Banking.
