FAQ

Open Banking is a transparent and reliable service model in which APIs for basic banking services are shared with third-party service providers (TPP) within the framework of security measures. With this business model, certain financial information is shared, multi-faceted banking services are provided by taking into account the consent of the customers. The two biggest drivers of open banking are innovation and regulation.

Open banking is built on two core services: “account information services” (AIS) and “payment initiation services” (PIS). With the AIS service, fintechs can access different bank accounts of the customers and, for example, present all customer accounts to their customers on a single screen with a different interface. With the PIS service, the payment between the bank and the seller can be managed during the online shopping of a bank customer and, for example, direct payment applications can be developed from the customer's account. In order for all these services to be realized, service providers must obtain the consent of the customer and manage their approval through the banks' APIs.

In the open banking ecosystem, while banks open their various services to the outside world through APIs, fintechs have focused on developing innovative financial applications through these services. Another role in this ecosystem has been taken over by regulators and they have developed standards that ensure that open banking services are secure, protected and manageable. At the beginning of these regulations are the UK-based Payment Service Directive (PSD) and Germany-based Berlin Group Standards. PSD2 (Payment Service Directive) is the second of the payment services directive designed in the UK and European Union countries as of 13 January 2018, which determines the method and flow between institutions and third party service providers. This new directive, presented as Payment Services Directive 2 (PSD2- Payment Services Directive 2), laid the foundations of Open banking and created a new service model that will enable third party institutions to access financial data of users and increase customer experience. In this sense, while Open Banking is this service model, PSD2 is the set of directives required to comply with this service model, and the two are inseparable.

Using its vast knowledge and experience in banking software, Architecht has developed the Airapi product by considering all the requirements for Open Banking Infrastructure. Airapi offers an advanced feature set and various benefits that will increase your API maturity level and ease your transition from Open Banking to Service Banking.

With the solutions developed by Airapi for your customer verification and authorization processes, you can establish new partnerships by working in harmony with fintech companies and third party applications. You can manage the customer's consent management in accordance with the standards. With Service Model Banking (“Banking as a Service-BaaS”), interface developers can connect with service banks' systems through open banking platforms and perform banking transactions on behalf of their customers. Thus, the financial inclusion of banks increases and Fintechs can also provide banking services.