Connected Accounts - What Is Open Banking?
What is Open Banking?
Open Banking enables the secure sharing of financial data between banks and third-party providers, such as Central Bank regulated entities like NoFrixion, with customer consent. Using APIs, it facilitates seamless data transmission while maintaining security and compliance.
Key Benefits
Connected Accounts provide businesses with a centralised view of their finances, allowing them to access all relevant linked bank accounts in one place. This real-time visibility ensures that businesses can monitor account balances and transactions without the need for manual checks.
Regulatory Framework & Security
The EU’s revised Payment Services Directive (PSD2) mandates Open Banking across member states, ensuring:
- Strong Customer Authentication (SCA) for secure transactions
- Strict data protection rules to safeguard financial information
- A competitive and innovative financial landscape for businesses and consumers
The European Banking Authority (EBA) sets the technical standards, while the Central Bank of Ireland supervises financial institutions such as NoFrixion, and enforces security and consumer protection measures within Ireland.
It is important to note that this feature does not permit fund transfers from the connected account; it strictly provides view-only access to a transaction feed.