In Features of Open Banking API, I described how technically Open Banking work. I only touched on what are the examples of types of solutions that use Open Banking.
Below you can find (of course, an incomplete) list of services that use Open Banking. There are other companies that offer Open Banking combined with their services (e.g. Canopy) or mix several of the services (e.g. Klarna)
Account aggregators
They aggregate all the accounts into one place (app). It enhances the user experience.
Example: Money Dashboard
Budgeting and Financial advisory
Presenting user’s financial data with a nice UI/UX is just the beginning. Many apps provide a nice interface for calculating the budget and forecasting future financial situations. Some of them include more sophisticated solutions with AI bots working like financial advisors helping to achieve financial goals.
Example: Cleo
Credit scoring
With access to the transactions on the bank account, it is possible to approximate the credit score of an individual, income and affordability.
Example: Credit Karma
Identity and account verification
An account verification through the bank account is one of the most reliable ways of identification on the internet. Let alone if the identity is matched with a received payment.
Example: DirectID
KYC and opening new accounts
Similar to credit scoring but can be used for opening new accounts since you can reliably obtain user data from the user account. In many cases, you do not need much more to conduct KYC.
Example: SopraBanking
Reducing paperwork and manual filling of the forms
Very similar to the previous one but used for onboarding or applications, for example for a loan. It saves time. The user just authenticates the bank account in the service and a lot of manual form filling is done automatically in a fraction of time.
Example: Zopa
Automated accounting
Integration of accounting software with Open Banking API helps with automatic bookkeeping and accounting in general.
Example: Quickbooks
Tax calculation
With seeing all the transactions, it is fairly easy to calculate how much tax the user owes. Apps using Open Banking can do it seamlessly.
Example: Coconut
Payments
An obvious one. You can not only read the financial data of the user but also initiate the payment. What is great is that it is a bank transfer so you do not pay a card fee.
Example: Coupay
Subscription Management
By getting an overview of recurring payments and being able to initiate them and stop them we can manage subscriptions in a user-friendly way.
Example: Emma
Savings
Saving Open Banking API apps usually put aside money aside every time an event happens, for example, it rounds up some expenditures.
Example: Chip
Donations
Work in the same way as savings but instead of putting money into saving accounts, it transfers money for a good cause.
Example: Swiftaid
Loyalty programs
Points or discounts at certain partners can be obtained directly by paying for the services rather than using a separate card.
Example: loyalBe
Comparison of financial products
Thanks to the availability of data regarding currently used products, users can receive comparisons of other offers which, in turn, can be more profitable for them.
Example: Mojo Mortgages
Complex transactions
Automatic transactions or even more complex solutions can be another way to use Open Banking. For example, businesses can receive short-term operational loans after getting access to their income data and automatic loan repayment with client transactions.
Example: Square