Open banking refers to a process of enabling third-party payment services and providers to access banking information, such as transactions, payment history, etc. This process happens through the use of application programming interfaces (APIs).
There are a few different ways open banking is referred to. The most common ones are:
Open banking technology relies on APIs (application programming interfaces) that are exposed and maintained by all banks across the EU. Every organisation that holds a banking license is obliged to comply with the PSD2 regulations so technically, even companies like wise.com or Klarna should offer PSD2-compliant APIs.
PSD2 defines TPP (Third Party Providers) who are special entities that can perform connections to banking APIs as trusted intermediaries. TPPs are registered with financial authorities in their corresponding countries but may passport their status to other EU countries through a simplified procedure. TPPs leverage a set of eIDAS certificates every time a data transfer session is established to verify themselves and assure a secure connection with the bank.
The customer goes through a process on a website or mobile app where they choose their bank from a list. After providing consents, they are asked to provide their banking details and confirm them with 2 factor authentication, configured with their bank (SMS code or mobile app notification). The data is then transferred to TPP who cleans it (sometimes also modifies the data in some way) and sends it to the ultimate receiver (i.e. a company that asked their customer to go through the process). TPPs are not allowed to store the bank account data for their own purposes, unless there is some other arrangement in place.
Transactionlink has developed a propriatory set of API connections to banks in Poland. It currently offers the widest coverage of banks in the country, as well as the highest level of service availability among it's competitors. Transactionlink owns an AISP license under the polish financial regulator (KNF) and offers the open banking capabilities for consumer, as well as company and corporate accounts.
Even though Transactionlink has developed it's own in-house open banking APIs, it is possible to mix and match this integration with any other integration what fullfills your business need.