BBVA, Capital One, and Barclays all have open banking characteristics. Read on to learn more about these open banking examples.
In an open banking system, third parties can access a bank's application programming interfaces (APIs). This allows the third parties to create new apps and services that are of value to the bank and its customers.
In essence, the system turns banks and emerging fintech companies into partners instead of remaining merely competitors. There are numerous examples of such relationships.
BBVA was the first U.S. bank to offer a full suite of what it describes as "banking as a service" products. BBVA's Open Platform program was launched with the goal of offering products and services to businesses that want to offer customers financial products without having to take on full banking.
Capital One named its developer platform "DevExchange." It sells this platform as "your portal to our trusted API solutions," allowing third parties to help customers view Capital One accounts via tokens instead of credentials.
Barclays also boasts account aggregation inside its mobile banking app. Customers can use Barclays' mobile app to view their accounts with other banks.
But as with any other innovation, open banking is bound to have its share of successes and failures, and products with limited lifespans. For example, in 2018, HSBC launched the Connected Money app, which was was a direct response to the open banking concept that consumers should have more control of their financial data.
However, HSBC eventually dropped its Connected Money app and folded the best features into the bank's main mobile banking app.