Open banking vs. open finance: What’s the real difference? 

The terms "open banking" and "open finance" are often used interchangeably, as if they have the exact same meaning. But here’s the thing: they don’t. Whether you're building the next big fintech product or managing compliance at a financial institution, this difference will impact the way you plan, build, and deliver. 

What is open banking? 

Let’s start with open banking. It’s about giving consumers more control by letting financial institutions share consumer-permissioned account data through secure APIs. Open banking has gained momentum in both the UK and EU thanks to regulatory initiatives like PSD2. In the US, it’s been a market-driven movement with a recent push driven by expanding regulatory obligations. 

So what real world use cases are powered by open banking? 

• Connecting your bank account to a budgeting app. 
• Using a dashboard that shows all your checking and savings accounts. 
• Moving money from your bank account directly through a third-party app.

Now let’s broaden our view. Open finance takes the core idea of open banking and expands it to cover your entire financial life. Not just your bank accounts but everything — credit cards, loans, investments, retirement accounts, and even insurance policies. 

Think of it as full-spectrum access. Open finance makes it possible for users to share all this data securely with the services they choose, opening the door to a whole new world of financial innovation. 

Some of the tools open finance can support include: 

• Personalized lending and credit services 
• Smarter investment platforms 
• Holistic financial planning apps 

This is about more than data aggregation, it’s about giving people control over their financial lives. 

Key differences between open banking and open finance 

Understanding these differences is critical for product strategy. Open banking got the conversation started — open finance is where it gets exciting. 

Why the difference matters to your business 

Whether you’re a fintech, financial institution, or data aggregator, the distinction between open banking and open finance is critical because: 

• Wider data access leads to better, more personalized services
• Strong compliance infrastructure keeps you ahead of regulation
• Reliable, secure data sharing builds consumer trust

Open finance is not just the future; it’s happening right now. 

How Akoya powers the future of open finance 

Akoya’s Open Finance Solution connects more than 4,500 financial institutions with fintechs and data recipients. Unlike traditional aggregators that rely on screen scraping, Akoya uses 100% API connections to ensure: 

• Permissioned, secure access to financial data
• High data reliability and uptime 
• Alignment with privacy and data protection standards
  

Open banking may have laid the foundation, but open finance is building the future. As APIs become the new infrastructure of trust in financial services, understanding and investing in the right strategy is key. 

Akoya is helping institutions and innovators unlock the full potential of open finance, securely and at scale. 

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