Open Banking is a system based on application programming interface (API) and intended for sharing financial information necessary for the development of financial products and services. Contrary to the conventional centralised management of financial data, Open Banking relies on a technological network of different financial institutions, enabling them to exchange information more efficiently.
In November 2018, the Bank of Lithuania launched a public consultation on Open Banking. Banks and FinTech companies operating in Lithuania as well as foreign market participants were active in giving rich and diverse feedback and suggestions. After the public consultation it was decided to develop a financial sector API register, while a working group of the Payments Council is further exploring the possibilities of the development of Open Banking.
The Bank of Lithuania is planning to develop the financial sector API register. It will allow developers of digital financial products to receive necessary information on available APIs from one source. In addition to developing the API register, the Bank of Lithuania also plans on making the most popular of its APIs public.
Chaired by the Bank of Lithuania, the Payments Council Working Group on Development of Open Banking comprises the representatives of consumers, FinTech companies, banks and the Ministry of Finance of the Republic of Lithuania. The Working Group will present its proposals on development of Open Banking to the Payments Council on 2020.