Open Banking Directory

An open banking directory is a central register that lists the participants in an open banking ecosystem and lets them identify one another securely. It records each bank, or account servicing payment service provider, and each third-party provider, together with its regulatory status, the roles it is authorised for, such as account information or payment initiation, and the technical details of its APIs. The directory also issues or registers the digital certificates that participants use for mutual authentication and message signing. When a third-party provider connects, the bank checks the directory to confirm that the provider is genuine and still authorised. The United Kingdom's open banking implementation runs such a directory, and similar directories support schemes in Brazil, Australia and other markets. Directories reduce the need for each bank and provider to vet every counterparty separately, and they let permissions be withdrawn quickly when a firm loses its licence.