7 Steps to Select the best Open banking provider in 2025

Selecting the best Open Banking Provider in 2025

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Open Banking has seen significant growth in recent years, with some industry estimates showing that over 6 million individuals and small businesses have tried Open Banking services in the UK by late 2024—up from around 1 million in 2019. This surge highlights the expanding demand for more transparent, data-driven financial products that can simplify payment processes and offer deeper insights into spending habits.

Selecting an Open Banking provider can still feel daunting. With dozens of FCA-authorised options on the market, each offering its own pricing model, coverage levels, and integration tools, the decision requires careful thought. To make this task more manageable, we present seven essential steps that will help you evaluate potential partners based on compliance, security, performance, bank connectivity, developer support, pricing, and implementation.

After walking through these steps, you’ll find a provider comparison table summarising key features and pricing structures. Whether you run a small startup looking to connect with multiple UK banks or a larger enterprise aiming to enhance your financial data analytics, following this process can help you pick a provider that aligns with your objectives—and keeps you on the right side of regulatory requirements.

This guide outlines a step-by-step process to evaluate and onboard an Open Banking provider efficiently.

Step 1: Define Your Business Needs and Objectives

Before reaching out to potential providers, it is essential to clearly define why your business requires an Open Banking API. Identifying specific use cases helps in selecting the right provider that aligns with your operational and compliance needs.

Key Questions to Consider:

  • What services do you require? (Account Information Services (AISP), Payment Initiation Services (PISP), Verification services)
  • Who are the end-users? (SMBs, fintech startups, financial institutions)
  • What specific challenges are you solving? (Faster payments, improved customer onboarding, risk reduction)
  • Do you have any regulatory or security concerns? (FCA authorisation, GDPR compliance)

By outlining these objectives early, you can shortlist providers that align with your business goals.

Step 2: Verify Regulatory Compliance and Security Standards

Since Open Banking involves handling sensitive financial data, compliance and security should be a primary concern. Choosing a provider that does not meet UK regulatory requirements could lead to potential legal risks and financial penalties.

Regulatory and Security Checks

  • FCA Authorisation – The provider must be registered with the FCA for AISP/PISP services.
  • PSD2 and GDPR Compliance – Strong authentication (SCA) and data protection laws must be adhered to.
  • ISO 27001 Certification – Ensures the provider follows internationally recognised information security standards.
  • Fraud Prevention Tools – Look for real-time fraud detection, multi-factor authentication, and anomaly detection.

How to Verify:

  • Request the provider’s FCA registration details and compliance certificates.
  • Check the FCA’s Open Banking Register for official authorisations.
  • Review security reports and penetration testing records.

Step 3: Assess API Performance and Reliability

API performance is crucial for delivering a smooth user experience. A provider with slow response times or frequent downtime can negatively impact financial transactions and customer trust.

Performance Metrics to Evaluate

  • API Uptime and Response Time – Check for high uptime (above 99.9%) and low latency.
  • Scalability – Ensure the API can handle increased transaction loads without performance degradation.
  • Error Handling and Redundancy – A strong API should offer failover mechanisms to maintain uninterrupted service.

How to Test:

  • Request API uptime history and SLAs from the provider.
  • Run simulated transactions in a sandbox environment to measure speed and error rates.
  • Check third-party reviews and developer forums for performance feedback.

Step 4: Evaluate Developer Resources and Integration Support

The ease of integrating an Open Banking API largely depends on the quality of documentation, developer tools, and available support.

Key Developer Support Features

  • Sandbox Environment – A testing environment to simulate real transactions before going live.
  • Comprehensive API Documentation – Includes sample requests, response formats, authentication methods, and troubleshooting guidelines.
  • SDKs and Prebuilt Libraries – Helps accelerate development for various programming languages.
  • Dedicated Developer Support – Access to API specialists for resolving integration issues.

How to Evaluate Developer Resources:

  • Review API documentation before committing.
  • Check if the provider offers live technical support or an active developer forum.
  • Ask about API versioning and update frequency to ensure minimal disruptions during upgrades.

Step 5: Confirm Bank Coverage and Data Enrichment Capabilities

Not all Open Banking providers offer the same level of bank connectivity or financial data insights. Selecting a provider with broad coverage ensures seamless account linking across multiple institutions.

Key Factors to Consider

  • Bank Connectivity – The provider should offer high coverage of UK banks, including major institutions and digital-only banks.
  • Depth of Data Access – Does the API provide only basic account details or advanced insights such as transaction categorisation and spending trends?
  • Data Standardisation – Consistent data formatting across banks minimises integration challenges.

How to Check Bank Coverage:

  • Request a list of supported banks and financial institutions.
  • Test transaction data quality in a sandbox environment.
  • Evaluate the accuracy of transaction categorisation and merchant identification.

Step 6: Review Pricing Models and Hidden Costs

Pricing models for Open Banking APIs can significantly impact long-term costs. Some providers offer flat-rate subscriptions, while others charge per API request or transaction.

Common Pricing Models

  • Flat Monthly Subscription – Fixed cost, ideal for businesses with predictable transaction volumes.
  • Pay-Per-Transaction – Lower upfront cost but can become expensive at scale.
  • Hybrid Model – Includes a base fee plus variable transaction costs, offering flexibility for different business sizes.

Hidden Costs to Watch For:

  • Overage Fees – Extra charges when transaction limits are exceeded.
  • Additional Data Requests – Some providers charge for accessing enriched financial data.
  • Long-Term Contracts – Avoid providers with rigid multi-year commitments unless necessary.

How to Evaluate Pricing:

  • Request a detailed breakdown of all charges upfront.
  • Compare estimated costs based on your projected transaction volume.
  • Ask about free trial periods or a pay-as-you-go model.

Step 7: Final Selection and Implementation Plan

Once you have reviewed all key aspects, the final step is to confirm the selection and prepare for implementation.

Checklist Before Signing Up

  • Verify FCA authorisation and compliance status.
  • Test API performance, latency, and error handling.
  • Review pricing structure and potential hidden costs.
  • Assess developer resources, SDKs, and support availability.
  • Confirm coverage of required UK banks and financial institutions.

Implementation Phases

  1. Initial Setup – Generate API keys, set up authentication, and establish security protocols.
  2. Testing & Validation – Run real-time transaction tests in a sandbox.
  3. Go Live – Start with a limited rollout before full-scale deployment.
  4. Ongoing Monitoring & Optimisation – Track performance, fraud detection, and compliance updates.

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List of Top Open Banking Providers in the UK

Provider Coverage Key Features Industry Focus Pricing Information
Finexer 99% of UK banks, including high-street and challenger banks – Financial operations management
– White-label solutions
– Compliance management
– Rapid deployment
SMBs, Fintech Startups, Accounting & ERPs Finexer Pricing
Yapily Extensive European bank connections – Data aggregation
– Payment initiation
– Real-time updates
Fintechs, Financial Institutions Yapily Pricing
TrueLayer UK and European bank coverage – Data access
– Payment initiation
– Identity verification
Fintechs, E-commerce TrueLayer Pricing
Plaid Expanding UK & European coverage – Data aggregation
– Auth & identity verification
– Secure API integrations
Fintechs, Personal Finance Apps Plaid Pricing
Tink (Visa) Strong presence in 18 European countries – Account aggregation
– Payment initiation
– Data enrichment & analytics
Banks, Fintechs Tink Pricing
Token.io Over 80% of bank accounts across 20 European markets – Account-to-account payments
– Real-time transactions
– Secure data APIs
Banks, Payment Service Providers Token Pricing
GoCardless Global payment network – Direct debit automation
– Payment collection
– API-first payment solutions
Subscription Businesses, Enterprises GoCardless Pricing
Bud UK & European bank integrations – Data intelligence
– Personal finance insights
– Open banking analytics
Banks, Credit Lenders, Wealth Management Bud Pricing
Moneyhub UK & European financial institution coverage – Data aggregation
– Payment initiation
– Wealth & investment insights
Financial Advisors, Banks, Insurance Providers Moneyhub Pricing
Salt Edge Global coverage in Europe, North America, and beyond – Secure account access
– Compliance solutions
– AI-driven financial analytics
Fintechs, Banks, Lenders Salt Edge Pricing
Envestnet Yodlee Large-scale global financial data access – AI-powered financial data processing
– Aggregation & categorisation
– Open banking compliance tools
Banks, Wealth Management, Credit Scoring Envestnet Yodlee Pricing
Volt Global real-time payments network – Instant account-to-account payments
– Fraud prevention tools
– Smart routing for payment flows
E-commerce, Merchants, Marketplaces Volt Pricing
FAQs
Is Open Banking the same as PSD2, or do I need to comply with both? +
PSD2 (Payment Services Directive 2) is an EU regulation that paved the way for Open Banking. Open Banking in the UK is a framework established by the CMA that implements parts of PSD2. If you operate in the UK, you must adhere to the local Open Banking guidelines and also ensure PSD2 compliance where applicable (e.g., if you serve EU customers).
Do I need my own FCA authorisation, or can I rely solely on my Open Banking provider’s license? +
If you’re providing account information services or payment initiation services directly to end users, you generally need your own FCA authorisation. Some businesses, however, can operate under a provider’s FCA umbrella through “agent” or “authorised representative” models. Always consult with a legal expert to confirm whether your specific use case requires direct registration.
What’s the difference between Account Information Services (AIS) and Payment Initiation Services (PIS)? +
AIS (Account Information Services) gives you access to customer account data, such as balances and transactions. PIS (Payment Initiation Services) allows you to initiate payments on behalf of the user directly from their bank account. Depending on your business model, you may need one or both services.
How quickly can I integrate a new Open Banking API into my existing systems? +
Integration speed varies based on the provider’s documentation, SDK availability, and developer support. Some businesses can integrate within a few weeks if their use case is straightforward. Complex or custom integrations might take several months.
What if the bank coverage I need isn’t fully supported by one provider? +
Bank coverage can differ significantly across providers. Some excel with major high-street banks, while others specialise in digital challenger banks. You may need multiple providers if coverage gaps exist, but this adds complexity and cost. It’s worth checking each provider’s roadmap for upcoming bank integrations.
How can I verify a provider’s security claims beyond just reading their marketing materials? +
Ask for formal security audits, penetration testing reports, and recognised certifications like ISO 27001. Also, check the FCA’s Open Banking Register to confirm the provider’s authorisation status. Real-world evidence of strong encryption methods and fraud prevention tools is crucial.
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