Choosing an Open Banking Provider? Here's What to Look For

Businesses around the world are quickly adopting open banking, pushing the global market to €23.13 billion in 2023 – and it's set to continue its rapid growth at a CAGR of 27.4% through 2030.

From e-commerce stores to fintech startups and large enterprises, the right open banking provider ensures secure transactions, better financial insights, and a seamless customer experience. But with so many options, where do you start?

This guide covers the essentials: what open banking providers do, how they work, and how to choose the best fit for your business.

What is an Open Banking Provider?

An open banking provider enables secure API-based connections between financial institutions, businesses, and third-party applications. By facilitating real-time data exchange and payments, these platforms streamline transactions, enhance financial oversight, and improve customer experiences.

More than just connectors, they help businesses integrate complex financial processes, drive innovation in payments and lending, and ensure compliance, security, and efficiency.

How Open Banking Providers Work

Open banking providers act as a bridge between businesses and financial institutions, using secure APIs to facilitate real-time data exchange and payments. They work by:

• Connecting to banks through regulated APIs, ensuring secure access to financial data.
• Enabling businesses to retrieve customer-permissioned data for better decision-making and personalisation.
• Processing instant payments without intermediaries, reducing costs and transaction delays.
• Automating financial operations like reconciliation, fraud detection, and compliance reporting.

By integrating these services, open banking providers streamline financial processes, enhance efficiency, and improve customer experiences.

How to Choose the Best Open Banking Provider

Selecting the right open banking partner is a strategic decision – one that directly impacts your operational efficiency, customer experience, and overall growth.

Here’s what to look for in an open banking provider to ensure the best fit for your business:

Coverage and geographic capabilities

Your open banking platform provider should be able to connect seamlessly with the banks your customers use every day, wherever they're located. Strong regional coverage means fewer transaction failures, smoother cross-border payments, and a better experience for customers. Consider these essentials:

• Does the provider support your key markets and currencies?
• What percentage of banks and the banked population do they connect with?
• How reliable are their cross-border transactions?
• Do they support both consumer and business accounts?
• What is the provider’s payment acceptance rate?

A provider with expansive, relevant coverage helps your business thrive, no matter where your customers are.

Noda’s Open Banking Advantage

Noda connects businesses across 28 countries, including the UK, Canada, Brazil, and Europe, with over 2,000 bank integrations and real-time multi-currency support. This ensures fast, seamless transactions without delays or conversion issues. Whether expanding into new markets or optimising local payments, Noda’s network minimises failures and delivers a smooth payment experience for businesses and customers.

API reliability and performance

High-quality systems keep payments running smoothly, provide faster data access, and minimise downtime. A reliable open banking API provider ensures quicker transactions, fewer errors, and less strain on your tech team. Key factors to look for include:

• High uptime and fast response rates.
• Clear, comprehensive, and developer-friendly documentation.
• A sandbox environment for testing integrations and ensuring compatibility before fully launching.

Robust APIs directly translate to improved customer experiences and greater operational efficiency, giving your business a competitive edge.

Noda’s Open Banking Advantage

Noda’s APIs ensure speed, reliability, and real-time transactions for seamless integration. With Noda Documentation, Noda Demo, and developer tools – businesses can integrate quickly. A sandbox mode in Noda Hub allows testing for OpenCart and WooCommerce plugins without affecting live transactions.

Security and regulatory compliance

Open banking is built on trust, making security and compliance absolutely crucial. Your provider needs to demonstrate strict adherence to standards like PSD2 and GDPR, offering your customers confidence that their data and money are protected.

You should closely examine the provider’s approach to data protection, including:

• Use of strong encryption methods to secure data exchanges.
• Adherence to PSD2’s Strong Customer Authentication (SCA) standards.
• Regular security monitoring, audits, and proactive threat detection.
• Commitment to maintaining compliance across changing regulatory frameworks.

Providers that prioritise robust security reduce your business's exposure to risk and build lasting customer trust.

Noda’s Open Banking Advantage

Noda complies with PSD2, GDPR, and regional financial regulations to keep your business secure. Transactions are protected by bank-level encryption, Strong Customer Authentication (SCA), and regulated open banking APIs. Real-time fraud monitoring detects and stops threats, ensuring safe payments for merchants and customers.

Product Features and Functionality

Before diving into features, get clear on what your business needs. Are you aiming for faster transactions, lower costs, or a smoother checkout experience? Or is your priority seamless access to financial data for insights, automation, or compliance? 

Understanding your priorities helps you choose a solution that truly works for you.

• Multiple payment options – Secure bank transfers, card payments, and instant payment links for seamless transactions.
• Customisable payment flows – No-code pages and streamlined checkout forms for a frictionless user experience.
• Secure account verification – Bank sign-in authentication for safer transactions.
• Data-driven insights – Advanced analytics to improve financial decision-making.

If payments are a priority, think about whether open banking alone works for you, or if adding other payment options would better serve your customers.

Noda’s Open Banking Advantage

Noda aligns payment solutions with your goals, offering easy Card Payments, No-code Payment Page, and Instant Payment Links for social selling. Fast payouts simplify disbursements, while secure bank sign-in and data enrichment tools keep transactions safe and financial insights clear. Ideal for businesses in e-commerce, SaaS, hospitality, marketplaces, gaming, and more.

Integration Speed and Ease

A smooth integration process keeps your business running without delays or disruptions. The best open banking providers for businesses ensure seamless implementation, allowing you to leverage their capabilities faster.

Clear documentation, developer-friendly tools, and responsive technical support reduce the burden on your internal team and simplify setup. Key factors that influence ease of integration include:

• Clarity and depth of technical documentation.
• Availability of sandbox environments for testing integrations thoroughly.
• Typical timeline from initial onboarding to live deployment.
• Level of dedicated technical support provided during integration.

Providers that simplify and accelerate integration help your business adapt quickly to market demands and customer expectations.

Noda’s Open Banking Advantage

Noda simplifies payments with e-commerce plugins, APIs, and no-code solutions, cutting out intermediaries and reducing costs. Online stores, SaaS platforms, and digital businesses get faster payments, smoother checkouts, and an easy way to manage transactions at scale.

Transparent and predictable pricing models

Clear, scalable pricing helps your business manage budgets effectively and plan strategically. Your open banking provider’s cost structure should be straightforward, predictable, and aligned to your transaction volumes and growth trajectory. Ambiguous or hidden fees complicate financial planning and can negatively affect your overall profitability.

To ensure your chosen provider supports your financial objectives, clarify:

• How clearly and transparently they communicate costs.
• If their pricing structure scales proportionally as transaction volumes increase.
• If there are any hidden or additional charges outside the standard pricing model.

Transparent pricing structures empower your business to scale confidently without unexpected costs.

Noda’s Open Banking Advantage

Noda offers one of the most cost-effective pricing models in open banking, with fees starting at 0.1% per transaction – much lower than traditional card payments. With no hidden fees, no monthly subscriptions, and no chargeback costs, businesses can process payments without worrying about unpredictable expenses.

Reliable Support for Long-Term Success

Effective support goes beyond integration – it ensures your open banking operations run smoothly and continuously improve. A provider with responsive, proactive support helps resolve issues quickly and optimise financial processes.

Key aspects of strong support include:

• Fast, accessible technical assistance.
• Dedicated account management for operational efficiency.
• Proactive communication to address challenges and opportunities.
• Ongoing guidance to maximise your integration’s value.

A provider that prioritises reliable support becomes a strategic partner, driving long-term growth and efficiency.

Noda’s Open Banking Advantage

Noda assigns dedicated account managers to provide personalised support, ensuring businesses get expert guidance and quick resolutions when needed. By proactively optimising payment performance and streamlining transactions, Noda helps businesses stay efficient and focused on growth while handling the technical complexities in the background.

See Open Banking in Action with Noda

Now that you understand what to look for in an open banking provider, the next step is seeing it in action. Noda is built for businesses that value efficiency, security, and a seamless payment experience.

A quick demo will show you how integration works, what to expect during setup, and how Noda can support your payment operations.

Book a demo today to explore the benefits and see if it’s the right fit for your business.