Open Banking standards have catapulted financial services enterprises into a new world of rapid innovation and enhanced customer experiences. The traditional restrictions associated with older, closed ecosystems have been peeled away by open standards and modern collaborative platforms. This has brought huge benefits but also significant challenges, with banks needing to share data securely with third parties, in line with stringent regulatory requirements.
The rewards are well worth the journey to achieve them. Read on to discover how to overcome the challenges of implementing robust Open Banking and financial services APIs (FAPIs), with a helping hand from Tyk’s FAPI Accelerator.
The benefits of Open Banking
Open Banking is enabling financial institutions to deliver new products and services and connect with service users in new ways. It is also opening up new markets that extend beyond traditional banking customers, with Open Finance following hot on the heels of Open Banking to open up new products, services, and markets.
Collaboration is at the heart of this contemporary financial innovation. Digital financing platform AMAAN Indonesia is an excellent example of this modern approach, working collaboratively with 4,000 field agents to support 1.08 million end users in its mission to empower female micro-entrepreneurs.
The challenges of FAPI implementation
If you’re ready to accelerate your Open Banking adoption, FAPIs are the way forward. They support seamless compliance with a range of regulatory standards and frameworks. These include UK Open Banking, Payment Services Directive 2 (PSD2) in the European Union, Consumer Data Right (CDR) in Australia, and Financial Data Exchange (FDX) in the United States.
Standardized FAPIs enable secure and compliant data sharing between banks and third-party providers. To do so, they must overcome several significant challenges:
- Stringent security requirements relating to data integrity, authenticity, and non-repudiation for sensitive financial transactions
- Complex authentication, such as OAuth 2.0 with Pushed Authorization Requests (PAR) and Demonstrating Proof of Possession (DPoP)
- Secure user consent and authorization flow management
- Real-time event notification subscriptions, for third-party providers to receive account and payment updates
- Cryptographic signatures for notification signing
- Idempotency, to ensure duplicate requests don’t result in duplicate transactions
Addressing these technical elements is one part of the challenge. The other is to do so in a way that provides a seamless developer experience for third-party providers. All while meeting rigorous standards in relation to everything from access control to data sharing.
How does the Tyk FAPI Accelerator help?
Tyk’s FAPI Accelerator enables you to implement robust Open Banking APIs. It supports you to meet security and data sharing standards while delivering modern, innovative and scalable financial APIs.
You can dive into the detail in Tyk Docs to see details of the key components and security features of the FAPI Accelerator, along with payment flow and event notification examples (and much more). At a headline level, the Tyk FAPI Accelerator is built on the Tyk API Gateway. It uses an authorization server (Keycloak) to provide FAPI 2.0 compliant OAuth 2.0 and OpenID Connect, to support PAR and to manage user authentication and consent. A mock bank implementation provides a realistic testing environment, while the TPP Application covers third-party integrations.
From a security perspective, the Tyk FAPI Accelerator implements DPoP, JSON Web Signatures for event notifications, idempotency support and OAuth 2.0 with PAR.
See the Tyk FAPI Accelerator in action
Keen to embrace the benefits of Open Banking as painlessly as possible? Then join us at the free LEAPxFinance online conference on October 16, 2025. It’s your chance to see the Tyk FAPI Accelerator in action, and to discuss excellence in API governance with 100+ peers from across the global financial services sector.
With success story showcases, polls, Q&As and a host of other interactive features, this is the must-attend API governance event of the year for financial services tech leaders. Register here to join us.
