Open Banking

    The Essence of Open Banking


    Open Banking represents a new stage–model in the development of digital finance, enabling customers to determine to whom, when, and to what extent they share their financial data.


    Open Banking is based on electronic technologies and ensures the secure exchange of financial information between financial institutions and authorised service providers. Data sharing and the execution of related operations are carried out through standardised channels using APIs (Application Programming Interfaces).


    Traditional Banking and Open Banking Models

     



    Key Benefits of Open Banking

    • Control over financial data - Data sharing is carried out only on the basis of the customer’s explicit and informed consent, within a predetermined scope and for a defined period.
    • High security standards - Participating entities are obliged to comply with data security requirements and protect customer rights in accordance with the standards established by the National Bank of Georgia. Customer consent validation and data sharing are carried out through prescribed security mechanisms, including compliance with authentication requirements.
    • Fostering innovation - Open Banking creates conditions for the development of customer-centric, new types of financial services and products.

    Development of Open Banking in Georgia

    Open Banking is an important element of the National Bank of Georgia’s digital financial ecosystem transformation strategy and lays the foundation for the sustainable development of the country’s fintech sector. The National Bank of Georgia, the banking sector, and fintech companies cooperate to establish a standardised, secure, and customer-oriented financial environment.

     

    At the initiative of the National Bank of Georgia, consultations and regular working group meetings regarding the implementation of Open Banking in Georgia began in the summer of 2019. The working group brings together representatives of the National Bank of Georgia, the Banking Association of Georgia, and commercial banks.


    Within the Banking Association of Georgia, an Open Banking Committee was established with the aim of developing standards, supporting the project’s progress, and strengthening coordination among participating parties. With the involvement of the Banking Association of Georgia, commercial banks, and the National Bank of Georgia, the first version of the Open Banking implementation framework was developed in September 2020.


    At the current stage, this document defines the mandatory API services (sharing account information and payment initiation) that financial institutions are required to make available through secure channels. The Open Banking framework is not limited to this mandatory minimum; it also includes additional API services, offering participating parties broader opportunities beyond the baseline (PSD2) requirements. In addition, the process is dynamic, and the framework envisages the possibility of the phased addition of new API services in the future, based on market needs.


    Legal Framework


    The legal framework for Open Banking is set out in Order No. 80/04 of the President of the National Bank of Georgia, “On Approval of the Rule on Inclusion in Open Banking”.


    The purpose of the Order is to regulate the process of inclusion in Open Banking and to ensure the proper functioning, reliability, and security of the services provided by participating entities.


    Open Banking Ecosystem in Georgia


    The Open Banking ecosystem is based on unified rules and standards that define the conditions for the inclusion of participating entities, technical interoperability, data protection principles, and operational resilience requirements. This framework creates a predictable and secure environment and promotes effective cooperation among participating parties.


    The ecosystem provides a foundation for the further development of Open Finance, which over time will expand data-sharing opportunities and support the development of customer-centric financial services.


    Contact


    To contact the National Bank of Georgia regarding Open Banking matters, please use the following contact information:

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